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News Release from: R. Michael Donovan and Co | Subject: Enterprise and supply chain systems
Edited by the Manufacturingtalk Editorial
Team on 19 May 2005
Software alone gives no strategic
advantage
Manufacturers pursuing performance improvement through enterprise and supply chain systems are learning that software alone is almost never the solution, says a management consultancy.
Software alone does not deliver strategic advantage Manufacturers pursuing performance improvement through enterprise and supply chain systems are learning that software alone is almost never the solution Manufacturers pursuing performance improvement through the implementation of enterprise systems and supply chain systems are learning an important lesson: New information systems and software alone are almost never the solution
This article was originally published on Manufacturingtalk on 10 May 2005 at 8.00am (UK)
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To the contrary, many companies have tried to solve performance deficiencies by using information technology and have been greatly disappointed in the results.
"These companies rarely, if ever, get the 'quick fix' they were hoping for," according to management consultant Mike Donovan of R Michael Donovan and Co "More often than not, they find themselves saddled with expensive new information technology that not only does not achieve the results intended but actually creates new problems".
"This can lower company performance below levels that existed before new information system applications were introduced into the business." This is not to imply that information systems are not important tools for performance improvement.
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"The point is," Donovan adds, "systems are tools and by themselves they do not change the way a company performs".
"Properly implemented, however, in conjunction with process changes designed to take advantage of what these systems have to offer, new systems can be the key to a quantum leap in performance." Process changes make the difference, not the software.
Modern-day systems are built around industry best practices and are designed to support state-of-the-art business processes and techniques.
A company that wants to move to industry-leading practices really needs the proper information systems to support those new practices - after all is said and done, it is information that drives these leading-edge businesses.
Expecting the system to deliver the results is a serious mistake.
Without recognizing this fact, a company might invest in a new system only to find they are paying the price, not only in their systems investment, but also in cumbersome data collection and entry and awkward procedures, but without gaining the benefits.
When the system and its requirements are embedded in new processes, they work together for improved results.
"Bottom line," says Donovan, "Performance improvement comes down to process improvement".
"Process improvement can be enabled by the functionality built into information systems".
"A software system upgrade may be a part of a major performance improvement project (but not always)".
"You have to realise that the system is an enabler, not the answer to improved business processes." * About R Michael Donovan and Co - R Michael Donovan and Co is an international management consulting and education firm that provides manufacturers with business performance improvement services on a focused, enterprise-wide, or entire supply chain basis.
For over thirty years R Michael Donovan has a consistent record of providing manufacturing and distribution companies with highly competent professional assistance to help management improve business performance.
The firm has developed highly effective methodologies for: Supply Chain Management, Lean Manufacturing, Lean Supply Chain Management, Business Process Redesign, Strategic Planning, ERP Systems, Cycle Time Reduction, Customer Service Improvement, Forecasting, Inventory Reduction, Profit Improvement, Flow Manufacturing, among others.
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