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This was the clear and concise directions, APL’s CEO, Carl K. Arnet gave in 2004 when he presented the company with the challenge of implementing a new, future-proof ERP solution. And that wasn’t all. He rejected every proposal of a thorough evaluation before the decision to invest was made. Instead, he told those in charge to select a standard industry solution from one of the suppliers in the market. There were several crucial reasons for opting for IFS. “That’s correct,” says Fritz Ekløff, IT Director at APL. “In selecting a supplier, we based our decision on the following criteria: we envisaged a mid-sized, project-oriented provider with a global market focus and experience from the offshore industry. We also wanted to avoid the ‘here today, gone tomorrow’ players in the market. We wanted a supplier with a documented long-term market presence. It was also important for us that the vendor was established in Norway.” The whole package
Ekløff continues, “There was no question of doing it incrementally or in parts. CEO Arnet wanted the whole package implemented in one go. Some people shook their heads at this. Just as some had done at the decision to buy a standard solution. Their point was that APL’s business is so specialized that any solution would have to be tailor-made. These objections were dismissed quickly and effectively. No one was able to produce an acceptable explanation of why APL’s business processes were so unique compared with other businesses in the same industry.” “I suppose a heavy sigh went through the company without me hearing,” Ekløff reflects. “Personally, it was a challenge—newly employed and charged with implementing the solution. I certainly couldn’t expect to top the internal popularity charts from the beginning!
Rapid effect
That was almost four years ago. The worried look on Fritz Ekløff’s face has been replaced by a smile. It didn’t take long for APL employees, in Norway and internationally, to see the results of the decision that had been made at top level. The industry-specific solution from IFS showed its qualities early on, even if there is still the odd person who claims from time to time that there is a need for customized adaptations. “A standardized industry-specific solution is never a perfect fit, regardless of the type of business it’s meant to work in,” says Ekløff. “The organization also has to adapt if we’re to get the most out of the system. In addition, the standard version is so agile that we can do most of the customization required to optimize efficiency with in-house IT competence.” Since 2004 APL has invested 10–12 million NOK in the ERP solution and feels it has gotten a good return on its investment. “It’s difficult to assess how profitable an ERP solution is,” says Ekløff. “But we’re in no doubt that it has made APL more efficient, especially the project organization. The benefits of communicating in a standardized system, no matter what part of the world you are in, are obvious. We have a better ‘hands-on’ control of ongoing operations.”
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