Monday, June 15, 2009

Enterprise system terrorism

I recently read an annual statement from company that had experienced monumental problems with the implementation of a new software program or "enterprise system" as they call it. Unless the organization exists to create software systems, i.e.: Microsoft, these programs are business tools designed to help businesses become more efficient with the purpose of providing better service to customers and ultimately produce increased profits. However, the company previously mentioned is certainly not in the business of creating computer programs and in this annual statement, the CEO used three paragraphs to discuss and reassure customers, investors and employees that the problems with this software program were coming to an end. He writes " … (computer program) has caused (company name) owners, customers, agents and employees a lot of frustration this year. … while we know there would there would be issues when we introduced (computer program), we were caught off guard by their scope. The number of complaints and severity of the problems are both in decline". This business tool has cost this corporation business.

A friend of mine works for a company that has experienced similar problems. The organization that he works for, absolutely consumed by the implementation of a business tool – a software program – allowed their focus to be moved away from their customers resulting in the loss of significant business and some major accounts.

I personally worked for an organization that implemented a software system designed to enhance customer order fulfillment. It was a disaster costing the organization over 10 million (more than 20% of this segment's total volume) in sales in the first year and destroyed all trust that the customer had in this segment of the organization. This computer program was solely responsible for destroying a major growth initiative of this company.

Is it just me or is there something seriously wrong here? Why do organizations continue to allow back of the house business aids to aggravate their customers and employees, eroding trust, sales and profit? With increasing frequency, businesses have become victims to these bits and bytes and minuscule transistors. CEO's, Presidents and business leaders are frustrated and embarrassed by these substantial interruptions in business resulting out of initiatives to improve their bottom line. Some have been removed from their post as a direct result of these disruptions.

One would think that the developers of these software systems would carry more responsibility for the destruction left in their wake. The benefits of their systems are aggressively promoted, and I am not suggesting that these systems are not beneficial – once they are working properly. Perhaps these enterprise system developers should also be on the hook for any business loss resulting out of the implementation of their system.


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