Maximising strategic information

There are a number of reasons for upgrading the existing information system, for example: to enhance the process efficiency, to provide more reliable analysis, or to comply with the new tax laws. Typically, most of the painstaking process is during the implementation which involves users for training, acceptance testing and data conversion. Users and the management expect the new system to help make work-life balance better and more effective, but unfortunately the real result may turn out to be quite the opposite.
Some of the key areas that have been addressed a lot in going live with a new ERP (Enterprise Resource Planning) system are the information analysis and reports.
In running a business, we all know that information is so important for decision-making. System-generated information must be accurate, complete and timely for decisions. The question is: “Are we using the information to help us do business better?” In certain cases, users requested several reports with a different format from the system, resulting in customisation and new programming, but these reports have not been utilised in an effective manner. Thus, it is very important for the company to ensure that the information will be used as a strategic tool for business management success. The following are things to consider about the information and reporting development under the new system:
Information sharing: The company should create a culture of information sharing so that basic and essential information can be shared among team members who need to use it for brainstorming and decision-making. For example, information should be generated on a timely way and shared with all concerned before the start of a meeting so that enough time can be spent by the meeting participants to analyse and prepare for explanation.
Exception report: The huge volume of data may cause difficulty for users to grasp the key information contained in a long report. Instead of giving users all information, the company may consider providing an exception report that shows variances or unusual fluctuation of certain information. This will help users getting the information requiring attention rather than being overwhelmed with thick reports without seeing important points. For example, the long outstanding purchase orders may point to an error in the goods receiving record or require following up with suppliers.
Legal compliance: It is important to ensure that necessary reports have been developed to serve the legal requirements such as the value-added tax report, the Revenue Department’s requirement on specific supporting details. This would help reduce risks for the company in violating regulations and can result in huge penalty due to failure to comply with the law on reporting.
Duplicate report avoidance: The transition from the old system to a new one can be challenging, especially for users who are familiar with the old system and may want to stick to what they used to receive in terms of information and report format. It is necessary for the project team to ensure that the reports to be developed have been properly discussed and reviewed so that they are minimised as much as possible.
An information system change is considered an important investment to a company. It should give a certain level of confidence that the company and users will obtain promising benefits from the new system. No matter how difficult it could be in measuring the return, it is inevitable for all concerned to keep asking “what else can we get from the new system to make us do things better?” This may help ensure maximum return on information system investment.

Yanyong Thammatucharee
Head of International Finance and Operations at Central Marketing Group
He can be reached at [email protected]