Secrets to a Successful ERP Implementation
Enterprise Resource Planning (ERP)
ERP (Enterprise Resource Planning) is an integrated suite of software that helps you run an entire business, including processes in finance, manufacturing, supply chain, services, procurement and many more.
How does the ERP system work?
An ERP system is made up of different enterprise solutions, typically focuses on one business area, you can combine different modules to meet your needs. ERP uses a centralized database for varied business processes to reduce manual labour and to simplify existing workflow. It also contains dashboards where users can look at real-time data collected from all across the business to measure productivity and profitability.
By using an ERP, data from multiple departments can be easily shared and visualized across the organization. This wealth of information and simplification can assist in the development of business goals and reduce the amount of time your employees spend on tasks that can be automated.
ERP typically focuses on order management, manufacturing and financial activities. In the same vein, some ERP system architectures are better suited to manufacturing, others to services firms.
Moving forward, you have to:
Pick the Right Team
While the choice to put in or upgrade an associate ERP system is also prudent and will facilitate manage these processes, the choice concerning who ought to lead the project isn’t perpetually the most effective selection.
The problem created with this approach is that accounting and monetary reportage square-measure backward-looking functions. They record what went on. They are doing not facilitate, optimize or improve the core business processes proactively. Over-emphasizing and prioritizing finance’s pain-relief desires could miss important needs of the remainder of the business.
Optimize the company’s core business process because unless the company’s core business is optimized well before they are automated, no enterprise software is going to help.
As per the study of McKinsey Global Institute and London School of Economics study:
- Improving management practices increases company productivity by 8 percent
- Improving the intensity of IT deployment increases company productivity by 2 percent
- Doing both increases company productivity by 20 percent
Hence, before automate fix your organization and processes.
Recognize the needs of your business and define what process needs to be optimized and then automated to make the business generate cash. Create a clear understanding of what it is you need to accomplish with your ERP.
Consider bringing third-party experts to diagnose and fix processes then use them to implement the appropriate system modules.
Approx 90 percent of the challenges with ERP deployment revolve around poor process optimization and ineffective module implementation.
To optimize ROI from an ERP, we suggest
- Optimize your core process
- Re-implement or optimize the core business process ERP module before tackling additions
If you go forward with an ERP module be patient, through and implement in the proper order-process optimization first, systems implementation second, scorekeeping third.