The Build vs Buy
DebateBest Practices for EHS and Quality management
Agenda
• Why Software at All?
• Home Grown vs
Commercial
• What are the “Table
Stakes”
• Going Beyond Simple
Workflows
First the Buzzwords
What This Really Means
“It's about getting things down
to one number. Using the stats
the way we read them, we'll find
value in players that no one else
can see.”
Your Challenge (Mine Too)
1. Paper, paper, paper
2. Excel based analysis
3. Manual tracking
Value of data is hidden
Uncover Data to Drive Decisions
Chaotic
•No Standards
•No master data plan
•No strategy
Reactive
•Standards established
•Master data plan identified
•Easing of communication
Defined
•Master data plan executed
•Root cause for issues can be tracked and measured
Proactive
•Continuous feedback loops
•Root cause analysis feeding into feedback process
•Information silos removed
Predictive
•People, process and technology working together
… and be like Brad Pitt
You’ve Pretty Much Got 2 Options
Option #1
Home
Grown Apps
• Build From Scratch
• Internal Dev Resources
• Existing Tools (CMS, Database, ERP etc…)
The possibility of “Perfect Fit.” Custom software tailored to the organization
Potentially lower initial cost (reuse existing tools)
Pride of Ownership – potential for internal knowledge asset
Pros of Building Your Own
9
• Shortage of EHS and Quality experience
• Learning curve (User experience not a priority)
• Cost of ongoing innovation
• Cost of ongoing support
• Staffing to meet project scope
Cons of Building Your Own
10
In Fact
U.S. businesses spend over $300 billion annually
trying to develop in-house solutions.
Only 29% of projects succeed, while nearly 52% are
highly challenged and 19% fail outright.
* The Standish Group International
More Importantly
Only addressing the “Table
Stakes” of data management
… NOT like Brad Pitt
Option #2
EHS and
Quality
Platforms
• Purpose built platforms to manage EHS and Quality data
• Build in subject matter expertise
• Value added capabilities
• Perceived loss of control
• Tradeoffs between the perfect solution and the vendor offering
• Failure to engage in-house IT resources
• Knowing what questions to ask new vendor to minimize risk
Cons of Buying
14
Experienced EHS and Quality vendor can deliver quickly
Top vendors bring real-world experience (this is what others like you have done)
Validated industry successes
Lower total cost of ownership
Pros of Buying
15
Go Beyond The “Table Stakes”
Chaotic
•No Standards
•No master data plan
•No strategy
Reactive
•Standards established
•Master data plan identified
•Easing of communication
Defined
•Master data plan executed
•Root cause for issues can be tracked and measured
Proactive
•Continuous feedback loops
•Root cause analysis feeding into feedback process
•Information silos removed
Predictive
•People, process and technology working together
Home Grown Apps Commercial Platforms
• BA Blacktop’s incident rates
dropped from 7.18 to 1.38
per year & spills reduced
58%
• Agnico Eagle’s accident
frequency rate dropped 50%
• Smurfit Kappa saw a 58%
reduction in lost time
accidents
• Boral Bricks experienced
63% reduction in recordable
incidents
Client Success - EHS
• Versabar saw a decrease of
39% in their cost of quality
• Rapid-Span estimated an 80%
reduction in time to compile
nonconformance summary
reports
• Nexteer streamlined the
management of 1,400 suppliers
worldwide
• Town of Ajax was the first
municipality in North America to
achieve ISO 9001 certification,
managing more than 10,000
documents
Client Success - Quality
Any Questions?Because that was a lot of information.
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