The ERP Conundrum
Client Situation: A new CEO at one of our Oil and Gas clients arrived and asked for information the organization was unable to provide. The staff blamed the current ERP systems for their information woes. Following that, the IT organization developed a plan to migrate to SAP or Oracle with a price tag of around ten million dollars. The CEO wanted a better answer.
Our Response: We were hired by the CFO to take a look at their current systems and determine what could be done to improve information flow. We found that 80% of the information issues were a result of incomplete work and lack of process definition to capture the right information at the right time. The systems were not the problem, the use of the systems was the problem. Our team recommended a plan to improve processes and implement new reporting capabilities costing less than 10% of what new systems would have cost.
Result: The client implemented the recommendations and avoided a costly systems project cutting their costs significantly. We helped the client team build better process standards and better reports to capture information. In addition, the client was able to streamline certain business processes and reduce administrative costs from natural attrition.
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