Barriers to Implementation

Achieving RTE is hardly rocket science, but organisations do face significant barriers, which Goldenberg says can best be understood in the light of his "10 steps for Creating The Real-Time Enterprise", along with overall time frames for becoming an RTE.

STEP 1: Analyse your current building blocks

Successful RTEs build off current investments in the area of CRM, SCM and ERP. "I'm a strong believer that CRM is the driver behind the RTE," Goldenberg says. "Why? Because CRM systems already connect suppliers, internal customers, distribution channel partners and end users; because CRM already shares processes and data across sales, marketing, customer service and executive functions; and because CRM already moves data between CRM, ERP and SCM applications.

"So start out by analysing what CRM systems and initiatives you currently have in place. What you are looking for is an understanding of how best to exploit these efforts to become an RTE. For example, how can you leverage or expand your current CRM processes? How can you leverage or expand on the people changes that you already have put into place? How can you leverage and expand the technologies currently in place? Run similar analyses for your SCM and ERP building blocks."

STEP 2: Create your RTE road map

This includes creating a clear vision regarding how your company will function as an RTE, along with a road map that will include people, process and technology components. Your road map will lay out: the RTE processes that need to be in place and how to accomplish them, your RTE people issues and how to overcome them, and the required RTE technologies and ways to implement these technologies over time. Your road map also will describe how you intend to reach out to your suppliers and customers, usually in the form of focus groups, to validate your emerging RTE vision.

STEP 3: Prioritise processes and functions to automate

Next you want to prioritise the RTE processes and the RTE business functions to automate. For example, assume your RTE vision suggests you have three major business processes that require enhancements to become a RTE. You will need to agree on which of these three business processes you will implement first, second and third. "In other words, whereas the RTE road map (Step 2) leaves you with the total picture of the RTE elephant, in this step you are deciding on which pieces of the elephant you should be biting off and in which order," Goldenberg says.

STEP 4: Secure strong supplier, partner and customer buy-in

To secure buy-in on the supplier, partner and customer side, you have to determine and communicate what is in it for each of them - in other words, why they should be interested in participating in your RTE. "You will want to meet with them to allay their fears, to talk through their value proposition and to discuss key benefits to participating in your RTE," Goldenberg says. "One of the most effective tools in this step will be your RTE Communications Plan."

STEP 5: Demonstrate RTE value and gain top management support

To accomplish this, you will need to build a value proposition based upon both execution (lower costs per transaction, higher revenues/employee) and structural efficiencies (securing sustainable, competitive advantage). You can also include soft efficiencies (higher customer delight or intimacy), but the RTE value proposition has to have enough meat on the bone so top management overwhelmingly concludes that the value far outweighs the cost. A hint: wrap your RTE value proposition within your RTE business case, Goldenberg advises. "This is a critical step in that it is a potential stop point, a point where management can say: 'I'm just not convinced', and drop it, postpone it or send your RTE efforts back to the drawing board," he says.