Our work falls into two categories:
- ERP-enabled global operating models
- Tech-enabled service operations
ERP-enabled global operating models
Many companies struggle to extract the maximum value from their enterprise resource planning (ERP) systems because they are often conceived purely as IT projects and neglect evolving business needs. Only 20 percent of companies manage to capture more than half the projected benefits.
By taking a business-driven approach to ERP investments and placing them in the context of the client's global operating model we can ensure that business needs and the ERP program are aligned, creating annual benefits of $100 million in some cases. We focus on a few large structural and process improvement levers such as finance shared services, straight-through order processing, and harmonized customer and purchasing data, where the trade-off between customization and standardization must be evaluated.
We bring extensive experience in designing global operating models tailored to clients' specific strategic needs. We then draw on a rich set of tools to help organizations capture the full potential from the transformation of their business processes and the ERP system at any point in its lifecycle. These include diagnostics for different business functions to predict the value at stake (at an automotive manufacturer the ERP value diagnostic helped increase the annual rate of return for the business case by 15 percent), and a proven project setup and execution methodology. This is especially valuable as all too often it is in the later stages of implementation and rollout that organizations fall short of maximizing the potential.
By helping build client capabilities and instigating our proven change-management program, we can help clients realize the full benefits of such a large-scale IT program over time.
Tech-enabled service operations
We help companies across all sectors transform their service operations. Working closely with our clients we can help achieve sustained improvements in productivity of 20–40 percent, along with a greatly improved customer experience. Our areas of focus include mobile workforces, contact centers, back offices, and branch operations.
We have found that the fastest and most significant improvements occur when lean programs are supported with the right technology. McKinsey combines extensive experience in lean with substantial expertise in IT to bring clients the best of both. We have a portfolio of IT tools, many proprietary, which we use to conduct rapid assessments of the potential for improvement (typically in less than a week). We also help clients test new tools and process improvements in the field.
We implement high-impact solutions either with the help of our own custom applications development team (McKinsey’s Systems Solution Center), or in joint relationships with best-of-breed vendors. Our commitment to testing and refining solutions before full rollout allows us to deliver high-quality solutions in a much shorter timeframe than traditional approaches allow.