Unpredictability is one of the only certainties of today’s business. How do modern-day organizations keep the chaos to a minimum? Brexit has taken the entire planet by surprise sending currencies tumbling and global markets reeling. As economies around the world begin to come to terms with the repercussions of the UK leaving the European Union, the inevitability of change once again rears its head.

And change of this magnitude is not only triggered by political union decisions; the economic meltdown of 2008, Japan’s 2011 earthquake, the USA’s 2001 terror attacks all brought their fair share of chaos to thousands of organizations that would have much preferred order and the predictability that goes along with it. 

In a world that is rapidly shrinking as a global village, change has become unavoidable and the speed and volume of change is growing exponentially. New technology and inventions shape and alter the world profoundly, often within short time frames. For example, consider the impact of mobile technology, open access to IT solutions and cloud computing on businesses. Referring to the volatility, uncertainty, complexity and ambiguity that characterize conditions and situations, particularly when influenced by significant change, V.U.C.A. was coined as an acronym by the US Military in the late 1990s. It soon entered the business world as it become clear that organizations experienced the same challenges as the military. Businesses want uncomplicated clarity and maximum control over their entire operation – no different from a military strategy. 

“Business leaders in a changing world understand the value of instant, reliable information and optimal visibility of all their processes, KPIs and systems at all times,” says Louise Thompson, Chief Services Officer of specialized ERP provider, SYSPRO. “From an ERP perspective, the start point to surviving change is to create systems that not only store information by department or function and allow users to extract and manipulate it as and when this is required, but also to have this level of visibility right across the enterprise.”

Fundamental to managing V.U.C.A. is to select and implement an ERP system that best addresses the exact needs of the enterprise’s business model and all its functions. “In effect, the solution should strengthen management’s foresight while simultaneously enhancing its insight into the business,” explains Thompson. “The management principles of Planning, Executing, and Controlling are all neatly accommodated in any effective ERP system, covering not just the flow of resources and material through the value chain, but also allowing clear visibility and providing critical business information on a real-time basis on any aspect of the organizational process.”

Thompson describes how sound Business Process Modeling (BPM) software improves the efficiency and operational agility of an enterprise by automating, optimizing, and managing its business processes. “BPM offers the methodologies and tools for modeling and administrating processes that involve people, organizations and systems, making complexity easier to see and to understand. In addition, Workflow solutions provide the capability to design and enable the streamlined flow of business processes across the eco-system. It creates a seamless flow between software and the activities of employees, suppliers, and customers.”

The analytical capabilities of an ERP system provides users with information and flexibility to anticipate the changes in the environment that are responsible for the volatility that has become synonymous with modern-day business.
“In a nutshell: any ERP system should smooth the kinks out of supply chain management across all aspects of the business,” says Thompson. “A really good system will cut through the haze of dust kicked up by V.U.C.A. and offer a clear and unambiguous view of processes and systems, allowing for effective management in the most changeable times.”