One of the dilemmas I’ve observed  in many companies is the decision to standardize and harmonize internal processes so one implementation fits all, sometimes pushing flexibility and innovation into the back seat. Obviously this is quite a challenge when you need to support different business models (e.g., services vs. products, B2B vs. B2C, …), so you create appropriate processes for each business model your company supports. You roll these out globally in some form of IT solution (ERP, CRM, and all the other three letter acronyms that have been used in our industry) and have your employees work according to these processes.

Source: bioteams.com

These roll outs are expensive, often require sophisticated change management, and when they are completed they may or may not yield the desired results in quality improvement, increased revenues, reduced expenses, higher client satisfaction and more motivated employees. What they often do is stifle innovation. In many instances doing things differently (e.g., new business processes, new business models) or creating new things (e.g.,  offerings that don’t fit into a given framework) become very difficult. One of the interesting things about start-ups is that a significant part of their first years is spent on figuring out the value proposition and the right business model to be successful. Large enterprises don’t have this luxury as they cannot experiment easily. In particular, when – at great expense – they roll out global processes that they make mandatory for everyone to follow.

I wonder what you think about this vexing issue? Care to share an example?