Last century's news
Due diligence is best done when it's due, but late is better than never. Now's the time to give those Y2K rush-job fixes a much-needed improvement.
While the Y2K scare may seem like a distant memory, your IT department may still be paying the consequences. For many companies, the threat of software meltdowns resulted in hasty solutions that plugged the gaps. Now is the time to give those rush-job systems a much-needed tune-up. "A lot of companies put in an ERP [enterprise resource planning] solution very quickly to replace their legacy systems... but in doing that they did not have the opportunity to ensure the integration to achieve the efficiency these packages [should] give them," says Tom Mangan, managing partner of Arthur Andersen Enterprise Technology Solutions.
Due diligence is best done when it's due, but late is better than never. While you give your ERP system a hard look, think about how you can further integrate your company's applications. Mangan expects many businesses to look to enterprise application integration (EAI) technologies, such as TIBCO ActiveEnterprise and webMethods Enterprise to help them connect CRM, ERP, and supply-chain systems.
EAI integrates business processes, making companies more nimble. Employees can do their jobs without having to open a half-dozen programs. "The real competitive weapon is speed," Mangan says. "To be able to do that, order management functionality has to be integrated with inventory, scheduling, service... all of that has to operate seamlessly."
The same holds true for your strategic partners. "[Customers] are trying to manage their supply chain strategically. They're trusting inventory in our hands," says Kevin Humphries, senior vice president of information technology for FedEx. To better serve its customers, the company knows the key is information.
That means giving its own employeesââ,¬"-wherever they may beââ,¬"-access to as much data as possible. "The key to our growth is the amount of information we are able to provide the field," Humphries says. To answer the challenge, FedEx is replacing its infamous tracking wands with powerful wireless Internet devices code-named PowerPads. FedEx won't discuss projected costs or anticipated savings of the PowerPad project, but considering the company's US$400 million annual IT capital budget and 136,000 employees, both costs and savings will be dramatic.
