{"id":8913,"date":"2014-05-20T08:06:58","date_gmt":"2014-05-20T08:06:58","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/roi-of-erp-part-2-of-a-4-part-series\/"},"modified":"2025-03-19T09:59:23","modified_gmt":"2025-03-19T07:59:23","slug":"roi-of-erp-part-2-of-a-4-part-series","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/applying-and-operating-erp\/roi-of-erp-part-2-of-a-4-part-series\/","title":{"rendered":"ROI of ERP \u2013 Part 2 of a 4 Part Series"},"content":{"rendered":"<p><strong>Before Selecting a System <\/strong><\/p>\n<p>In the early 1980s \u201cexperts\u201d on Japanese management were isolating distinctive practices that seemed to account for Japan\u2019s remarkable economic success. The \u2018<a title=\"Japanese management culture\" href=\"http:\/\/en.wikipedia.org\/wiki\/Japanese_management_culture\" target=\"_blank\" rel=\"noopener noreferrer\">Ringiseido<\/a>\u2019 decision-making practice was one of these. It offers an opportunity for equals to participate in the decisions that the executives will have to take. The purpose was to adhere to the Japanese cultural desire of harmony among people.<\/p>\n<p><!--more--><\/p>\n<p>To maximize ROI, certain aspects of the practice of \u2018ringiseido\u2019 should be applied to the mission-critical steps required to be taken before the process of selecting an appropriate ERP system and supplier begins.<\/p>\n<ol>\n<li>Clear decision-making authority: Who is going to make the final decision on each key issues? \u201cInput welcomed, but the final decision on this issue is X\u2019s.\u201d Doing this quick exercise eliminates a raft of interpersonal problems. It is best done in open discussion with everyone who will be affected, and based on objective criteria.The criteria for the choice of the final decision-maker could be technical skill, experience, or a clear corporate responsibility. \u201cIf we go over budget the FD\u2019s head will roll, so she needs to have the final say on costs.\u201d The key is open conversation and agreement, ringiseido-style.<\/li>\n<li>End user participation: In whatever form works in your context, ensure that the voices of end-users are heard. Really heard. The enthusiastic embrace of the new system will never be achieved without up-front participation. Many a good idea has been rejected only because the recipients of the final product had no input. People have a heightened level of commitment when they have been part of the selection process.<\/li>\n<li>The business processes you require: In 1993 Hammer and Champy wrote the bestseller, \u201c<a title=\"Business Revolution\" href=\"http:\/\/www.amazon.com\/Reengineering-Corporation-Manifesto-Business-Revolution\/dp\/088730687X\" target=\"_blank\" rel=\"noopener noreferrer\">Reengineering the Corporation<\/a>\u201d after watching companies implement technologies to automate processes that were no longer required. Two decades later, companies still make the same mistake, in different but no less serious ways.<\/li>\n<\/ol>\n<p>Before you move to selecting the appropriate ERP, use SYSPRO Process Modeling, to do an end-to-end mapping of your business processes and involve all stake holders \u2013 sponsors, as well as end-users. Do the full exercise; it would be valuable even if you were not thinking of implementing an ERP.<\/p>\n<h2>PREVIOUS: <a href=\"https:\/\/ca.syspro.com\/blog\/planning-for-erp-or-purchasing-erp\/taking-ownership-of-erp-implementations\/\">Taking Ownership of Your ROI<\/a><\/h2>\n<h2>NEXT: <a href=\"https:\/\/ca.syspro.com\/blog\/applying-and-operating-erp\/roi-of-erp-part-3-of-a-4-part-series\/\">Selecting the Right System and Vendor<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Before Selecting a System In the early 1980s \u201cexperts\u201d on Japanese management were isolating distinctive practices that seemed to account for Japan\u2019s remarkable economic success. The \u2018Ringiseido\u2019 decision-making practice was one of these. It offers an opportunity for equals to participate in the decisions that the executives will have to take. The purpose was to &#8230; <a title=\"ROI of ERP \u2013 Part 2 of a 4 Part Series\" class=\"read-more\" href=\"https:\/\/ca.syspro.com\/blog\/applying-and-operating-erp\/roi-of-erp-part-2-of-a-4-part-series\/\" aria-label=\"Read more about ROI of ERP \u2013 Part 2 of a 4 Part Series\">Read more<\/a><\/p>\n","protected":false},"author":133,"featured_media":6091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[8],"tags":[45,30,88],"class_list":["post-8913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-applying-and-operating-erp","tag-business-software","tag-erp-systems","tag-selecting-erp"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - 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