Friday, December 10, 2010

Fear of Change

Fear of Change

Does your company face any of these dilemmas?
·         Question if they should replace their aging system(s) or live with it despite its deficiencies?
·         Not want to relieve a previous bad experience?
·         Not want to stress their personnel with learning a new system or technology?
·         Make excuses about why new software is not needed?

Top issues:
·         Fear limits selection of new computer systems.
o    Fear of change is often traced to the Information Technology department.
o    Complacency using their existing equipment, reluctance to learn new technologies. 
o    Not sure if new equipment meets their reliability requirements. 
o    Afraid their jobs will be outsourced or not needed.
·         Wrong choices lead to business disruptions and financial losses.
o    Previous bad experiences and losses from incorrect decisions create fear that history will be repeated.
o    At what point does the continued losses become more than the cost of a new system? 
o    You know tough decisions need to be made, but fear holds you back.

The reasons for change:
·         Newer, integrated systems provide management the ability to make informed decisions.  Decisions based on facts and known metrics, not gut-feelings.
·         Loss of profits due to poor inventory management and customer management.
·         Compounded losses add up.
·         Accepting errors as the cost of doing business.
·         Increased efficiencies lead to lower operating costs. 
·         Either sales volumes must increase or profit margins must change if the company is going to survive without making necessary changes.
·         Manual processes should be replaced with automated systems to reduce errors and labor overhead without sacrificing customer support.

You decide:
Do you feel that, in order to compete in today’s market, having a system that integrates the supply chain, warehouse operations, ecommerce, back office/financial integration, would offset the effect of increased operating costs, lost sales, excess or misplaced inventory, and additional expenses that lower your profit margin?

Dolvin's web site has information and links to find out more about Enterprise Resource Planning (ERP) systems and how they can improve your bottom line.

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