Optimize the existing system or time for a new system ?

Unless your organization has completely outgrown its ERP system, optimizing the existing software may be a very feasible option. In fact, our experience with many of our clients is that their operational pains lie not in the system itself but in broken business processes and misuse of the system.

To determine whether or not "fixing" your current system is more feasible than implementing an entirely new system, there are several questions to ask:

1. Is the organization using the full functionality of the current system?

2. Is the organization using the most recent version of the system?

3. Do employees have a strong understanding of how to use the current system?

4. Are business processes and workflows well-defined?

5. Is there employee or executive resistance to the current system?

6. Is there a general sentiment that the organization has outgrown the current system?

7. Are there significant opportunities to improve the company’s business processes?

8. Is the company willing to invest in the resources required to implement a new system (time, people, money, etc.)?

If an organization can answer yes to most or all of the above questions, then chances are it may be time for a new system. If an organization answers "no" to one or more of the questions, then it may be better served investing in an ERP benefits realization plan rather than a full-blown ERP initiative.

Here are four steps to achieve ERP benefits realization and optimize the benefits of a current system:

  

Identify and prioritize problems in the current business and technology environment.

The first step is to identify the pain points or problems with the processes and system, which is frequently achieved during a post implementation audit (detailed below). Common categories of problems include broken business processes, lack of employee training/communication and poor system functionality.

Identify and quantify opportunities to improve business processes.

In order to ensure that the business achieves optimal benefits from the system, an organization needs to define opportunities to improve its processes. This step should entail documenting business processes, identifying opportunities for improvement and quantifying the business benefits of improving those processes. In addition, an organization should audit the configuration and customization of the system to ensure alignment with its business processes and requirements.

Define root causes and solutions for problems with the current system.

After steps one and two, the team should be in a position to define the root causes and potential solutions for the highest priority issues. By the end of this step, an organization should have some "low hanging fruit" to pursue to improve its business and technology operations.

Implement the ERP benefits realization plan.

Once root causes and solutions have been identified to address the various process, people and technology issues an organization is facing, it is time to begin implementation of a true benefits realization plan. These solutions should be treated just like any other project with clear tasks, milestones and ownership.

Successful ERP Implementation is merely the first step

Even in instances of flawless implementations (if they do, in fact, exist), the process of realizing business benefits from an ERP system does not end at go-live, Instead, go-live is merely the first step in the long journey to leveraging ERP software to improve business operations. After the initial implementation, an organization should examine its own operations to make sure the business processes are still going well. If the company is increasing its sales or constantly expanding via organic growth or acquisition, the ERP system needs to be able to keep pace.

Also, consider the effect the new system has on the organization. Are people using the system effectively? Is the software making the business more efficient? Is the system adding value to the organization? These are questions that deserve focus both before and after go-live, which is why it is important to have a solid user support program in place to supplement the technical cutover activities.

Although pre-go-live end-user training can mitigate many of the risks that organizations face at the time of cutover, there needs to be additional reinforcement after go-live. For example, core team members (and any identified "super-users") should be leveraged to provide general support and answer simple, process- and system- focused questions. Immediately after go-live, approximately 80-percent of end-user issues are related to a lack of understanding of the software’s functions rather than a problem with the system. Super-users can help alleviate these issues.

In addition, providing accessible tools (e.g., cheat sheets, training documentation and online tutorials), will serve to make employees more comfortable with the system. Refresher training should also be provided as needed on an on-going basis.