How Can You Measure the Value of ERP?

Apagen’s long-term expertise tells us that ROI from an ERP project is dependent upon correct planning utilizing a 5-step ERP methodology:

1 — Forming a staff of process owners to function the ERP project staff. This crew, led by its chief course of proprietor, develops a technique to evaluation all enterprise processes impacted by an ERP resolution. It identifies all features by division and enterprise course of circulation and gathers and analyzes experiences from gross sales, shop floor information assortment, stock, accounting, high quality, and many others.

2 — Documenting the present state of enterprise processes to search out strategic areas for enhancement. An ERP project is the best time to take a tough take a look at enterprise processes that will have developed in numerous methods over time with little documentation. Now is the time to reexamine all processes to find out their strategic worth, and to determine waste. By documenting the present state, the crew finds the methods to completely leverage the greatest practices afforded by trendy ERP solutions.

3 — Educating enterprise process owners on greatest practices of state-of-the-art ERP solutions. A complete and strategic strategy to training is an essential ingredient for profitable technology transformation. It’s tempting to skip this step, nonetheless, working with trade analysts, expert consultants and distributors will illustrate greatest practices. In most circumstances, the crew will determine options to the issues of wasted processes, redundant information, and pointless guide steps uncovered by the current-state mapping and documentation train.

4 — Reviewing present processes to outline the desired improved future state. Here is where the staff develops best-fit enterprise process flows. Waste in present processes is discovered and finest practices and future state necessities are recognized as the crew creates the “to-be” maps of the future state. The crew appears to be like at methods of decreasing waste inside present programs, identifies midterm enhancements that require IT funding and spells out the purposeful enhancements enabled by the new workflow from the ERP.

5 — The last step is making the enterprise case for change. The staff evaluations the record of advantages recognized in the earlier enterprise process enchancment steps, documenting ROI for every. It’s important to link the improved processes to improved performance by optimizing present state metrics. The team can doc how the funding in a brand new ERP system will cut back stock prices, cut back stock-outs, enhance cycle time, and many others.

Business following these 5 steps throughout an ERP Solution selection project will obtain appreciable worth from their new ERP Software. With correct planning and execution, manufacturers and distributors will meet their enterprise process enchantment targets, whether or not it’s including automation or decreasing cycle time, for true enterprise transformation.