Pass the remote

I think that the corporate objectives of ERP implementations, in multi-site, multi country implementations are being compromised by either the inflexibility or short-sightedness of the corporate IT function.

Let me explain. We are in the business of providing support to manufacturing businesses, primarily here in the UK, for both their Microsoft Axapta/AX and Infor Baan ERP users. We approach those users that we know of through our marketing and we also get a number of calls each week from companies that have these ERP systems.

Where the company is UK based, or has UK based IT, then our conversations with them are often fruitful and we can work together on optimising their systems.

A good number of companies have had their ERP installed via corporate diktat – and I have to say that many of these users are frustrated and unhappy with their critical business system. They often say that they feel the corporate IT doesn’t really care about them and cannot provide the resources to offer training and support but they are not allowed to look at locally based partners who could help them get the most out of their ERP.

I understand the problem and the conflicts. At a corporate level you are trying to attain economies of scale and common business processes and have a blueprint as to how your business works. This can lead to value being released by having less local IT and its associated costs – I’ve been there, I know.

However, the local user, in a different country, feels that the corporate IT function doesn’t understand about the issues and problems facing the users ‘on the ground’. It doesn’t make sense to fly people from corporate IT to the sites around the world to help as it is far too expensive, and resources are probably rather short anyway. But the problem is that corporate won’t allow the use of local companies because they may try and subvert the corporate model.

There is an added complication too. It is likely that the user site is paying a recharge to corporate for the use of the system – they feel that they should be getting a level of service within that fee, which, they think should include on-site training and support. Corporate, on the other hand, can’t build in a recharge to include a certain number of days which may not be used as they will be accused of over charging!

My recommendation would be to allow the local site to have a local budget for training and optimisation that is discretionary spend. Set clear limits as to what can be done locally and, if necessary, vet the local provider. This way corporate will not be perceived as holding the local business back.