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 The People, Process, Technology Puzzle
by Sandra Noble, President
Noble & Associates Consulting,
Inc.
Have you heard the buzz words: People, Process,
and Technology? To reach business goals, each must be addressed and each
must be appropriate. So, what does that mean? And, how do the puzzle
pieces fit together?
This thing called Technology
Technology consists of hardware and software. The wrong technology
decision has the boomerang effect of adding stress to the process and
people components. Large companies are able to throw resources, usually
money, at the problem to make things work. Smaller companies don’t often
have that luxury, so they have to endure the pain. The smaller the
company, the more risk you take on by not making an appropriate
selection.
Do you have the right cost effective hardware?
Example: Radio Frequency Identification (RFID) is all the rage and in
some cases may be required or mandated by others in your supply chain.
But in may cases a bar code solution that you may already have could
suffice.
Is your software appropriate for your organization or company?
Example: You may have chosen the name brand software solution that
covers all the basic functions and works well for most companies. But
perhaps you’re in a specialized industry where a more targeted solution
would be most appropriate.
A look at Process
Often business look to technology to solve a process problem. Sometimes
this works. Technology companies try to incorporate best practice
processes into their products. Modifying your processes to work with the
technology can bring about improvement of your processes.
On the other side of the coin, a thorough understanding of your current
processes can help you make better technology decisions. Surely there is
wisdom in lots of your processes. But like anything that has been
modified and enhanced over time, it probably is less efficient than it
would have been it the current / future state had been planned for in
the beginning.
Other pieces to the puzzle are legal and regulatory considerations.
Forward thinking companies will want to proactively monitor and address
pertinent issues even before legal mandates are imposed.
-
Sarbanes Oxley requires that
processes and procedures be in place in order to demonstrate
compliance and oversight by top level executive. Documentation and
technology are keys to success in this area. Companies that are not
publicly traded would be wise to prepare for similar requirements in the
future.
-
As a result of natural disasters last
year, business continuity planning legislation may be on the
horizon.
-
Concerns about bioterrorism and
disease epidemics underscore the need for lot and batch traceability
-
Global electronic companies must
consider European Union (EU) compliance issues born out of
environmental concerns:
- Effective July 1,
2006, the Reduction of Hazardous Waste (RoHS) directive
prohibits the use of certain chemicals in electronic products
- The Waste Electrical
and Electronic Equipment (WEEE) directive requires companies
selling electronics in the EU to recycle and to absorb the cost
for so doing. Companies must be in WEEE compliance by January 1,
2007.
First question is: Are we legal and in
compliance? Then, Are the corporate strategy, mission and priorities
clearly articulated and understood by all? These answers drive your
organizational structure, your products, your processes and your
technology.
People are Pivotal
You have the technology and you have the processes, but nothing happens
unless they are utilized by people. There are lots of debates about the
attainability of a return on investment for an ERP system. Reasons that
ROI may seem elusive are:
-
Mismatch between process and
technology
-
The wrong technology solution was
selected, for example:
-
doesn’t match your corporate
goals or your industry
-
cannot handle compliance
requirements
-
Inadequate documentation
-
People have not been adequately
trained to take advantage of the technology
-
Technology was not set up and/or
implemented correctly for your business
-
Lack of collaboration within the
organization and /or throughout the supply chain.
People are expensive but crucial
resources. The purpose of process and technology are to help your people
add value to your organization.
Get IT Right!
What is the Total Cost of Ownership (TCO)? The obvious project costs are
for hardware, software, systems integration services, data conversion.
But the TCO concept encourages a consideration of all direct and
indirect costs, incurred throughout the life cycle of an asset or
technology, including acquisition, deployment, operation, support and
retirement.
Rising demands of regulatory compliance coupled with the relentless
pursuit of profitability require corporations to find innovative ways to
increasingly add value to the business without adding additional cost.
Many times businesses don’t want to take the time to properly analyze
their requirements, goals and objectives before they embark on new
projects. But you can’t afford not to take the time. Either you invest
the money up front to get the right solutions or you pay later for
maintenance costs, ineffective operations, poor employee morale and
inability to make effective decisions.
Addressing all these pieces of the people, process, and technology
puzzle will reveal the hidden potential in your organization. Having
these pieces in place provides a panoramic view which empowers you to
execute a strategy for success. Shouldn’t your goal be to maximize and
accelerate ROI, and minimize TCO?
-------------------------------------------------------------------------------------------------------------------------
Sandra Noble MBA, CPIM, DCFS,
CDP, is president of
Noble & Associates Consulting which specializes in I.T. Needs /
Strategy Assessments, unbiased Software Selection assistance, and curing
Post Implementation Distress™. We also have full life cycle
implementation expertise in SAP, Oracle and other enterprise-wide
software solutions.
Reducing the
STRESS
of Software
Implementations Worldwide!
Visit the author's website for more information on the
Noble Advantage.
Noble Finances, a
division of Noble & Associates Consulting, provides accounts receivable
financing and equipment & software leasing. Turn your accounts
receivable into immediate CA$H.
If your bank says No, then Yes, you need to explore other alternatives.
Get a free report on
Business Financing Options, by clicking
http://GetCashFromReceivables.com/
Copyright © 2006,
Noble & Associates Consulting, Inc.
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