Squeezing the Most from Your ERP Investment
As more and more companies continue to invest in ERP as a strategy for business growth, getting the most from their IT investment becomes a major concern for many organizations. In maximizing the returns on ERP investment, the key is for organizations to be proactive.
Most organizations before implementing a business management solution would have already defined their business goals. In addition to ensuring that the ERP purchased has the right features and functionality needed to meet those goals, companies must also implement the solution in an efficient and effective manner and develop metrics to determine how well the system delivers on its objectives.
To reduce the risks and hassles that come with implementation, including technical, security and date management risks, companies need to use a proven methodology that ensures the ERP solution is put into operation as quickly as possible. The right strategy will also help ensure that the ERP implementation is on time, within budget and fully addresses the organization’s business objectives.
You can’t improve what you can’t measure
Developing metrics that correspond to business objectives and using those metrics to measure progress is key in maximizing ERP ROI both initially and over time. Unless the results of ERP solutions are measured, organizations will never know if their business processes are getting better or worse.
Defining key performance indicators [KPIs]) that needs to be measured is crucial to determining the success of an ERP project. The right KPIs should reflect strategic value drivers and align all business units, departments and individuals with clearly defined targets and benchmarks to create accountability and track progress. When determining which KPIs to use, businesses should measure both factors that are of particular interest to their business and adopt overall vertical industry metrics, so they can compare their performance to that of other companies in their industry.
A trusted advisor such as Net at Work with expertise in a wide range of industries can help your organization pick out the right industry-specific KPIs.
For more tips on making the most from your ERP investment, download our whitepaper.