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A Brief History of Change – System as Change Driver

Another change concept is the system as change driver. In this model, the requirements of the system represent the “right” business model, and the challenge is to change the user culture, processes and workflows to match the better model, as captured in the system.

This approach, also known as the “one size fits all” model, is fraught with peril, as there is nothing as resistant to change as a human. This concept was initially eagerly embraced, mostly by IT managers, as a way to “fix” problem groups in their portfolio. As implemented, “system as change” often involved IT guys figuring out what was wring with User Managers’ departments. Since often neither group knew how to run the business, the results were long, painful, and fruitless.

With the rise of “enterprise” software, a new twist was added to the concept - “change the enterprise”. Vendors like SAP, Oracle or Peoplesoft would implement their world-class software for your business, covering most of the “core” processes – Accounting, billing, inventory management, order entry, customer service, etc. You, the CEO, could fix what ails the business in one swoop, or position for the future, or conceal what was really wrong – one solution for a myriad of ills.

The problem here was that, of course, your business was special, and some customization was required. As the customization progressed, it often was clear that you were really in four, five or a Dozen different businesses, which had conflicting requirements or issues. The results of this “customization orgy” were often long, painful, fruitless, and very expensive. The project delivered a third of its original scope and a tenth of the planned benefits for twice the price.  But...

System as change driver is a great idea. How come it is so rarely successful?

We have reviewed some of the history of “System as Change Driver” – and a sorry history it is. Bit there are some developments in play that may make this strategy more successful than in the past.

An important development is the “Best of Breed” movement – where Businesses chose the best available operational system for their business or niche, and integrate the set of BoB solutions together. This approach holds out the promise that the Business is really buying a better operational business model with the software. Ideally, industry experts have founded a vertical software company, and captured in code their expert knowledge of how this niche should be run operationally. The software has been installed in several industry players, and the code and operational model have been refined.

The result should be an application targeted to your specific niche, where the best available Operations Model has been captured in software. No tedious requirements gathering – experts have already captured requirements based on industry best practices. No endless costly customization – the system is ready to go.

So why is Best-of-breed System as Change driver (or BoB-SaCD) still not a slam dunk? It’s the “C” component of the BoB-SaCD mix – the Change – that is difficult. Industry best practices or no, system driven or no, change is difficult.  Smart organizations devote almost as much effort to the change process as to the software.

How does your organization handle process change?

Posted on Monday, March 20, 2006 at 10:38PM by Registered CommenterLarry Cone in | CommentsPost a Comment

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