Maximizing ROI from an ERP System
Implementing an ERP system is a significant investment for a business, and the costs are nothing to sneeze at. Although, ERP software is a transformative investment for a business to remain competitive and efficient in the ever-evolving market landscape. The return of investment (ROI) for an ERP system can be complex to assess because multiple factors play a role. Ensuring an ROI from it involves careful planning, execution, and ongoing management.
Here are some key steps to maximize ROI from an ERP system:
- Define Objectives and Goals: What are you looking to accomplish with the ERP system. Identify key performance indicators (KPIs) you can use to measure success.
- Conduct a Needs Analysis: Consider your organization’s needs, both current and future and ensure you select an ERP system that aligns with your business processes.
- Diverse Team Involvement: You not only need strong executive leadership support for the ERP project, but you should also involve key stakeholders and end-users early in the process to help ensure buy-in and that each the system is meeting department’s needs.
- Select the CORRECT ERP VENDOR: Particularly crucial step. Choose an ERP vendor that aligns with your industry, has a proven history, and references, and offers a solution that best fits your business needs. Do not compromise or skip this step.
- Data Quality and Migration: Ensure your data is accurate, complete, and properly migrated to your new ERP system. Poor data quality can be very harmful to the business.
- Standard vs. Customization: If you chose an ERP system that aligned well with your industry, you should be able to minimize unnecessary customizations that could complicate routing system maintenance and upgrades.
- Continuous improvement plan: Regularly review and optimize your business processes to ensure you are operating at total efficiency.
- Monitoring and Evaluating: Use different monitoring mechanisms to track the system’s performance against your established KPIs and adjust as needed to ensure continued effectiveness.
- Cost Control: Monitor that the decisions and changes you are making along the way are staying within your budget. Consider both direct and indirect costs, such as training and downtime.
To get a true ROI measurement, you should regularly assess the actual benefits achieved against the initial investment. Compare the costs and benefits and continue to do so over time to ensure ongoing value and areas that can better be optimized. By following the above key steps and staying committed to the cause, your business can enhance your changes of realizing ROI from your ERP system.
If your business is looking to implement a new ERP system, give the expert team at 2W Tech a call today. We are an Epicor Platinum Elite partner and have been working with Epicor solutions for over 35 years. Our team has experience ensuring our clients can maximize their ROI from their Epicor Kinetic ERP and other Epicor investments.
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