November 1997 • Volume 7 • Number 11
The Millennium...It's Here!
By Donald H. Sheldon, CFPIM, CIRM
I'm sitting at my home office as I write this.
It's one of my favorite places. The mood is peaceful here
and it seems good to be stationary for a moment, especially
as we close in on the end of the century. The millennium has
everyone busily running, either looking for software or
checking to see if their existing information management
brew can get them through the barrier (or what Bill Clinton
calls "the bridge to the next century"). I used to have a
strong dislike for software — it took resources away
from the really important elements of improving company
performance: understanding market need, performance
reporting and problem solving/opportunity mining. That
concept is still true, but recent software tools have
changed as has my position. I guess it's hard for me to
admit it, but today's business system software can actually
facilitate business improvement.
The evidence is there. I've been around quite a few Class A ERP organizations. These high-performance organizations typically find the need to change their performance measurements frequently. They do this to ratchet their challenges and improve performance and results. By the evidence that they are Class A, these organizations have demonstrated continuous improvement as a norm. The faster these organizations change, the more value the new business software tools can bring to the party. Many of today's business system solutions are much more flexible and able to support this rate of change in information requirements, unlike the old versions.
Downloading data for problem solving is much more easily facilitated. PC tools are now part of the whole system, not islands of disconnected information. Root cause analysis is not only possible, but reasonably supported. So as I sit here looking out my window, enjoying a peaceful view of the upcoming millennium change, the wave of software seeking energy continues to build momentum. The professionals used to say software would only bring 20 percent of the total return from a Class A ERP implementation and that the balance (80 percent) would come from the management side of improvement. I'm now prepared to give software additional credit — maybe 20 to 25 percent.
That still may not seem like much credit, but it is an important 25 percent. The return from a business system can also come farther upstream in the process of implementing ERP than traditionally understood and taught. Additionally, unlike the past where companies had to slip the clutch for weeks when turning on new software, much of the new mid-range systems, if you do your homework and get the proper education, are easier to initiate. The millennium may actually be a good catalyst for change.
Four wild turkeys have just wandered into my view on the hill behind my office. They don't seem bothered by the millennium. It's a pleasure to see these proud old birds, but it reminds me — I need to go catch my plane.
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Contributors note: |
Donald H. Sheldon is vice president of Buker Inc., a worldwide management education and consulting firm in Chicago. He is also the author of "The Road to Class A Manufacturing Resource Planning (MRP II)."
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