Tag Archive: business

  1. How Disengaged Business Owners Can Derail Your ERP Implementation

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    Why Active Involvement Is Critical for ERP Success


    Enterprise Resource Planning (ERP) implementations are among the most transformative, and challenging, initiatives a company can undertake. While technology and project management often get the spotlight, the real make-or-break factor is the engagement of business process owners. When these key stakeholders are disengaged, the project faces a host of risks that can undermine the entire effort. In this post, we’ll explore how lack of involvement from business process owners can derail an ERP implementation and what organizations can do to avoid this costly pitfall.

    Who Are Business Process Owners?

    Business process owners are individuals within an organization who are responsible for overseeing specific workflows, such as finance, procurement, sales, or manufacturing. They possess deep knowledge of their respective areas and are best positioned to define requirements, validate processes, and guide change management throughout the ERP project.

    The Danger of Disengagement

    ERP systems are complex, and their success depends on accurately mapping business processes and integrating them into the new system. When process owners are disengaged, several problems can arise:

    • Poor Requirements Gathering: Without active input from process owners, project teams may rely on outdated or incomplete documentation. This leads to missed requirements, incorrect configurations, and processes that don’t reflect actual business needs.
    • Lack of Ownership and Accountability: Disengaged owners don’t feel responsible for outcomes, leading to finger-pointing when issues arise and a lack of champions to drive adoption and resolve problems.
    • Resistance to Change: ERP projects inevitably require changes to established workflows. If process owners aren’t involved early on, they may resist changes, undermining training and sabotaging user adoption.
    • Delayed Decision-Making: Many critical decisions depend on process owners. If they’re absent from discussions, approvals stall and the project timeline slips, increasing costs and frustration.
    • Testing and Validation Issues: Proper testing relies on business users validating that the system works as intended. Disengaged owners may skip or rush testing, resulting in costly errors that surface post-launch.

    Real-World Consequences

    These issues aren’t theoretical. Countless ERP failures can be traced back to disengaged process owners. Projects run over budget, deadlines are missed, and the final system fails to support core business activities, forcing expensive rework or even complete abandonment of the new platform.

    Recent studies reveal that up to 70% of ERP projects fail to achieve their intended objectives, with poor stakeholder engagement cited as a leading cause. According to a 2023 industry survey, organizations with strong business process owner involvement were 2.5 times more likely to complete ERP implementations on time and within budget compared to those with low engagement. Additionally, projects that lacked active participation from key stakeholders experienced a 40% increase in post-launch issues and user dissatisfaction.

    Strategies to Foster Engagement

    Given the risks, companies must take proactive steps to ensure process owners are engaged from day one:

    1. Executive Sponsorship: Leadership should communicate the importance of the project and make engagement a clear expectation for process owners.
    2. Clear Roles and Responsibilities: Define what is expected from process owners, including participation in workshops, decision-making, and testing.
    3. Regular Communication and Updates: Keep process owners informed about project progress, upcoming tasks, and impacts on their workflows.
    4. Incentivize Participation: Recognize and reward contributions to encourage active involvement.
    5. Provide Training and Support: Equip process owners with the skills and knowledge needed to contribute effectively.

    Conclusion

    ERP implementation is a team effort, and the engagement of business process owners is critical to success. Disengagement isn’t just a minor setback—it’s a threat to the entire project. By prioritizing their involvement, companies can dramatically increase their chances of a smooth, on-time, and on-budget ERP rollout that truly supports the business.

    The top three things to focus on are…

    1. COMMUNICATION: Provide regular and transparent communication about project goals, timelines, and individual responsibilities to keep process owners informed and invested.
    2. TRAINING: Offer targeted training and ongoing support to ensure process owners have the necessary skills and confidence to participate effectively.
    3. RECOGNITION & REWARD: Recognize and reward active involvement and contributions, using incentives to motivate engagement throughout the project lifecycle.

    Matt Craig, Senior Director

  2. Our Approach to Application Development Consulting 

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    How Our High-Value, Purpose-Built Application Development Services Deliver Results Across the Board.

     

    When your organization requests IT consulting services from Core Catalysts, you can expect a highly intentional process that not only delivers results, but establishes a sustainable legacy and long-term success. 

    Core Catalysts knows that challenges such as application development require more than a consulting firm that “knows tech.” Taking many strategic steps alongside development gets you across the finish line, including:

    • Dynamic program and project management.
    • Effective business analysis and process mapping.
    • Key development resources.
    • Comprehensive application functionality.

    Core Catalysts provides significant expertise in IT implementation, but our robust services offerings turn application development into something larger: comprehensive process development. When we approach IT implementation, we also ensure that we make the best decisions on behalf of all stakeholders, while reducing costs and securing team member buy-in.

    A Core Catalysts Case Study In Application Development

    Our client is a globally recognized business that required our assistance with their goal to build a high-value, purpose-built application. This application modernization project would allow them to automatically allocate insurance premiums across their multiple properties. 

    Our initial assistance was focused on helping them to project manage the effort, which also included vendor management. In addition, this client needed a skilled resource that could aid them in gathering all the requirements necessary for the creation of this application. 

    Our Initial Recommendations: Project Management

    Core Catalysts assigned a seasoned project manager with significant experience in managing custom development projects. This individual quickly established a project timeline for the initial phases of the project, leading up to actual development. 

    Additionally, the project manager established the appropriate project governance that would help ensure the proper management of risk, issues, and changes. As part of this governance, and critical to the gathering of requirements, our project manager determined that a stakeholder analysis was necessary. This analysis identified all appropriate internal and external individuals and established their project needs (e.g., the creation of a RACI model to determine which team members were responsible, accountable, consulted, and informed).

    Implemented Business Analysis and Cost Reduction Solutions

    In addition, Core Catalysts assigned a highly skilled business analyst, who guided our client through the development of their application requirements. This individual leveraged the stakeholder analysis and initiated interviews and workshops that allowed the stakeholders to discuss their needs and expectations. 

    This business analyst carefully documented the requirements using a proprietary “traceability matrix” that helps to link business, functional, technical, and testing requirements together. After the business analyst reframed this data in a logical and consumable format, they validated the information with the appropriate stakeholders. 

    Application Development Consulting Begins

    Upon completion of these efforts, the requirements were provided to the application development vendor that the client selected. This vendor provided our client with a timeline and cost estimate to complete the application. Unfortunately, the timeline and cost associated with the development of this application was significantly longer and significantly higher in cost than our client had anticipated. 

    Intimately familiar with the application’s requirements, Core Catalysts took the opportunity to provide our own cost and timeline estimate to the client. Our estimates were significantly less than those of the other vendor. Because Core Catalysts had already established trusted working relationships with the stakeholders and had intimate familiarity with the requirements, the ramp up time to development was significantly reduced, thereby lowering costs as well.  

    A Highly Efficient Timeline 

    Our client selected our proposal to build this high-value purpose-built application, including development work on the initial phase and an MVP (minimum viable product). Our work commenced immediately.

    Because our client valued our ability to respond quickly to their needs, they requested that Core Catalysts not only host the application, but also provide ongoing maintenance and support.

    Within three months our client was able to interact with the initial build of the application. Within six months, our client was able to start using some of the initial functionality within the new application. At the nine-month mark, our client had a complete and operational MVP that provided them with the foundational elements necessary to properly allocate insurance premiums across all their properties.  

    Successful Application and Process Development 

    As the MVP phase came to a close, the trusted relationship that Core Catalysts established with our client was still flourishing. Our ability to execute and deliver on their requested product gave them the confidence to move forward with phases two and three of the project. 

    Core Catalysts is currently working on phase three, continuing to provide additional application modernization and functionality for our client. We provided immediate results and value for both individual users of the application and our client’s entire organization.

    4 Reasons to Partner With Core Catalysts For Application Development Consulting

    This case study illustrates our application and process development success. This success can be broken down into four essential qualities that separate us from other business consulting firms. 

    • Seasoned program and project management talent: Our team’s experience ensures we honor project timelines, reduce costs where possible, and expediently and efficiently deliver application functionality.
    • Effective business analysis and process mapping: We provide highly-skilled resources to gather business and functional requirements, and fully map the application development process. We offer a deep understanding of technology, allowing us to initiate technical requirements, as well as associated testing requirements, such as quality assurance. 
    • Robust development resources: Core Catalysts provides clients with a blend of onshore and offshore resources for the development of the application. This ensures that communication, critical in the development of a custom application, is effective and consistent. We also provide clients with balanced cost models, allowing applications to be built in a cost-effective manner.  
    • Exceptional application functionality: We ensure that your application meets all your functionality requirements, including application modernization. Ultimately, with Core Catalysts’ help, your application will meet or exceed your requirements, so you can use this new resource efficiently and sustainably. 

    Core Catalysts exists to resolve your challenges and deliver results that are yours for the taking. If your team requires application development to modernize your processes, improve organizational efficiency, or deliver any other key metrics, contact our team

    -Core Catalysts Team

  3. Questions for 2022 Pt. 4: Automation

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    Today we offer the final post in a series focusing on questions for 2022. You can read the previous posts on data literacy, price increases, and expense control here, here, and here.

    This week, we further explore the opportunity to evaluate (or reevaluate) business cases for increased automation in light of the current business environment, and the likely continued knock-on effects of the pandemic.

    What we already know:

    As in previous weeks, let’s take what we know about 2022, and then apply it to the question.

    The current US labor market is unlike any previously experienced in recent memory:

    • A greater than expected death rate has reduced the like-for-like labor pool
    • Greater than average retirement rates have also reduced the like-for-like labor pool
    • A shortage of affordable childcare has also negatively impacted the labor market

    These and other pandemic driven factors have given rise to unprecedented labor shortages, pressure to increase wages, greater than average labor turnover (“The Great Resignation”), and HR nightmares all around.

    Great, but so what?

    The bottom line is that many businesses cannot find qualified candidates to fill open positions. Even when they are offering above market rates, putting revenue, profit, growth, and even long-term business viability at stake, there remains a shortage of viable candidates.

    This is where the question of automation comes in.

    In our experience as consultants, we’ve often seen clients consider the investment and business case for increased automation. This is across many industries and business functions, looking at everything from the standard evaluation of more efficient heavy machinery to consideration of exotic solutions involving robots and artificial intelligence, through to more mundane decisions on IT. Many times, even when the return on investment is clear and the business benefits obvious, they hesitate to make these investments due to perceived risks, the availability of labor, and the fact that their businesses could still operate satisfactorily without increasing automation.

    In most cases this was probably the right decision at the time. But the question now is, “Can businesses really afford not to consider and implement increased automation solutions?”

    If labor is a sizable part of your business expenses, and your labor costs are increasing, now is the time to look at labor saving and automation solutions no matter what the industry or function.

    In the past, automation investment cases may have hinged on reducing existing headcount. Now, they might revolve around the mission critical reality that people cannot be found to do the work that needs to be done for the business to operate.

    Equally, maximizing productivity and job satisfaction of existing employees in the tight labor market may also provide a compelling case for investment.

    Essentially, investment cases for automation may now be about more than just simple margin improvement, or cost takeout opportunities that previously you could afford to ignore or not do. They could relate and be the answer to existential threats to ongoing business sustainability.

    Conclusions

    If, for whatever reason, you have previously considered automation but decided not to move forward, it may make sense to revisit these potential opportunities.

    Now might be the right time to identify and evaluate automation opportunities. It might also be time to implement anything that is either a quick-win or that could be transformational, be that from an operational or financial perspective.

    Core Catalysts regularly helps clients identify opportunities for increased automation and build business cases to support investment decisions. We also aid in vendor selection through to project management and implementation of automation initiatives, across all sizes, types, and durations of project. If you believe we could help your organization, why not reach out to us to schedule a call?

    We hope you have enjoyed this series of thought-starters for 2022. Thank you once again for reading and please share any thought or comments you have, and reach out to us if you have any questions.

    -Core Catalysts Team

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