In our March 31, 2016 post we discussed how the tool set known as Six Sigma can help firms save a lot of money by enabling continuous improvement throughout their production (and other) processes. We noted then that by utilizing Six Sigma's tools to reengineer your business processes to the highest standard (of lowest defects) you can then let those processes drive your ERP implementation. In other words, you let your business drive your ERP software, rather than the other way around.
Six Sigma supports a broader business transformation beyond ERP software. Notes Kimberling, "The most successful ERP software initiatives are those that are managed more as business transformations rather than technology initiatives." By beginning an ERP implementation with clearly defined and well-designed business processes – a hallmark of Six Sigma initiatives – you allow your business to drive your ERP software implementation.
The process improvements and the 'leaning out' that come as the direct benefits of Six Sigma (as defined and discussed in our earlier post here) are the very same thinking companies need to apply to early-stage ERP implementation. Whether you hear that message from us, or Panorama, or anyone else, it's a message worth careful consideration.