I agree with Brian that these steps are the ones you will need to take to get a fully defined picture of your business. But how do you see what the requirements are for each area? Where do you begin?

These are the questions I often hear from clients when we help them define their requirements and field out the operational gaps. I have to say it is easier said than done but the benefits are immense. To not do it, is like leaving turining up the heat and not closing the windows or sealing the leaks. To start, a company should list out the problems and goals they have as a company and the ones in each area. Then map out the current processes and compare them against the problems. This will help you define new processes that will correct the issues and meet the goals of the company. To define the requirements now you need to list out the detailed specifics around these processes and operations that you need to be able to have functionality for.

Use inventory costing as an example. It isn't enough to say I need an inventory module that I can track cost and quantities with. Inventory can be costed many different ways and tracked in a variety of ways too. It is best to list out the specifics of how you do it then put together a questionaire you can use to ask questions to the vendors on the options their software provides.

I hope this helps.

Theresa Kramarz
www.tlcgroupinc.com
www.discretemanufacturingerp.com

Brian Sheets

CEO, Skyron Systems Inc.

Posted on Feb. 15, 2012

Catherine:
While gap can refer to the delta between planned vs. actual, it could also be used to describe the delta between the mandates issued by the board/senior management vs. the firm’s existing processes which may be inadequate to support the mandates.

It is not uncommon for companies to grow in revenue while the processes by which they operate fail to keep pace. Therefore, I would offer you the following protocol to consider.

First, ensure the day-to-day business processes are defined in such a manner so as to support the strategic plans of the board/senior management. These might include sales, HR, and accounting practices.

Second, ensure the operational processes (i.e. manufacturing, engineering, etc.) are optimized for achieving the strategic plans of the board/senior management. These might include supply chain requirements, lean processes, reliability, quality, and performance testing.

Third, look at cross-functional applications and consider their importance in defining the above processes. For example, how do accounting practices have to change in order to achieve supply chain requirements? How do design engineering requirements need to change in order to achieve design-for-manufacturability and lead-time targets?

By defining the optimal way to conduct business on a day-to-day basis (within and between functional areas), the natural gaps in your organizational will emerge as the epiphany “We can’t get there from here”. If this happens, you are then free to define/design the processes that will allow you to get from Point A to Point B.

Think of the exercise as a picture puzzle. Define the picture you want to emerge (how would you like the company to operate), and then define the pieces that will interlock in such a manner so as to result in the desired picture (what processes need to be kept, re-defined, or designed to achieve the above).

Bill Wood

President, R3Now Consulting

Posted on Feb. 16, 2012

This is two very, very different questions. I would suggest studying up on TOC (Theory of Constraints) to understand and address operational gaps. Most process chains only every have one or two constraints at any one time. And as those are addressed the constraint can change. However, whether you use TOC methods, TQM, or some other buzzword related operational enhancement method, there are fairly mature ways to address this. So addressing operational gaps is a little different than understanding key business process requirements.

For me personally the key business process requirements portion of the question does not have enough context. The first part of the question on operations is relatively simpler because it deals with one leg of a three legged business stool--, it deals with operations, but doesn't really address innovation or customer focus. That operational focus has been where technology has been applied for years.

Today's environment is changing rapidly. Both global competition and changing markets are radically altering that dynamic so that companies today are just beginning to scratch the surface on innovation and customer focus.

You can read more about these topics here:

Will Next Generation IT Finally Transform Business
http://www.r3now.com/will-next-generation-it-finally-transform-business

And if you're really interested in a fairly thorough and comprehensive overview of these topics, and where the marketplace is going in the next 10 years, check this post out:

ERP vs. ERP II vs. ERP III Future Enterprise Applications
http://www.r3now.com/erp-vs-erp-ii-vs-erp-iii-future-enterprise-applications