SAP is built to support, drive and automate companies most critical business processes, helping them becoming truly intelligent enterprises.
SAP scales almost endlessly, provides transactional security, auditability - simply - you can count on it.
But there appears to be a thin line between value and quantity related processes.
What do I mean?
If people in production would trust system data as much as people in the tax department, they would follow system made suggestions to produce a certain quantity of a product on a particular day.
▶︎We should see that suggestions to produce something (planned orders) are converted into production orders on time, and that production delivers the finished product on the schedule date
▶︎We should see that the guys in procurement convert suggestions for purchase (purchase requisitions from MRP) into Purchase Orders on time, and that those Purchase Orders are goods receipted on the expected date
▶︎We should also see that Sales Orders are delivered on the material availability date, so the day by which the required material should be available
▶︎ We should see that......
But what we observe is something different:
I am (no longer) surprised whenever I see these behaviours again and again when leveraging SAP Process Insights - the little image shows some examples of KPIs that highlight the mentioned behaviour.
How can this be explained?
For years I am trying to find explanations on why it is so hard for organizations - and I believe it has a lot to do with delegation of control.
You only delegate control if you have trust - and as long as you don't - you will not progress. Yet, the challenge with trust is the following :
Trust is built slowly over time, but destroyed within a fraction of a second or with just one incident.
So I believe that most organisations intended to build processes that they can delegate control to, providing value and enabling focus on other tasks. If then during the Go Live of the respective processes the system behaved 'untrustworthy' - confidence got lost, and wasn't regained again.
So, people started with trust in mind, but where only willing to delegate control if the system behaviour supported trust - which they sometimes did not.
And as it often is in life, if you feel let down by someone, you may not give a second chance.
🌞 Well, the beauty with software is : You can leverage SAP SIGNAVIO Process Insights to identify where you want to rebuild trust, you receive automated recommendations on what you can do, and you can leverage the SIGNAVIO Suite to drive the transformation of your processes, along with your people and systems.
Contact me if you want to discuss about the above !
SAP scales almost endlessly, provides transactional security, auditability - simply - you can count on it.
But there appears to be a thin line between value and quantity related processes.
- VALUE
- Organization trust the finance data (for good reason), accounts receivable and payable, financial statements to the stock market ✅
- QUANTITY
- Logistics, supply chain, material management, production, stock transfer🤨
What do I mean?
If people in production would trust system data as much as people in the tax department, they would follow system made suggestions to produce a certain quantity of a product on a particular day.
▶︎We should see that suggestions to produce something (planned orders) are converted into production orders on time, and that production delivers the finished product on the schedule date
▶︎We should see that the guys in procurement convert suggestions for purchase (purchase requisitions from MRP) into Purchase Orders on time, and that those Purchase Orders are goods receipted on the expected date
▶︎We should also see that Sales Orders are delivered on the material availability date, so the day by which the required material should be available
▶︎ We should see that......
But what we observe is something different:
- Dates, quantities, recommendations are only partially followed
- Humans override the system suggestions
- Workarounds seem to be done
- Humans know something that makes them not follow system made suggestions
I am (no longer) surprised whenever I see these behaviours again and again when leveraging SAP Process Insights - the little image shows some examples of KPIs that highlight the mentioned behaviour.
How can this be explained?
For years I am trying to find explanations on why it is so hard for organizations - and I believe it has a lot to do with delegation of control.
You only delegate control if you have trust - and as long as you don't - you will not progress. Yet, the challenge with trust is the following :
Trust is built slowly over time, but destroyed within a fraction of a second or with just one incident.
So I believe that most organisations intended to build processes that they can delegate control to, providing value and enabling focus on other tasks. If then during the Go Live of the respective processes the system behaved 'untrustworthy' - confidence got lost, and wasn't regained again.
So, people started with trust in mind, but where only willing to delegate control if the system behaviour supported trust - which they sometimes did not.
And as it often is in life, if you feel let down by someone, you may not give a second chance.
🌞 Well, the beauty with software is : You can leverage SAP SIGNAVIO Process Insights to identify where you want to rebuild trust, you receive automated recommendations on what you can do, and you can leverage the SIGNAVIO Suite to drive the transformation of your processes, along with your people and systems.
Contact me if you want to discuss about the above !
- SAP Managed Tags:
1 Comment
