Prd 005 What are the essential components of Value Creation through Precision Configuration, Based on Precision Taxonomies? Created by James on 6/23/2013 9:20:03 AM
The following are the components of value creation using precision configuration contrasted with the traditional approach to ERP configuration:
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Item
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Value drivers of Precision Configuration
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Traditional ERP Configuration
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1
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The Precision Configuration approach demands critical thinking about the precise definition of the business which results in value adding use of the system
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The conventional approach tolerates and encourages sloppy thinking and results in consultants who never really understand the business
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2
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Requires precise analysis of software setting options ensuring optimum use of the software
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Sloppy thinking results in teams that never really understand how the software works
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3
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Provides a logical mechanism to rapidly configure products, customers, etc in fine detail facilitating maximum automated processing
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Lack of logic and structure in the master data results in time wasting and imprecise product, etc configuration
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4
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Maximizes use of inherent software features maximizing effective use of the software including optimal configuration of workflow (process), etc
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Clumsy configuration results in large parts of the software being sub-optimally used and also results in large amounts of unnecessary custom development, including numerous spreadsheets
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5
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Maximizes ease of use of the software resulting in improved speed and accuracy of posting, etc
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Posting is sloppy and inaccurate and time consuming, lots of errors
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6
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Opens the door for small pieces of clever custom development and unconventional use of standard modules
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Lots of roughly designed and built add-ons, lots of Excel spreadsheets
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7
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Supports optimized strategic and operational governance resulting in improved delegation and enhanced accountability through accurate modelling of the business
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Increased overhead in the use of the system and inefficiencies hinder effective governance
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8
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Enables a rich diversity of standard reports to be produced before commencement of live operation allowing greatly improved management decision making
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Even simple reports are time consuming to build and difficult to maintain with ongoing high maintenance costs and effort
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9
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Enables the production of rich multi-dimensional query facilities in the Business Intelligence environment improving business analysis and effectiveness and efficiency of operations
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Such complex query facilities are almost impossible to develop and what is developed if of limited value
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10
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Greatly simplifies the production of rich business specific economic and other models supporting high end strategic and operational analysis
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In most cases the business is not aware that such analysis is possible and attempts at advanced analysis usually end in failure or are extremely clumsy
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11
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Overall, at all levels of the business the system configuration facilitates greatly improved decision making resulting in greatly improved competitiveness and profitability
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Typical installations hardly facilitate real high value decision making and frequently hinder it
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There are dramatic differences between the two methods of ERP implementation.
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