Evaluating systems’ optimal cost and investment levels to sustain future growth
Our client, a major Spanish construction company had been experiencing rapid growth and investing in building their own tailored ERP from the ground up. There was disagreement among Top Management around the adequacy of the current systems and the acceptable level of investment needed for the future.
Thus, our project was set to evaluate the suitability of the systems’ architecture and functionalities along with required investment and give a recommendation on how to proceed.
It was key to ensure alignment around what the main business needs were, and whether the system would be able to handle future growth and diversification. In order to do so, we worked closely with a group of 40+ directors to collect their concerns and create consensus. Afterwards, we carried out a detailed analysis of system functionalities and support of current process, error logs, investment accumulated/expected as well as market benchmarks in order to evaluate the effectiveness of the current systems.
Our main finding was that the systems did not appropriately meet our client’s requirements and that they were excessively expensive (both from a CAPEX and OPEX perspective). This analysis resulted in a decision to halt the development of the current tailored system and migrate to a standard ERP, investing in specific modifications. Also, a large number of opportunities for process automation were identified and implemented along with a new organization and responsibilities.