Background & Current Scenario
- Automation of business enterprises is not a choice and every enterprise has realized that this is a survival imperative.
- Once the automation decision is taken there is a misconception and wrong expectation that the technology will run the business.
- For technologists, understanding business is a challenge and for business managers what the technology jargons ultimately deliver to business is never clear.
- Every automation project commences, continues and stops (seldom ends) with these confusions and gaps.
Valgen’s differentiating approach
Valgen is different from a typical IT company delivering ERP solutions. While the general trend is to deliver “technology solutions to business”, Valgen believes in and delivers “business solutions leveraging technology”.
This approach assures value generation and is well appreciated by its clients. To quote the Head of Information Management division of a two billion $ Automobile company:
“I find that Valgen’s team has a good combination of high level domain expertise and process orientation. They also use this effectively in delivering the technology solutions”
ERP - the mother
- ERP is the mother of automation with siblings like CRM, SCM, PLM etc.
- Every enterprise wants to be ERP enabled with different levels of understanding and expectations about ERP
- Failure stories of ERP continue – both reported and unreported.
Why such gap & failures?
Fundamental reason for such gap & failure is the mismatch between the technologists (not the technology) and the business managers in terms of understanding as well as expectations about technology solutions or products and the business needs & processes.
Unless the business processes are thoroughly mapped, analyzed and designed as part of ERP exercise, the gaps & failures will continue to exist.
Valgen’s strategic consulting practice has expertise and experience in business process mapping, analysis and design.
Valgen has carried out / is presently carrying out following assignments, to name a few, in this practice area:
Case Studies - in brief:
- For a leading, publicly listed company, in property development and construction industry, with a turnover of about $ 150 million:
The management wanted to implement an ERP solution. With a number of products available in the market, making a choice was difficult. They engaged Valgen to study and advise them the right product and also IT road map taking into account their aggressive growth plans. Valgen did a study of their processes, identified all the core processes. With this analysis, five products were evaluated as to the coverage of their functionality and features a via the client’s requirement. Based on Valgen’s report a product was selected and the implementation is on. The client has now engaged Valgen to do the complete process mapping, creation of process manual as well as to do the project management for the ERP implementation.
- For a Client in automobile ancillary industry, with a turnover of $100 million:
The company is in operation for more than four decades which resulted in a deep rooted, traditional “SILO” type organization without a process based approach. The management wanted a through re-definition of processes as a pre - ERP exercise. Valgen did a study of their ‘as is’ processes, mapped the same, analyzed and redesigned with a “process cycle” approach. ‘To be’ processes were documented as process flow charts using EPC technique, which formed the basis for their SAP implementation. Later on when they selected an implementation vendor for SAP, Valgen was their preference.
- Post ERP Process alignment in a manufacturing company:
In one of the manufacturing companies, the finance function was divided into two, one dealing with plant transactions and another relating to sales & marketing, though they operated from a single office location. In pre ERP scenario the division of Finance into two made sense for better control. But when the same organizational divisions continued post ERP, it resulted in chaos and lot of non value adding activities. We did a thorough process mapping up to activity level, using D2D technique, after which the entire finance processes were re aligned and integrated into a single finance department (of course with enhanced control mechanisms- thanks to ERP). And the result was reduction in manpower of the department by 50%. Based on the success of this they engaged us to do a similar exercise for their Production and Material Management functions also.
Business IT Alignment Program
Business-IT alignment is a dynamic state in which a business organization is able to use information technology (IT) effectively to achieve business objectives - typically improved financial performance or marketplace competitiveness.
Alignment is the capacity to demonstrate a positive relationship between information technologies and the accepted financial measures of performance.
Ultimately, value must come not just from the IT tools that are selected, but also in the way that they are used in the organization
Valgen has a clearly defined consulting service for alignment of Business & IT in order to strategically propel an organisation to reach its business goals through technology. We normally recommend a 3 year roadmap in line with the business goals.
- AS IS study of the current IT situation in tandem with the Business Goals & objectives
- Identification of opportunities for remedial action
- Discussion with Key stakeholders on the readiness for implementation of the proposed remedial action
- Implementation of the Improvements
- Monitoring & feedback
- Report to the Management on the results through various Dashboards