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Tuesday, May 14, 2013

The right sequence: Process, Organization and then, Technology.


It is normal to consider that one way of making changes to a better level of operation in the organization is through the implementation of a new technology (i.e. a new ERP or information system). One of the paradigms behind that is that the "ERP brings the best practice". Although this statement is partially true, this road has driven to more problems than solutions. With the high investment in technology the companies make, it is recommendable to take a second look to the sequence.

The main subject is that we are humans (and should be treated like that...), and there are some steps to be fullfilled to achieve the change required. In this article, we consider the definition on each element as follows (I´m assuming that the Strategy is clear for all cases):

- Process: changes in activities, way of doing the work, techniques, methodologies, KPIs.
- Organization: changes in roles, responsibilities, objectives, targets, job title, job description, organization charts.
- Technology: changes in systems, new technologies, equipments.

Let´s take a look to the combinations and see the possible outcomes (I do not pretend to be exhaustive...). Ideally, you should do all changes at the same time, but depending on the degree of the change, the organization may or may not absorb it completely. Also, the "Solution designer" may have a clear picture about the vision of all elements working together and not to be completely sequential. It means that if you are designing process supported by an ERP, you have to consider the ERP restrictions from the very beginning.







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