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Over the past 12-18 months, we have experienced an enormous investment boom in the ERP area. Not since the late 1990s have we seen as many requests for consultancy support as right now. Added to this is the fact that the majority of all customers now talk more about "when" a project should be carried out rather than "if" it should be carried out. There is a very strong desire to "take the next step" in their development, often under the somewhat general heading of "digitalisation".
One can speculate on what lies behind this great demand, but much probably goes back to having passed a "tipping point" regarding companies' awareness that it is not possible to patch and mend indefinitely. And many organisations (not least in manufacturing industry) have patched and mended far too long. Although Sweden can boast an industry with leading-edge products, people are often both surprised and alarmed when they see how neglected investment in modern technology has been.
Although it is positive to have an increased understanding of the need for digitalisation, it is surprisingly often the case that the customer finds it difficult to define the target vision for their planned digitalisation. They like to talk about "modern systems", "modern architecture" and "efficient processes" but have difficulty further defining what is included in these concepts. And thus the fundamental and driving factor for why a digitalisation project should be carried out is also lacking. Even though much indicates that it is wise to invest in new technology and "modern" new systems, an investment must be justifiable financially. And it must be possible to concretise where, when and how the benefits arise. Otherwise, it is not possible to plan and ensure the realisation of the effects expected to arise.
Instead of blindly jumping into a procurement project to switch to something "more modern", an organisation should first gain insight into "where we stand today in relation to other companies" and "what is reasonable to achieve in improvements" with a completed investment. This can take the form of a strategy, feasibility study or benefits analysis. Regardless of the headline, it is about some form of "health check" of the current state. And this should include both the IT environment and business processes. Usually, they are closely linked.
But it is also about measuring the customer's maturity and digital capability. Having digital capability essentially includes more than just access to modern technology and infrastructure. It also assumes that the customer has an established development model where IT and processes go hand in hand and where there is a clear and declared organisation responsible for developing the business processes. And if the digital capability is lacking or deficient, the investment will not deliver the expected effects in the longer term.
For those who are stuck and finding it difficult to find the way forward regarding the development of their IT landscape, their ERP systems and their processes, it is well worth conducting a health check. With facts and clarity about the current state and potential ahead, it becomes substantially easier to develop alternatives and scenarios for an improved system environment. It also gives the organisation an opportunity to create a shared view of the current state and the prerequisites required to be able to develop and improve.
