Once ERP is implemented, many organizations think their work is done in making business processes more efficient. I can't blame them for that, because the transformation to the new system took a lot of time for many employees. But how to proceed? The commonly used methodology is to evaluate the performance of the software using the same tools used prior to implementation, including total cost of ownership (TCO) and return on investment (ROI).
Ask yourself the following questions
1. How old is the system? Is the software still being continuously improved? Does the system support all business processes? If not, it's time to upgrade to a newer version.
2. Is the software user-friendly? Are users enthusiastic about it, especially younger employees? With overly complex software, managing employee productivity and training new employees can be challenging and costly.
3. Are core users fully trained? If they are not using all available modules, the company is not taking advantage of all opportunities to streamline processes, increase productivity and achieve business goals.
4. Is the software integrated with external systems, applications, customers and suppliers? Collecting valuable information in one centralized location allows you to analyze data, increase productivity and improve customer satisfaction.
5. Is the system in line with how we work today? Does it provide real-time data, business intelligence, customizable dashboards and graphical planning that allow you to make informed decisions?
Use a set of measurable indicators
Like TCO and ROI, there are some indicators that are fully measurable and give you a good insight into the performance of your ERP system:
- Sales revenue
- Repeat sales
- Sales conversion rates
- Customer retention rates
- Stock figures
- Customer Satisfaction
- Accuracy of data
Get the most out of your ERP investment. As with your products and services, this also requires an approach based on continuous improvement. No one can predict the future and say what the world will look like in five years, we only know that it will be different from today. The only constant factor is change.
Noor Shaikh is Marketing & Sales Executive in North America at Dysel and knows all about the ERP software challenges for equipment dealerships.
