Enterprise Application Implementation Strategy
November 11, 2007 by Raj Sheelvant
When an organization starts as a small firm, there is usually no financial bandwidth to implement an elaborate Enterprise Application. The firm is usually functioning on a shoe string budget. The most important resource, capital is extremely scarce and is allocated very carefully to create a steady cash flow. Enterprise Application, though helps set a firm’s foundation on a sound footing for the organization to grow organically, does not initially enable cash flow. So the firm in its infancy builds and runs its business processes with applications that are barebones Excel based or some sort of shareware/open source software systems. Though, building an organization on a strong foundation of Enterprise Application is ideal, small organizations bucket the implementation of Enterprise Application as a ‘nice to have’ category and move on…
As the organization grows, the rudimentary applications grow with the firm and for a long time the firm can survive on these internally built and ‘enhanced’ software systems. These applications are usually written and rewritten by several people with no formal exposure to software development methodology. They do not understand the complexity of maintenance, deployment and testing. These systems do not usually scale easily. Hence large number of employees is needed to be hired to run the organization around these software systems. The human glue keeps this collection of hodge-podge systems in synchronization. When the organization begins to reach a point of disintegration due to ‘fragile’ and ‘rigid’ business processes based on these rudimentary systems, only then the executives feel the need to implement the Enterprise Application. The Executive directive is passed down to the middle management. After selecting a viable vendor for the Enterprise Application which will encompass some combination of ERP, SCM, CRM depending on the organization, the mammoth exercise of implementing the Enterprise Application begins. This implementation process is akin to changing the plumbing of a house after the house has been built.
So for so good, but what the implantation team does not understand is that there needs to be a delicate balance between customization of Enterprise Application to the organization’s business process and adaptation of firms business process to the ‘canned’ business process provided by the vendor for that Enterprise Application. The people in-charge of implantation of the Enterprise Application needs a solid understanding of the core competencies of their firm. All business processes that do not enable core competencies of the organization can and should be changed to map the pre-generated business processes that are part of the Enterprise Application. They could be configured but the temptation to customize these business processes should be avoided. Why? Because these non core or contextual business process simply play a supporting role for that organization. They do not enable differentiation strategy and hence it’s a waste of important resource to customize these business processes. In my opinion these contextual business process can even be outsourced to some degree without having a negative impact on the organization itself.
But, the business processes that enable or is a part of core competency of that organization should not be retrofitted to the existing ‘canned’ business process provided by the Enterprise Application. Why? Because if the firm’s core competency is mapped to plain vanilla business process provide by the third party vendor, it does not give the organization an ability to sustain its competitive advantage. How can ‘someone else’ understand your firm’s differentiation strategy and your competitive environment? There is no way the business process for the core competencies of the organization can be enabled by the Enterprise Application without loosing that competitive edge. Your competitive advantage is the ‘secret sauce’ and you should try to keep it that way by not ‘watering down’ those business processes to plain vanilla third party vendor developed business process. In my view automating the core competencies of the firms should be tackled by using one of the two ways
- Customizing
Enterprise Application - Writing an internal software system that can interface with the Enterprise Application.
Each has its own pros and cons which I will write in my future blog.
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Comments (3)
Hello,
This article is really good but not enough to understand your experince how to map existing excel applications enteprise applications using java or other professional framework. Do you have some more to share? My mail is hkeskin75@yahoo.com if you want to share. thanks
Enterprise Applications should be customized, but you are correct in saying that too much customization is a waste of resources and it is going to come down to proper training in the end. People always have to adapt to enterprise applications to some extent, it isn’t going to be a perfect match to their business processes.
always nice when the little guy gets taken care of!