Integrating Business Systems - A Mid Size Company Balancing Act
Most start-up businesses that grow, eventually reach a point where the system solutions they used to help them grow, actually become part of the problem, stifling future growth.
Many business owners then make the mistake, and yes it can be a big mistake, of looking for something to 'add-on' to relieve the bit of the immediate problem they can see, clinging on to the familiar system that has helped them in the past, convincing themselves that if they can just add or develop a bit here and a bit there it will be fine.
In reality, what has happened can be likened to having set off down a particular track on a pump - truck, upgrading to a steam train, and when that steam train is running out of steam - trying to fit an expansion chamber to the boiler to make it go fast again! It may work for a short while, but we all know where that approach will end up.
When you have succeeded up to the point where you are competing with companies who are super- efficient, you need the right tools yourself to stand a chance of survival - let alone prospering! Some firms try for years to enhance their existing systems, unable to see that all of this time they are struggling to stay on top of their systems - they are actually falling behind in the market place.
A company that has slowed in growth is actually falling behind competitors that have sustained their growth rate.
Also, the longer firms hang on to their now unsuitable systems, the further entrenched they become in their viewpoint that the system they have will be 'sorted' for them 'one day'.
It never is.
Once the decision has been taken to upgrade systems to allow the business to grow - a long term view needs to be taken for two reasons: 1) The chosen system should be considered as much as possible in terms of how big and in what direction the company is intending to grow.
Nobody has a crystal ball here - so the flexibility of any chosen system must also be a major consideration for a wise investment.
2) It is a long term investment - so look at the level of investment now and consider very carefully the potential / realistic payback scenarios.
Under investment and over investment both put the company at unnecessary risk, there is a balance to find here, it is MOST important to get as close to the perfect balance as possible at this stage.
Very, very rarely, a system off the shelf will match what you are looking for it do for you.
In reality, question again and again how EXACTLY any proposed system matches your requirements.
Changes to any part of any truly fully integrated system (If they are offered at all) - are likely to have consequences somewhere else in the system (otherwise...
they are not integrated are they!), so always check what the consequences of any bespoke changes may be before proceeding.
An inflexible system that doesn't match parts of your requirements should be discounted at an early stage.
Finally; If your current systems are already causing you problems - act decisively, act now.
If you are not making as much profit as you can right now, right now you ARE REALLY losing money.
Stop it.
Now.
Many business owners then make the mistake, and yes it can be a big mistake, of looking for something to 'add-on' to relieve the bit of the immediate problem they can see, clinging on to the familiar system that has helped them in the past, convincing themselves that if they can just add or develop a bit here and a bit there it will be fine.
In reality, what has happened can be likened to having set off down a particular track on a pump - truck, upgrading to a steam train, and when that steam train is running out of steam - trying to fit an expansion chamber to the boiler to make it go fast again! It may work for a short while, but we all know where that approach will end up.
When you have succeeded up to the point where you are competing with companies who are super- efficient, you need the right tools yourself to stand a chance of survival - let alone prospering! Some firms try for years to enhance their existing systems, unable to see that all of this time they are struggling to stay on top of their systems - they are actually falling behind in the market place.
A company that has slowed in growth is actually falling behind competitors that have sustained their growth rate.
Also, the longer firms hang on to their now unsuitable systems, the further entrenched they become in their viewpoint that the system they have will be 'sorted' for them 'one day'.
It never is.
Once the decision has been taken to upgrade systems to allow the business to grow - a long term view needs to be taken for two reasons: 1) The chosen system should be considered as much as possible in terms of how big and in what direction the company is intending to grow.
Nobody has a crystal ball here - so the flexibility of any chosen system must also be a major consideration for a wise investment.
2) It is a long term investment - so look at the level of investment now and consider very carefully the potential / realistic payback scenarios.
Under investment and over investment both put the company at unnecessary risk, there is a balance to find here, it is MOST important to get as close to the perfect balance as possible at this stage.
Very, very rarely, a system off the shelf will match what you are looking for it do for you.
In reality, question again and again how EXACTLY any proposed system matches your requirements.
Changes to any part of any truly fully integrated system (If they are offered at all) - are likely to have consequences somewhere else in the system (otherwise...
they are not integrated are they!), so always check what the consequences of any bespoke changes may be before proceeding.
An inflexible system that doesn't match parts of your requirements should be discounted at an early stage.
Finally; If your current systems are already causing you problems - act decisively, act now.
If you are not making as much profit as you can right now, right now you ARE REALLY losing money.
Stop it.
Now.
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