- ERP can assist your company with business execution but not by itself
- Microsoft Word can help you write a sales letter but not by itself
- CRM can help your company track and manage a sales pipeline but not by itself
Systems, by themselves, contribute nothing. They are a platform or a tool but little more. A golf professional will get a much different result than a rank amateur like me using the same set of clubs.
What’s missing? People and processes that drive the systems.
What is one of weakest links in ERP? The sales forecast–the starting point. While this is an input to ERP, it is often off by 5% to 100% or more. People need to make sense of the forecast so a production plan can be created that approximates reality.
- Too much production leads to excess inventory with the risk of obsolescence.
- Too little inventory means missed revenue and disappointed customers.
When there are gaps and breakdowns, are you blaming the systems or the people and processes? Generally, systems aren’t the starting place to look for root cause.
Thought for the week:
“Of course digital disruption isn’t really about technology at all…it’s about changing people and process! That’s very hard!” – Matt Eastwood, SVP, IDC via Twitter
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