Dr. Sita’s premise in this blog post is highlighted about half-way down the article, “The drivers for ERP are STEPS toward ROI. Think of ERP as eliminating obstacles toward ROI.”
He has a good concept–I suppose–implement ERP (without identifying proper ROI), then you’ll remove the barriers to ROI and you will get ROI.
Sorry, but it can’t work that way. ROI must be in mind from the beginning. Dr. E. Goldratt (developer of Theory of Constraints, and a Ph.D. in Physics himself), says, “Technology can only bring business benefit if it removes a limitation.”
This is the key to ERP effectiveness: identify the (relatively few) limitations that are going to be removed by implementing the system, then focus on implementing the system and removing them with a single focus.
At the end of the day, if you remove limitations, you will get ROI.
BUT you would have been able to see and forecast the ROI from the beginning.
If you want to know how, call me. 901-452-4585 x 118
Let’s talk.
Business Drivers for ERP – Come along for the ride! | The Business Management Blog