Improving efficiencies through process improvements.

This is 2010 and more and more companies are achieving efficiencies through implementing newer technologies that is making their lives easier and more effective. Technology evolution has started many conversations about the true value of efficiency and long term value chain.

Strategic planning in a company is lot like planning a city. It needs long term vision, short term memory and continuous improvement opportunities. If you plan for continuous improvement keeping your long term vision, you will always find opportunities for improvements in the processes without applying technology. Six Sigma is a great example and has been very successful in creating and managing efficiencies across many verticals.

Many corporations apply technology without proper process evaluation that some times lead to disastrous outcomes. We expect a lot from technology and why won't we? If you spent between $5M-$50M in purchasing an enterprise solution that is suppose to save you money, time and make you and your company more efficient, you will expect the technology to perform.

But there is a slight problem with that scenario. 8 out 10 clients will try to change the scope of work during the implementation phase and that is just a beginning. It happens more often where companies don't go through proper process evaluation and definitions and hope that the new solution will take care of it.

There is a vast difference in "needing" and "wanting". Technology can get your excited and can quickly change your needs to wants. But with process process evaluations, you will always stick to the plan.

If you internally blueprint processes and create "achievable" maps, you can simplify implementation process and manage the project "on time" and "on budget.

Clients who righteously manage their internal processes can define implementation steps better and are a true contributor in the scope of work. They highlight the areas of improvement that they expect the software to perform and they create continuous improvement roadmaps.

I have worked with some really smart customers who manage internal centers of excellence and are motivated to save money by doing their due diligence in creating their requirements and forcing vendors to align their solution strategies with those requirements. If there is a match, great, if not, they find ways to keep improving.

A process map is a lot like a city map, if you can't understand it, how do you expect any one getting around it externally?

Every positive outcome has well defined process maps that shows efficiencies, gaps, areas of improvements, time line and cost involved. It shows where you might add a new technology solution and how much it will cost.

When you assign cost to every process, it becomes very clear how you will justify a purchase and if that purchase has an ROI or a TCO or both.

Technology has changed our lives and the way we think and act. But it has also made us more ineffective in doing our primary functions more effectively. Example: IPhone, an awesome tool with 150,000 applications (functions) that are really not needed. It is all about convenience and "want to have".

Thank you
Regards,
D

Purchasing technology as an enabler.

Technology is a need and more and more corporations are approaching technology as a want. The basic idea of purchasing a new solution or a new tool is to create efficiency, save time and money. There is very little "after-purchase" follow ups. A corporation should always formally complete their due-diligence after they have bought a new solution. That will help them measure, monitor and make decision on the objective of purchasing the new solution in the first place.

Technology in itself is an enabler. It enables efficiency, effectiveness, integration, corporate visibility, and accountability. Keeping the objective of the need and managing the technology purchase is very important. Two most important question - Why are you purchasing and for whom?

It is a cycle - Plan/Define (Requirements/Cost) - Align/Select (Requirements/Cost) - Approve/Purchase (Required Solution)  - Track/Monitor ( Benefits/Gaps) - Define (..........

The process itself:

Every corporation has different purchasing needs, whether it is a global project, departmental project, a process project or a local project. The players are different, their needs are different, their objectives are different and their perspective of different technologies are different. 

Managing this vast pool of needs is not only challenging but very competitive. Everyone has the best solution and every one is the leader in their space.
The most important aspect of a smart purchase of any technology solution is to go through an extensive process of building requirements. Identify key process areas , their process champions and address those change with "desired" outcomes and create a "to-be" strategy and a "what-if" strategy. The more information one gathers the more knowledgeable one gets.

As Albert Einstein once quoted - Everything should be made as simple as possible but not bit simpler.


An average RFP/RFI process takes anywhere between 1-6 months  or some times more that includes the decision making time and size of the project. This is one big area of process improvement that most corporations don't address. Today's process of purchasing is not only time consuming but is extensive. By the time a company ends up making a decision on a vendor, they had lost track of their basic objective of the project and then they hardly ever plan for the "after-purchase" process.

Every process can be made simple. Every process should have an owner and every owner should have a process objective and targets. If all corporations can start building internal process maps and charts, the owners can visualize the effectiveness, the gaps, the flaws and can make intelligent judgment on next steps.

In Healthcare, an average hospital today owns anywhere between "20-40" disparate systems or separate IT Systems to address their needs. - my basic two questions - why are you purchasing and for whom?...How does it affects - "Patient Care"??....or does it??

In some manufacturing plants technology is driving robotics and artificial intelligence in producing goods. - how does it affects Quality and delivery?....Still why so much - "Recalls"?


Not sure if it is the industry or the players but this is not solving their problems. Technology is a need and it enables us to be effective and efficient. I think vendors should bring change; the way customers purchase technology today.

Every vendor has extensive websites that talks about their products, solutions, partners, clients but I have never seen any one putting a link where one can take a buyer through a smart purchasing process using automated solution mapping techniques.

All vendors should have a formal requirement gathering document that aligns directly with their core competencies. It will give buyers smart information and will enable them to purchase technology is a cost effective manner.

Once the purchase has been made, the customer should be able to run their "after-purchase" follow up process and start tracking and monitoring the benefits.

Hope this information helps and generates some good ideas.

Thank you for reading and enjoy your day.
Kind Regards,
D