Please plan to attend our November 21, 2006 Professional Development
Meeting.
SCM - Delivering on its Promise
Four Cardinal Principles for
Maximizing Payback from Supply Chain Technology Investments.
In a recent Booz Allen Hamilton survey of
nearly 200 companies worldwide, the depth of frustration with
SCM systems was evident with nearly half of the respondents
characterizing their implementations as a disappoint. Although
software vendors and systems integrators have frequently taken
much of the blame for these failed programs, the survey also
revealed that the implementing organizations need to take at
least partial responsibility for these efforts not meeting
expectations. Among the business-related issues negatively
impacting the success of these initiatives were implementation
delays caused by problems on the business side, the inability
of organizations to define technology needs
cross-functionally, and a lack of extended enterprise
participation.
The business side of the organization
should not neglect its critical role in making sure that SCM
system implementations are successful. The classic guidelines
for technology investments also hold true for supply chain
management technology implementations: strong executive
support, mature program management capabilities, and a
willingness of the organization's business units to embrace
the changing work habits that will be introduced by the new
technology. To make these projects a success, the four
Cardinal Principles will help organizations get the most value
from their SCM technology implementation:
- Be SMART- IT
departments and business units must arrive at a common
understanding on what role the SCM technology investment will
play and what capabilities it will or will not bring.
- Treat supply chain
technology as an integral part of the business- SCM
system investments should be strategic features in a
company's overall application portfolio and technology
capabilities.
- Exercise project
management best practices- Manage complexity or it will
manage you. Supply chains are comprised of a complex yet
critical set of functions that have an impact throughout an
entire organization. Successful implementations require a
mixture of well-designed work plans, strong project
leadership skills, and the ability to manage change.
- Focus on the people-
Even the best planned SCM technology introductions will fail
if employees are unprepared for the implementation.
The term supply chain management (SCM)
has, in some circles, become synonymous with the software and
technology tools designed to help organizations maximize the
effectiveness of their supply chains. But years of vaporware,
overstated promises, and delayed implementations have removed
much of the luster from these tools, and caused many business
executives to be wary of investing additional resources on SCM
software.
Jeffrey Bloom
An
executive with over 17 years of industry, consulting and
global management experience, Mr. Bloom is a Principal with
Booz Allen
Hamilton's Information Technology Practice. Mr. Bloom has
significant experience leading large initiatives that have
assisted consumer products companies and manufacturing
(Automotive and Heavy Industrial) utilize technology to
transform their supply chain. Specific area's of focus have included leading full
systems life cycle development (strategy, design, construction
and deployment) for both custom and package solutions. ERP and supply
chain solutions experience include i2, Manugistics, SAP and
Microsoft Business Solutions. Mr. Bloom's
supply chain area's of expertise include, order management,
demand and supply planning, logistics, procurement through
payment, supplier relationship management and RFID solutions. Prior to
joining Booz Allen, Mr. Bloom was lead Microsoft Consulting
Services Automotive practice which included developing
software solutions for the automotive industry. An acknowledged
business and information technology thought leader and author,
Mr. Bloom received his MBA in Finance and Management of Global
Information Technology from the Kogod College of Business at
American University. He
received his B.A. from the University of Michigan in Political
Science.
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