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"Of all the industries in the world, IT is
probably the one most guilty of overselling itself," says Mike
Roberts, recently systems director for Rolls Royce Engines and group
director of ERP.
The industry seems incapable of seeing things
from its customers' points of view. Roberts doesn't doubt that many
IT projects have delivered savings for industrial companies. But
he doubts whether the IT delivered as much of the benefit as the
reorganisation the IT encouraged. Companies installing e-procurement
have made big improvements in indirect purchasing, "but the
benefit has come form the transformation in the procurement business."
The Internet part of it has been "incidental". Process
change is what counts.
But his strongest words are directed at the IT
industry's failure to make itself aware of the real cost to its
customers of adopting technology: "There's no such thing as
an IT project, only a business project."
Software upgrades are particularly hard to justify:
"Most software salesmen don't have a clue how to build a business
case that stands up to scrutiny." They don't think about the
need to communicate with staff, the training involved, the documentation
that needs to be organised.
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In a typical Rolls-Royce installation 10,000 people have to be
communicated with and trained. The business processes they use have
to be changed and the new data the systems use or generate have
to be quality checked. The information in the processes has to be
communicated, organised and stored, mined and shared, and made to
work.
These are all business, not technology, issues:
"These things are much more important than the software
You've got to get closer to customers and understand what the business
benefits [of a new system] are for them. I have yet to find a software
company that can sensibly help with the business case. That I find
disappointing."
For more information on the Cambashi Seminar,
please email Kathy.strachan@cambashi.com
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