The Value of Enterprise Systems - Targeting an improved performance, businesses continue to spend an incredible amount of money and effort to implement large scale Enterprise Systems. But after few years the expected benefits are not always present and the situation is getting worst. CIOs need then not only to justify but also to fix the problem.
Finding a way to quickly assess where we stand and how the sitation can be improved according to changing conditions is becoming the CIO’s Nightmare. Here is a process, I developped to make us dream again.
The approach suggests to:
- Assess the usage and current stance of an Enterprise Systems
- Modelize the different scenario and define strategies
- Develop a proper action plan
2 - MODELIZE
The evaluation of the 2 criterias (In Control & Efficency) being done, we can report the scoring to a matrix which will enable us to capture the different scenerio we need to tackle with.
Risks: With a poor efficiency and low controls, this system/process is in pretty bad shape. This quadrant reflects an organization that did not absorb technology to its processes. It could be for different reasons that will be analyze later. However we know for sure that even if a technical side can be addressed, success in improving the situation will come from the set up and enforcement of a stronger governance.
Potentials: Here the system is in control, however their is an opportunity to be better efficient. Either the organization did not leverage enough the system or the system does not offer such capability. Either way there is room for improvements in such scenario.
Stars: Good controls & Efficiency. The organization should now look beyond the current situation and find out about new potential capabilities that could grow even further their performance. Most businesses can stay in this position for years with a limited investment and discover themselves one day in the risk quadrand.
UFO: Here is a weird situation, that I saw happening time to time. In such situation, I advise to investigate more and restart the assessment with complementary set of information. Most of the time, we discover that the organization was not in control at all of their system.
The simplicity of model provide us with a rapid way of looking at our endavor.
In the next and final post I will suggest a list of variables that will help in building a proper action plan and ensure that strong strategic alignment drives the elaboration of key priorities. I suggest the reading of “CIOs – Manage your S-Curve” prior reading my next post.
I welcome comments and feedback.