A fresh look at IT and your Business – HARD facts on SOFTware.

Feb. 10, 2011 - PRLog -- This will be the first of a series of articles that will inform the reader about how Information Technology (IT) can add value to your business and help you gain a competitive advantage.  The focus will primarily be on Integrated Business Management Solutions (IBMS), but due to the fact that a solution can not be viewed in isolation, other IT aspects such as hardware-, database- and network technology will also be discussed.

Definition

We will start the series by looking at the definition of an IBMS as well as when it is time considering investing in one, or replacing the current one.  The subsequent articles will look in more detail at different modules of an IBMS and related IT issues, as well as the advantages it can create for your business.

There are many different understandings, definitions and descriptions of an IBMS.  The term that is probably best known is ERP, or Enterprise Resource Planning.  These systems provided basic accounting and Materials Requirement Planning (MRP) functionality.  Another widely used term for an IBMS is “Accounting Software” or “Accounting Packages”, although there is a huge difference between an Accounting Solution and an IBMS.  

Fast developments in the software industry have lead to additional modules, which went beyond basic accounting and MRP functionality, such as:
•   Human Capital Management
•   Customer Relationship Management
•   Logistics
•   Job Costing
•   Service Management
•   Electronic Commerce

Due to these advances on functionality and the added modules, we prefer to use the broader term: Integrated Business Management Solution or IBMS.

An IBMS provides a company with the decision support tools needed to effectively manage and grow its business.  These support tools provide an organization with access to the information that it needs, when it needs it, in a user-friendly format. The system as a whole allows each individual to work more effectively with a higher degree of responsiveness and should provide all of the information that each individual within the organization requires to do his or her job. When a change occurs at any point in a business process, the relevant information is updated accordingly, alerting key personnel to changes in status when required. Management then has the ability to view this activity and is thus able to make decisions based on current data and information.

When to consider an IBMS

If a business is experiencing one or more of the following conditions, it is time to seriously consider implementing an IBMS or replacing the current one:

•   If fast and uncontrolled growth is experienced and the current system is negatively impacting the organization’s ability to grow.
•   If more time is spent on the management of information than utilising it.
•   The exact financial performance of the organisation is unknown.
•   Unknown or inaccurate job costing in manufacturing or similar organisations.
•   Requirements and inventories are not in balance, and as a result inventories consistently do not meet, or far exceed requirements.
•   Duplication of effort in order to capture vital data that impacts business processes and employee efficiency.
•   Commonly setting inaccurate customer expectations.
•   Promised delivery dates are regularly missed.
•   Unknown operational performance.
•   The organisation is still not making full use of the Internet.

In the next issue we will look at the underlying technology and the Total Cost of Ownership (TCO) of an IBMS.

About Afresh Consult

Afresh Consult provides a professional, cost effective consulting service for the business and information technology communities in Southern Africa.  We focus on Integrated Business Management Solutions, specifically the HansaWorld suite of products, but typical engagements include:

•   Information Systems planning, analysis and design
•   Operations process analysis
•   Workflow analysis
•   Performance improvement
•   Business automation planning
•   Project management and facilitation
•   Feasibility studies

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Afresh Consult is an official partner of HansaWorld Business Solutions in many anglophone African Countries, offering Implementation, Development and support of the range of fully integrated HansaWorld ERP, CRM, SCM and accounting software.