Enterprise IT and the competitive advantage mantra!!

I came across an interesting article at HBR that so closely relates to the work that I have been doing. The article details the competitive advantage several organizations have gained by investing in technology especially in Enterprise Software. It was insightful to read the compelling observation in article since I have been working as a consultant in ERP.

I always believed that client get a significant advantage by implementing ERP. Otherwise what is the point in making such huge investments. However, most of the line managers that I used to question about the software's impact on the business would delve into the day to day issues and challenges in the product rather than thinking from a holistic purpose. For example, I asked a manager who looks after Learning Management of his Organization that what he feels about PeopleSoft’s impact on his business. Rather than thinking that he is getting a system that provides a single platform for the whole organization he was keener on discussing smaller issues and granular functionalities of the system. Reading the article and impact of Enterprise IT today I realized that it is the senior management who value ERP more since it provides single platform to manage the organizational data, any change in business processes, and help business surge in new directions.

Further, I was quite intrigued by the example of CVS. The company changed its client handling process by bringing the background check to front end. Through this change, in a single shot CVS made the changes across the organization primarily because it has an ERP Software. Further dependence on technology also meant that CVS reap organization wise change benefits rather than localized benefits that are generally people dependent. While this example was impressive, my experience with field managers has been little different unless I have started my interaction with Directors and VP's. As I worked in the national roll-out of a Enterprise Software, I realized that most of the line and localized managers are concerned about how the system will impact the functionality at their own location. Also, they were keen to get the product changed according to their whims and fancies. On the other hand, the Directors and VPs I have interacted are more concerned about keeping the software uniform & holistic. Classic example of difference between the Corporate and Individual Functions.

Coming back to the article, some of the advantages of the enterprise software are: covering a wide span, immediate results, precise rather than general guidelines, consistent, and enforces change. The article has helped me put my area of work in right perspective. Further I have learnt how technology can impact the business through the CVS example. Perhaps someday as an associate on business side, I will be able to gel with technology department in better manner.