You might have a comprehensive project plan for your enterprise resource planning (ERP) implementation, but do you have a benefits realization plan that outlines the benefits you hope to achieve? Have you defined key performance indicators (KPIs) for these benefits?
By setting KPIs for your ERP project, you can ensure that the new platform delivers the ERP benefits you expect.
Today, we’re sharing some of the business benefits you might expect from an ERP project.
What are Key Performance Indicators?
Put simply, KPIs are measurable values that indicate how successfully a company is meeting its core business objectives. You can set KPIs for any project to track its effectiveness, and an ERP project is a great example.
When you define expected ERP benefits, you can make the right software selection decisions and process improvement decisions. You can also take corrective measures throughout the project to get back on track if you notice you’re straying too far from your goals.
The 2022 ERP Report
This report summarizes our independent research into organizations' selection and implementation decisions and their project results.
4 ERP Benefits You Could Realize
Before you even select a vendor, take the time to think about what your company needs to gain from this ERP implementation. To help you get started, let’s look at a few of the benefits that large, mid-sized, and even small businesses can realize from an ERP platform.
1. Real-Time Data Access and Stronger Reporting
If your current system is a maze of intranet files, ERP software can make a transformative difference. Not only will your customer service improve with real-time access, but you can keep a close eye on every facet of your supply chain.
Increasingly, ERP vendors are including business intelligence (BI) capabilities in their software platforms. This allows users to view both historical and current data on customized dashboards and take advantage of predictive and prescriptive analytics.
2. Cost Reduction
While an ERP system might be a significant upfront expense, the right system can save you money in the long run. Many of these savings come in the form of increased productivity.
Take data management, for instance. With ERP software, you only have to input data once. That means your employees can spend less time on manual work and more time on mission-critical projects.
At the same time, you can eliminate many other hands-on, administrative processes in HR, sales, and range of other departments.
3. Improved Data Security
Another potential ERP benefit is the improvement of your existing data security strategy.
With ERP software, you can define your own parameters around what types of data should be used, shared, and accessed. Then, you can create controls that ensure only authorized users are able to gain access.
In addition, you can use the system’s internal database to create centralized backups that will protect your most critical, sensitive data. This is true whether you install an on-premise or cloud ERP solution.
4. Increased Customer Satisfaction
With ERP automation, employees are free to focus on revenue-generating tasks.
In your customer service department, this means that representatives can spend more time interacting with customers and less time on cumbersome spreadsheets.
They’ll be able to pull up a caller’s record in a matter of seconds, rather than transferring their call indefinitely until someone can access the right information. Then, they can tailor their conversation around that person’s specific needs.
When this process is simplified and streamlined, your customers will notice the difference.
How to Realize These ERP Benefits
As you think about setting KPIs for your project, keep the above benefits in mind. Make these your top-level goals, and then define more granular benchmarks and milestones that can help you get there.
However, setting goals is only half the battle. To achieve ERP benefits, you must assess your current state, looking for pain points and opportunities for improvement.
You might end up needing business process reengineering, especially if you’re considering digital transformation.
Ultimately, if you want to achieve expected benefits, you must ensure organizational alignment around project goals. All stakeholders should understand the time, money, and resources required to design and implement a solution that supports organizational goals.
Set KPIs and Maximize Your ERP Investment
You deserve to reap all the ERP benefits that your software can provide.
However, many organizations fail to outline expected benefits before ERP selection. As a result, the process improvements they make barely contribute to their bottom line.
Our ERP consulting team can help you define a digital strategy and goals for your project. Contact us below for a free consultation.