Don’t Replace, Enhance! When It Makes Sense to Optimize Your Organization’s Existing ERP 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 fragmented business processes and misapplication of the system.

To determine whether or not fixing your current system is more feasible than implementing an entirely new system, there are several points your organization needs to consider, such as:

• Is the organization using the full functionality of the current system?

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

• Are business processes and workflows well-defined?

• Is there employee or executive resistance to the current system?

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

• Are there significant opportunities to improve the organization’s business processes?

For some great ERP Tips, check out Litcom in CIO.com!

• http://www.cio.com/article/733423/11_Tips_for_Deploying_ERP_Applications

  If your organization answers “no” to one or more of the questions, then it may be more successful optimizing its current ERP system rather than investing into a full-blown ERP initiative.

• 4 steps to optimize the benefits of your current ERP system

Step 1: Discover

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. Common categories of problems include broken business processes, lack of employee training/communication and poor system functionality.

In the discovery process it is important to:

• Conduct in-depth interviews with all key users.

• Review, document and chart current business end-to-end flow, identify transactional points, list all issues including the constraints.

• Review business processes in relationship to software and best business practices.

• Document the ERP system functionality.

• Review the level of basic ERP knowledge in all key areas.

• Risk management

• Prepare detailed value maps of all key business processes.

• Assess system parameters and the ability to meet business and departmental goals.

• Brainstorm policies, procedures, and business rules to support today’s business needs, as well as tomorrow’s anticipated growth.

• Assess ERP educational requirements, training / re-refreshers courses.

• Identify the functionality of new releases and develop a cost/benefit analysis.

• Identify areas which are ideal for optimization.

• Develop the optimization plan. (This plan is not a re-implementation of your ERP system. It is a comprehensive review and detailed study of all the features, functions and the alignment of your business systems to your current and future business processes.)

• Document results, review with upper management, and prioritize tasks.

Step 2: Prioritize

Prioritizing and scheduling enhancements/improvements are crucial in maximizing the benefits of your ERP system. A standard template is needed to assess and prioritize enhancements/improvements.

In the prioritization process it is important to:

-  Quantify business benefits and costs.

-  Enhancements that are easy to implement should be fast-tracked.

-  New enhancement requests should be assessed against the entire queue.

-  Plan to implement, demonstrate and communicate wins as quickly as possible.

Step 3: Implement

Implement the ERP optimization 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 plan. These solutions should be treated just like any other project with clear tasks, milestones and ownership.

Step 4: Monitor

Monitor the solution and identify the next topic of improvement and start the process over. The optimization process must also focus on dramatic improvements, concentrating on issues that will provide the largest return for the organization. Companies that recognize the value of their ERP systems must be willing to make the investments of time and money required to transform their ERP system into a strategic tool that aligns the applications and business processes seamlessly. The ERP system is not a magic tool which will transform everything overnight. Successful organizations have developed optimization efforts that over time allow them to become more agile and responsive to their clients’ needs.

For some great ERP Tips, check out Litcom in today’s CIO.com!
http://www.cio.com/article/733423/11_Tips_for_Deploying_ERP_Applications

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The Litcom Approach

Optimization projects should be planned and executed with the same diligence and accountability that was afforded the initial system implementation. Litcom helps organizations work through the intricacies of post-implementation optimization projects. Our consultants have extensive experience managing both implementation and post-implementation ERP projects. We have worked with a wide variety of ERP products as well as the functional areas within them. We have a comprehensive methodology that ensures we achieve the desired results. To find out how Litcom can effectively help your organization optimize its ERP investment, please contact us at info@litcom.ca.

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