Digital Transformation Myth busters:
Since more than a decade, most of the manufacturing companies have adopted Digital Transformation to boost their plant efficiency
as well as to reduce their plant downtime.
Further in this process they have implemented ERP Solutions.
As a result they found that ERP Solutions stand as Giants in the world of Business Management.
However they were not aware that while adopting new technology using great tools
they got surrounded with great myths too while implementing Digital Transformation.
I am P.K. Saxena and I am working as CTO in Sofcon Systems India Pvt. Ltd.
Sofcon Systems is an Automation Solution provider company and has been located in NOIDA, India since more than 27+ years.
Also I am taking Kyler Cheatham from Third Stage Consulting Group as my guide for unfolding world of those myths while preparing this article.
Kyler Chetam is working as Director Marketing in Third Stage Consulting Group.
In brief this group is a completely independent and Technology agnostic advisory service group.
Also this group helps clients from around the globe to achieve the third stage of Digital Transformation smoothly.
While writing this article I plan to do something funny.
What is that which is something funny for you?
In short I am doing an act of ERP Myth Busters in this article.
Also I am going to debunk some common misconceptions about ERP Systems before you.
So with this introduction let me take you forward in this fun journey.
Before we start our journey, I would like to recommend you to download newly released “2024 Digital Transformation Report” from Third Stage Consultancy Group.
I have given its link at the end of this article in Resources section.
In this case it will be a great pre-work for you while I walk you through these common Myths and misconceptions.
Myth #1 ERP Systems are the only way.
Generally many Business Leaders believe that ERP systems are really the only way to achieve operational efficiency in Digital Transformation solutions.
However what Third Stage Company has seen is a bit different than reality.
In particular they have found an evolution around modern or traditional ERP System.
Basically they have seen solutions that are best of breed in nature.
What does it mean?
It means that those solutions support a specific industry or area of the business.
Third Stage Company has seen the rise of the tier 2 ERP solutions that might not be as big and complex.
But they can be really a great match for a smaller midsize organization.
Also they have seen custom applications and open- Source systems that allow you to modularly build your ERP system what exactly you need.
For example they have seen the rise of no code Enterprise support systems in recent days.
Because they give the operations the ability to deploy modules or applications with the speed of the Business without investing in high cost development services.
While it helps in busting this Myth #1.
However the message is that it is really important to choose the best solution for your organization.
And this really starts with understanding your specific business vision.
As well as using that to build a sophisticated digital strategy.
After that going out and doing an impartial technology agnostic and independent evaluation
I hope that you really understand that a vendor’s job is to sell you software.
However looking through what professional knowledge which you possess, you should have the ability to really choose what is best for you.
Myth #2 ERP Implementation means Big Disruption.
Above all you should realize that ERP Systems in are not always the answer for every single business need.
Because there is a common fear that ERP implementations cause major workflow disruptions.
In reality with the right strategy, this shift can actually be pretty seamless or painless in any organization.
Hence this Myth #2 can easily be busted with a very tight and intentional ERP planning strategy.
In fact this is one of those Myths that actually can be true without effective and strategic planning around ERP implementations.
Moreover this Myth is true for any technology implementation or process change within your business when you do not plan any strategy around ERP implementation.
Generally mitigating any risk of true business disrupt option really starts with that phase zero planning.
Because it helps in ensuring that your implementation strategies are not only assessing your current state as a business.
But it also targets your future State operating model.
You need to do it very sophisticated way.
Also you need to do mapping of the operational side as well as the mapping of roles and responsibilities very carefully.
In fact you should do the people communication planning side in such a way that it ensures that there is no major disruption.
Reason for mistake
So where this Myth #2 often goes wrong?
Or
What makes this Myth #2 actually a reality?
Basically many times organizations will do their due diligence on the technical operational process side.
Moreover they will ensure that their processes are mapped out to match the requirements of the new technology.
Also they will do testing with due diligence to make sure that it actually functionally works.
However what they leave out is the people side of new technology.
And really being intentional and mindful about how the technology is perceived and communicated within your organization.
Therefore you should make sure that you give enough time and budget and resources on the process side as well as on the people side.
While you are planning to do a new ERP implementation.
So that it will not cause disruption within your organization.
Myth #: 3 ERP Systems make Job Obsolete.
In particular this is a very common and Hot Topic within our industry today.
In brief this Myth suggests that ERP or any new emerging Technologies such as AI or Artificial Intelligence will replace human workers.
However the truth is that technology may automate mundane or manual tasks letting employees focus on more strategic roles or initiatives.
But they will not completely replace the need for human resources.
In general with any new technology, you can have things like autonomous systems that utilize sensors to make strategic business decisions.
However without the cleanliness of data and code that go into these systems, they are just what they are called artificial.
They do not have the ability to make human brain decisions that involve what is best for the business.
Also they do not understand goals and objectives.
You need to make sure that there are maintenance checks or project health checks.
So that to make sure that any system that has autonomous or artificial intelligence involved in.
It is actually getting a human brain checking on a regular basis.
These outputs are only going to remain effective for the business if they are aligned with strategic goals through human interaction.
Myth #4: All ERPs are the same.
ERP systems are not a one-size fits-all approach.
What does it mean?
It means that there is a diverse spectrum of Enterprise Resource Planning systems out in the marketplace for different Industries with different business sizes and goals.
Now this Myth goes along with Myth #1 that ERPs are the answer for everything.
That is not the truth.
ERP systems need to match the needs and requirements of the organization in order to be effective.
If you are not seeing what you need in the ERP evaluation process then you need to diversify your vendor selection.
And you need to engage a technology agnostic independent third party partner like Third Stage Company or Sofcon Systems.
That might have the industry or specific requirement experience to get you exactly what your business needs are.
Myth #5: Once Set an ERP System is forever.
Something we see a lot within our industry is “Once an ERP system is installed or implemented then it is set in stone.”
Its meaning is that there cannot be any optimization or changes required once it goes live.
In fact this is not the case specifically anymore.
Because modern ERP systems have evolved.
They have the ability to scale and adapt with changing business needs in order for the business to remain responsive and competitive.
This Myth is especially important to debunk when you are going into the evaluation phase.
Then you have to remember that vendor’s job and agenda is to sell you the new system that they are targeted to sell you.
We see this conversation a lot with on- premise systems versus SaaS or cloud based Solutions many times.
Because SaaS Solutions make the ERP vendors more money.
In this case we see clients pushed into specifically for installation of new ERP system.
When you are told that your legacy system is becoming obsolete.
Or
Your software vendor will no longer support the maintenance of your legacy system.
And you are pushed into a cloud-based system.
Now Cloud Solutions are a great option.
If it fits the needs of the business.
But please note that the needs of the business need to remain the priority.
Modern ERP systems can fit what you need as far as your specific requirements are concerned.
You do not have to change your business processes.
When you do buy an off-the-shelf solution or a vanilla ERP as we call it.
Then there are times when your processes need to adapt.
And there is a compromise you have to do.
But there is no need to completely overhaul your current processes or future State processes.
Modern Trends
In order to meet the requirements of a specific technology there are options out there.
There is a diverse group of options out there.
And once it is said then it does not mean that you do not have the ability to optimize
When we talk about the third stage of an ERP implementation.
Then we talk about post go live situation.
At that time you are really optimizing the use of the technology within your business through user adoption strategies or understanding key KPIs.
Basically when we talk about the third stage of an ERP implementation then we really talk about what post go live looks like.
So when all of your vendor Partners have kind of faded into the background.
Because you have gone live that is when they have sold you the software.
And your SI has helped you implement it.
But now you really need to take ownership of optimizing it.
That does not mean that once the implementation is over after that post go live should not be a priority.
Or
That you cannot optimize your system to continue to meet your business needs.
As we have discussed that there is a diverse reason for that.
Also there is a diverse group of strategies which you can implement into your organization after you actually turn on the utility of the new system.
Myth #6: ERP is Just About Software.
As we know that while software is key for a successful ERP implementation.
Then we also know that it is equally important to keep balance between people and process just as much as it is important to do technology debunking.
However this common Myth is something that is absolutely important when we change the conversation in the industry.
Further I have come to know from Kyler that at Third Stage Company they have a movement to look at technology as more than just technical pieces.
But they see them as living breathing people and processes.
If you are going to implement a new technology within your organization.
Then you need to give ample time to each three of these pronged approach for a successful Digital Transformation strategy.
#1. You need to look at the technical aspect of what your business needs or requirements are concerned.
#2. Also you need to look at the processes against your current and future state to create efficiencies through new technologies.
#3. And finally you need to look at your people as your culture ready for a new technology.
What is the perception around about new technology?
And how will you effectively communicate with your people?
What is in it for me in organization?
Why people should adapt to this new technology?
I do not know how many times Kyler had to sit in executive meetings of Third Stage Company to resolve above queries.
However I know with certainty that it was her job and hence she sat in those meetings.
Also she helped her customers to adapt to this new technology with sincerity.
Take Away
However you should note that it is never going to work if you do not consider the people’s side of the scenario.
If you miss that then your ERP implementation will fail.
In fact there is a lot of data in the industry to prove this aspect.
So when I am making you aware about these Myths.
Then what it means to you to implement an ERP system?
Or
What it means to you to select an ERP system?
You need to ensure that you have the three pillars –
People, Process and Technology in order to be successful in ERP systems implementation.
In brief these three pillars are absolute game changers in any ERP implementation.
But only when they are understood and strategically executed effectively.
So the next time you hear or read a tall tale about an ERP system or ERP implementation.
Then you can easily separate fact from fiction because you have read this article.
I thank you so much for reading my article.
Also I hope you had a little fun with this light-hearted way to look at misconceptions in Digital Transformation
that are important in the industry and causes of this epidemic of ERP failure.
If you do have specific questions about your project please feel free to reach out to me directly and we can have an informal conversation.
You can contact me at pk.saxena@sofcononline.com .
I highly recommend you to download literature from Resources section given below.
Digital Prabhat
Resources:
2024 DIGITAL TRANSFORMATION REPORT:
