How do you plan to increase your I.T. ROI?
How do the best businesses plan to experience strong growth in a volatile market?
Usually by reaping the maximum returns from their current investments. This year should be the year that companies reap greater ROI from their ERP through training investments and by considering how optimising training can increase ROI, employee retention, consistent and continuous project management and best practice realisation.
So what is your company’s training plan? It seems that not investing in training could be direr than one might suspect. A study entitled, Research on ERP System Return on Investment, found that organisations that invested in ERP systems, but did not invest in training, did not do as well as organisations that invested in ERP systems AND the training for them. Additionally, companies that involved higher percentages of their staff in training had higher returns from their information technology investment (Rhoads, 2007). This seems logical, even obvious, right? So then when was the last time your company invested in training its people and increasing its I.T. ROI?
There are many reasons to consider training beyond the initial implementation training, including; The organisation requires a new level of operations capability for the life of the ERP system. Training to support and develop this capability is therefore also required for the life of the system. Daily work routines are often made up of habits and entrenched behaviours. These don’t simply change after one learning session, change happens over a period of time. All organisations have some staff turnover, so there are always new people who will need to learn from scratch. In large organisations, even a low percentage can translate to hundreds of new learners per year! And finally because changes won’t stop at the end of one project, processes change (particularly as optimisation occurs), systems upgrades and enhancements will all continue to occur and require training.
Not investing in training could end up costing you even more. Continued training also presents opportunities for saving costs down the line, through reduced Help Desk and support costs (Currently, fifty five percent of calls are directly user training issues or were related to poor data quality resulting from incorrect entry of data), less downtime due to informal support networks, less error correction and rework and higher levels of business continuity.
Dan Klein, vice president of education services at PeopleSoft was quoted in CIO.com.au, “One of my favourite questions,” Klein says, “when speaking at user seminars is to ask, ‘How many people would go about their training differently on their next implementation?’ Seventy-five per cent of the people put their hands up and said that “next time they’d allow more time for it and that they’d tailor it more around their own business processes. “So ask yourself the same questions. Are you happy to spend thousands on software, but have trouble spending pennies for understanding how to increase your utilisation of it? Too many companies treat training as a check the-box activity but fail to reap the rewards that proper, specific business focused training can produce.
Gartner research asserts that companies allocating less than thirteen percent of project costs to training are three times more likely to have their ERP projects fall short of business and project goals compared with companies that spend seventeen or more percent on training. Our most successful clients, reaping the greatest ROI on their Pronto system, invest in continual training specific to their job roles and their business flows.
Scope Systems is making it our business to shape your business by designing a training course which identifies the underlying flow of information through the business itself and then trains your staff to operate by literally codifying a set of business processes of how to operate the business processes in their job and how it interacts with the overall operation is vital.
Recommended further reading:
Rhoads, CJ Dr. (2007) Research on ERP System Return on Investment.
Article on MC Showcase
Scott, Judy E. (2005) Post Implementation Usability of ERP Training Manuals: the User’s Perspective. University of Colorado, Denver.
Sudipta Dev (2002) ERP Training – An Investment Promising Great Returns.
Article on ITpeopleindia.com
Fletcher, J.D. (1990, July). Effectiveness and Cost of Interactive Videodisc Instruction in Defense Analyses.
Washington DC: Institute for Defense Analyses
Adams, Gregory L. (1992, March). “Why Interactive?”
Multimedia & Videodisc Monitor