The Company Genome
Rafael Funes -
7/11/2005
Featured Author - Rafael Funes - July 11, 2005
Introduction
All organizations are unique and as different from each other as people are. According to experts, differences among human beings begin with their genetic information and the experiences they live throughout their lives. Organizations are also different based on a genetic information. As a company's genetic information, I mean the personality of its founders, the industry it belongs to, its country of origin, and the moment in history when it is born. All these factors determine its strengths and weaknesses; its success depends on the former, while its failure relies on eliminating—or at least reducing—the latter.
Due to these essential differences, each organization requires a solution that adapts to its needs. This is unarguable when selecting or implementing an ERP system. However, I find that the degree of personalization that the solution and the strategy selected have to undergo is questionable. Most evaluators assume that the whole system has to be personalized, and that the product has to be completely modified. I disagree. From my experience, the best way to increase customers' ability to generate wealth is helping them correct their weaknesses and enabling them to use and develop their strengths. This is easier said than done, but an offer that is based on a standardized product and set of services, creates the need for building a map of each customer's particular features.
As an enterprise software provider, for over ten years I have invested intellectual and financial resources to turn this map—these two maps—into features that will allow customers to use one version of software, regardless of their company's industry, size, location, or age, and become more competitive. I call this set of maps and its consequences the company genome.
The Operating Logic
The first map illustrates the operating logic, which is the set of rules that allow a company to execute its daily activities correctly. We could compare it to what we, as human beings, need to survive. Air goes into our lungs and is carried through our blood to every part of our body. We all know that we can't breathe and swallow or whistle and eat simultaneously. Kidneys clean the blood from several types of residues that have to be eliminated so they don't poison our bodies. We use our eyes to see, our ears to hear, and our head to think. It might sound obvious. However, individuals in some companies imagine that these rules are non-existent, and this creates situations that, if it were people, would make excellent case studies or would be traveling with a 19th century circus. Can you imagine an individual who could see with his eyes closed? It's more likely that someone would be able to sleep with his eyes open, although I'm not referring to those employees who decide to sleep at work and pretend they are awake. Now imagine an import shipment that arrives in a company, and when the warehouse manager tries to record the entry, he realizes there is no purchase order in the system, or that some materials are not listed in the corresponding catalogs. I'm referring to the types of operating rules, to the daily use of common sense. As a software vendor helps its customers control the flow of their operations better, it helps them become more efficient and improve their competitiveness. Thus, companies should adapt to the operating logic of the system they want to implement.
The Business Logic
The second map illustrates the business logic. Business rules are not the same for every industry and every company. This is where differences and complications are most obvious. One individual might be taller than another, or might have a different eye color and different hair texture. Likewise, some companies are larger and have less complex operations, while other companies are smaller but have greater product diversity. Some companies sell services, while others distribute goods, raw materials, or manufactured products. Some require more control and flexibility. The business logic entails the essence of what makes a company unique. But that's not all. It's also the result of what a company learns throughout its existence about how to beat its competitors. This issue is far more complex than the first one. Imagine a one-size-fits-all jacket that adjusts automatically and fits whoever wears it. I took this example from the movie Back to The Future II, but it wouldn't surprise me if someone comes up with such an item in the near future. We mustn't forget that when some of us were kids and others hadn't even been born, Maxwell Smart's phone shoe seemed like the most unlikely thing on TV. Today, there are more cell phones than regular phone lines in my country. The good thing is that there is not as much variety in business logic as in human features, so the task becomes possible. An example of the company genome's flexibility and power is its ability to solve the issue of prices, discounts, and sales that every company offers its customers. Some industries only require a price list that changes sporadically. There are companies however, which need thousands of price lists in different currencies—each one assigned to a customer or group of customers—to which they apply a tiered discount structure based on the type of customer and product, not to mention other discounts in kind. Furthermore, there are industries that don't handle value-added tax (VAT) or else have differential rates, handle taxes for products and services, or withhold some taxes. By configuring the correct parameters, the model should allow the system to behave in the desired way. This is where the solution's flexibility to adapt to the organization's business logic becomes crucial, since it allows customers to maintain those strengths that have made them better than their competitors, while it helps them develop new competitive advantages.
There are many benefits to this approach. The company will get a solution that enhances control and improves its operative flow. Users are able to do their jobs in a simple and clear way, without risking the quality or accuracy of their information. Consultants focus on transferring knowledge and applying methods, processes, and procedures. Technological areas don't have to face failures in the system's operation. The instrumentation period begins immediately, and customers don't have to wait for personalization to be completed. The company doesn't get a system that will be obsolete in a few years, nor does it have to assume high maintenance costs. The implementation project is completed on time and within budget. Competitiveness increases and cost-effectiveness improves. The vendor ends up with another satisfied customer. Everybody wins.
About the author
Rafael Funes has a degree in industrial and systems engineering from the ITESM Campus Estado de Mxico. He was the first recipient of the Gran Orden de Honor Nacional al Mrito Autoral by the Education Ministry in Mexico (SEP) through the Instituto Nacional del Derecho de Autor (INDAUTOR) and endorsed by the World Intellectual Property Organization (WIPO), for creating DynaWare Empresarial as The Best Software Created in Mexico. He has given several lectures on information technology, business, and company vision. He is the author of a column Exclsior and he is a collaborator with El Economista, and Tecnologa Empresarial, among other media. He is the CEO of DynaWare (http://c.technologyevaluation.com/?u=/cp/TEC_article_20050711_al.asp&cl=1&i=1133&c=205&l=1) and a board member of the Asociacin Mexicana de la Industria de Technologas de Informacin (AMITI).
He can be reached at rafael.funes@dynawareglobal.com