Competitive advantage in the use of enterprise resource planning (ERP) systems comes from customised end-user tools built on the robust baseline platform, not from changing the applications to conform to the business, says Peter Wolfe, business development manager for Computer Science Corporation`s South African operation.
"Agile use of the systems depends on straightforward implementation of the application. Companies don`t need to change the way the applications work to get valuable information from ERP systems.
"They need to adapt their operational processes to those in the software, and then develop user tools that extract the data in a format that is relevant to their strategic goals. Niche business processes for competitive advantage are the only exclusion.
"Too much time is wasted fighting fires on the baseline application and infrastructure level. ERP systems should be viewed as the electricity supply to companies` strategic needs and the end-user tools being the chosen `appliances`. Don`t expend energy trying to re-shape how this `service` is delivered. It is how you use that service that is important."
Only when South African companies start focusing their ingenuity and energy on gaining better insights into current and future trends through the smart use of information delivered to the desktop will they start functioning with the intelligence and wisdom derived from their systems.
"It`s at the end-user delivery level that adaptation of ERP-system output should occur to give management the competitive differentiator, not at the system`s coalface. At the end-user level, scenario planning has greater accuracy so adapting business tactics in response to changing market pressures is easier and far more effective."
Even better, suggests Wolfe, is outsourcing the implementation and maintenance of ERP systems so that the IT department, which is in tune with the corporate vision, can move up the value chain in the company and concentrate its ingenuity on ensuring that the end-user tools deliver the information that adds value to management decision-making.
"Competitive advantage comes from having the freedom from sweating about technology and having the space to think and experiment with new ideas, yet so many businesses waste time trying to get the basic software to adapt to their way of operating."
He says the top-range ERP systems are an amalgam of the wealth of best practices from the world`s major corporations, yet South African companies prefer to re-invent the wheel rather than adapt.
"The skill in leveraging an ERP system comes from understanding how to align the information it delivers with corporate strategic objectives. My advice to companies is not to waste time on software customisation, unless it is not delivered as standard functionality, but rather invest time and in-house IT skills in making the best use out of information."
Wolfe believes many South African companies spend time adapting their systems because they are reluctant to change the way they operate.
"They`re hesitant to let go of the familiar. They don`t yet grasp the notion that implementing a top-notch ERP system will liberate them from managing the technology and allow them to be innovative in how to use it."
Wolfe says business users all too often have functional gaps between the way in which they run their systems and the way in which the new, or upgraded, systems have been designed with best demonstrated practices.
"Once a business has aligned its operations with its new ERP system, it has more time to focus on successfully delivering the critical information management needs to address daily issues and deliver it in the format in which this knowledge is needed by each category of management.
"This also enables management to gain business insight by having a system that gives them the information they need to have a wise outlook and plan, and set an informed and intelligent course of action."
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CSC offers the South African market a wide range of services, including systems integration, application and infrastructure outsourcing, and business process outsourcing, as well as financial services solutions.
In South Africa, CSC also provides business process outsourcing (BPO) services to manage the policy processing and administration for its US and UK financial services customers who include banking, short-term insurance, and life and pensions providers.
A leading IT services provider, CSC adds value through its collaborative approach to delivering fast, reliable and flexible solutions. CSC opened its doors in South Africa in November 1999 and today has offices in Johannesburg and Cape Town. For more information, contact (021) 529 6500 or (011) 612 5400.
CSC
Founded in 1959, Computer Sciences Corporation is a leading global IT services company. CSC`s mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.
With approximately 79 000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC`s own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, California, CSC reported revenue of $14.6 billion for the 12 months ended 31 March 2006. For more information, visit the company`s Web site at www.csc.com.
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