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WHITE PAPERThe CEO and ERP SolutionsWWW.SYSPRO.COMWWW.SYSPRO.COM
WHITE PAPERThe CEO and ERP SolutionsContentsWhy ERP?2When Current Technology is NOT Doing the Job:The CEO’s 10 Reasons to Consider a New ERP Solution3What Role should CEOs Play in ERP Selection/Replacement?3The ERP Trajectory to Success – CEO’s Responsibilities4About SYSPRO5WWW.SYSPRO.COMV01 2015 SYSPRO. All Rights Reserved. All trademarks are recognized.1
WHITE PAPERThe CEO and ERP Solutions Cont.Technology – specifically the correct evaluation, selection and deployment of it – can be a game-changer for Manufacturersand Distribution businesses of all sizes. Because the role of technology is tied tightly to the success or failure of theirbusinesses, getting it right ultimately becomes a top priority for CEOs. This is particularly true for enterprise resourceplanning (ERP) software selection and deployment, since it gives CEOs the unique ability to build on their past successes,modify those things that have become a net drag, and create a path forward for future opportunity.Why ERP?The fundamental importance of having an ERP systemis to use software as a tool to take complexity out ofdaily operations. Company management often has aninherent inability to make the correct business decisionswithout having the right toolsets to do so. What an ERPsystem does is take huge volumes of data and makesthat data into useable information to drive the companyto operational efficiency. ERP can provide flexibilityand enable a single view of the truth across single andmultiple locations whether they be manufacturing facilities,distribution centers, warehousing, sales offices locally orglobally. ERP also greatly reduces the time in informeddecision-making. From a CEO’s mindset, an ERP systemhas to be a backbone tool to house all information that willenable the ability to ensure cost-effective production, ontime delivery and exceeding customer expectations.ERP encompasses all business processes and functions,and therefore both its breadth and implications are farreaching. A comprehensive integrated ERP solutionmakes it possible for the CEO of a manufacturing ordistribution company to more easily gain visibility andcontrol over multiple facets of his or her organization.While sophisticated and complex at its foundation, theultimate usability and usefulness of an ERP solution variesgreatly from vendor to vendor. A wide variety of factors candrive value and return on investment (ROI) more quickly,beginning with a single architectural foundation versussolutions built from multiple different source systems.WWW.SYSPRO.COMV01 2015 SYSPRO. All Rights Reserved. All trademarks are recognized.For many CEOs, the right ERP solution can serve as amulti-faceted vehicle to realize their vision for the companyand drive it forward. For others who have not movedbeyond basic technology, or who have selected the wrongERP partner in the past, the path forward can be bothcumbersome and expensive. For example, the solutioncan fall short of expectations, not be readily adopted bycritical workers, or require technical patch after patch towork effectively within a given environment. It’s no wonderthat some CEOs defer involvement in selecting a newERP solution to their technical staff, but as this paper willdemonstrate, there are many good reasons why CEOsshould be involved in this critical decision at the outset.Because ultimately, it is the CEO that stands the most togain from the success of ERP deployment.Here are just a few of the benefits that accrue from havingthe ERP solution that is right for your business:n End-to-End Company Visibility of All KeyFundamentals – Financials, inventory, operations,sourcing/supplies, service/support obligations andstatuses, etc.n Decision-Making Support – The ability to acton all of this critical information quickly and withfavorable profit and cost ramifications.n Customer/Market Responsiveness – Trends,issues and/or sales or service opportunities arequickly identified and made actionable.n Business Process Automation – Removingmanual processes and inserting standardizedalerts on key performance indicators can be thedifference between running in the black or the red.n Auditable Compliance with Government/Industry/Financial/Customer/Partner Regulations – This canrange from legal regulatory reporting, to productrecalls, to adherence, to contract terms.2
WHITE PAPERThe CEO and ERP Solutions Cont.When Current Technology is NOT Doing theJob: The CEO’s 10 Reasons to Consider aNew ERP SolutionHave any of these elements, below, occurred withinyour business over the past 6-12 months? And has yourcurrent technology solution been able to keep up? If not,you are likely ready to upgrade to your first ERP solution,or perhaps consider a better ERP technology partner:1. Product Adjustments – You’ve expanded beyondyour original product line – or added significant newfeatures/capabilities, any one of which now requiresbetter tracking/monitoring/activities;2. Management Innovation – You’ve had a changein ownership or management and now have someexciting new ideas for improving operations, service orcapabilities;3. Channel Change – Your distribution channel haschanged or expanded (or you wish to expand) eitherby target audience type or geographic market;4. Supply Chain Adjustments – Your current suppliersand/or partners are too costly based on otheralternatives – or you would like to have the dataand analysis capabilities to compare/evaluate otheroptions;5. New Hires – Your employee base has grown orcontracted, requiring accounting and payrolladjustments, plus user changes;6. Regulatory Change – Your industry has new/changing regulations and/or you need additional traceor audit capabilities;7. M&A – You’ve undergone a merger or are consideringone;8. Facility Adjustments – You’ve outgrown (or need todownsize from) your current facilities; this may involveadding or consolidating plants/facilities – scalability upor down is a priority;9. P&L – Your margins are shrinking, either based ongrowth or industry/business change, and businessprocess automation is critical;10.Competitive Response – Your competitors areoutpacing you, or you want to accelerate youroperations to change the game or widen the gap.WWW.SYSPRO.COMV01 2015 SYSPRO. All Rights Reserved. All trademarks are recognized.What Role should CEOs Play in ERPSelection/Replacement?Selecting the right ERP solution and deploying it with aminimum of organizational stress should be a priority fora CEO of any size business. This does not mean that thisprocess should replace a CEO’s routine or responsibilities;it means leading the organization to embrace a commitmentto change systems and a commitment to doing thingsdifferently. Experienced CEOs know that this is no smallfeat and that leading this culture of change starts at thetop.Another critical role of the CEO is to ensure that his orher technology selection team recognizes the importanceof selecting an ERP vendor that has deep, provenexperience and a track record of success in YOUR sizecompany and in YOUR industry. ERP giants like SAP andOracle and their tier 1 products have large install basesof multi-billion-dollar “tier one” customers. They would liketo convince the mid-market that this knowledge is easilytransferable down market – but it isn’t – primarily for thesethree reasons:n Financial Considerations – Smaller companiescan’t afford to make an ERP selection mistake anda do-over. Error-ridden, delayed deployment cyclescan kill ALL the profits of a mid-sized business;n Mid-Market Values/Considerations – Prioritiesand choices made by CEOs differ based onbusiness size and other factors. Small choicescan be pivotal to mid-sized organizations and canmake a faster difference competitively;n Service Partner Considerations – There isnothing more frustrating to a CEO than a largevendor that is inflexible, difficult to reach and/orwork with after the purchase. It is not an optionfor a mid-sized company to have, for example, anorder entry or inventory controls system “down” foreven a few hours.Often times, marketing hype can overshadow the reality ofa vendor’s offering or experience. For example, selectingan emerging ERP cloud (only) vendor, many of whichhave nascent R&D and marketing funding, may oftendeliver comparatively limited experience in serving themanufacturing and distribution community. Having an ERPvendor that can offer both cloud and on-premise optionsensures flexibility and resilience that has stood the test oftime and, therefore, is a safer, more pragmatic choice formid-sized manufacturing and distribution organizations.3
WHITE PAPERThe CEO and ERP Solutions Cont.The success of an ERP deployment hinges on manyfactors, but starts with the CEO’s vision. The type of CEOleadership needed for ERP selection, implementation and‘go live’ launch is a function of quality time, not quantitytime. It also is an exercise in organizational leadershipconvincing both line and staff employees of the importanceof adhering to a proven set of deployment and trainingactivities.The ERP Trajectory to Success – CEO’s ResponsibilitiesTaking your manufacturing or distribution organization to the next level of growth requires a strong, integrated technologyfoundation, which includes a well-matched ERP solution from a trusted vendor. The CEO plays an important role,including the conveyance of a clear vision, buy-in from critical stakeholders, a sense of urgency/commitment to followproven processes and leadership in the cultural change that accompanies successful use of a new ERP solution.SelectionnnCommunicate vision,ERP priorities &select team membersGain buy-inDeploymentnnnProvide adequatefinancial and peopleresourcesClearly communicateProject importancennWWW.SYSPRO.COMV01 2015 SYSPRO. All Rights Reserved. All trademarks are recognized.Delegate dailyactivities but reviewactivity tracking,troubleshootprocessesRemove barriersLaunchnEnsure cultural andprocess changeoccurs to leveragenew system benefits4
WHITE PAPERSYSPRO a Partneryou can TrustAbout SYSPROSYSPRO software is an award-winning, best-of-breed Enterprise Resource Planning (ERP) software solution for costeffective on-premise and cloud-based utilization. Industry analysts rank SYSPRO software among the finest, bestin-class enterprise resource planning solutions in the world. SYSPRO software’s powerful features, simplicity of use,scalability, information visibility, analytic/reporting capabilities, business process and rapid deployment methodologyare unmatched in its sector.SYSPRO, formed in 1978, has earned the trust of thousands of companies globally. SYSPRO’s ability to grow with itscustomers and its adherence to developing technology based on the needs of customers is why SYSPRO enjoys oneof the highest customer retention rates in the industry.Africa & the Middle EastUSA & AmericasUK & EuropeAsia PacificSYSPRO AfricaBlock ASunninghill Place9 Simba RoadSunninghillJohannesburg2191South AfricaTel: 27 (0) 11 461 1000Email: info@za.syspro.comSYSPRO EuropeBaltimore House50 Kansas AvenueSalford QuaysManchesterUnited KingdomM50 2GLTel: 44 161 876 4498Email: info@eu.syspro.comSYSPRO USA and Americas959 South Coast Drive, Suite100Costa MesaCalifornia92626USATel: 1 (714) 437 1000Toll free: 1 800 369 8649Email: info@us.syspro.comSYSPRO OceaniaSuite 1102, Level 11201 Miller StreetNorth Sydney NSW 2060AustraliaTel: 61 (2) 9870 5555Toll free: 1 300 882 311Email: info@au.syspro.comWWW.SYSPRO.COMV01 2015 SYSPRO. All Rights Reserved. All trademarks are recognized.CanadaSYSPRO Canada4400 Dominion StreetSuite 215Burnaby (Vancouver)British ColumbiaCanadaV5G 4G3Tel: 1 (604) 451 8889Toll free: 1 888 259 6666Email: info@ca.syspro.comSYSPRO Asia8 Eu Tong Sen Street#19-91 The CentralSingapore059818Tel: 65 6256 1921E-mail: info@sg.syspro.com5
4400 Dominion Street Suite 215 Burnaby (Vancouver) British Columbia Canada V5G 4G3 Tel: 1 (604) 451 8889 Toll free: 1 888 259 6666 Email: info@ca.syspro.com USA & Americas SYSPRO USA and Americas 959 South Coast Drive, Suite 100 Costa Mesa California 92626 USA Tel: 1 (714) 437 1000 Toll free: 1 800 369 8649 Email: info@us.syspro.com UK & Europe
