The Need for ERP Optimization

Posted on the 10 September 2012 by Litcom

The successful implementation of an Enterprise Resource Planning system (ERP) is not the final step for an integrated decision support system. The long term success of the project lies in the execution of a continuous improvement program, otherwise known as ERP Optimization. ERP Optimization is designed to assist you in identifying, driving and delivering measurable return on your ERP investment and lower the total cost of ownership. About 70% of all companies that have installed an ERP system fail to achieve the planned return on investment and 75% of all ERP implementations do not optimize the benefits available from their ERP system. Achieving full benefits, operational synergies, and maximum return on investment (ROI) from the system requires that an organization look beyond Go Live, and focus on improving performance. Performance enhancements are of particular importance in today's tight economy as companies strive to increase the benefits of previous technology investments.

The Need for Optimization

As an integrated decision support system, an ERP system should support any or all of a company's financial and operational processes. Often, the ERP system is relegated to serve as a financial reporting tool only. As a result, the system neither supports the management decision making process nor the seamless integration of all functional areas. Your ERP system is a prime candidate for performance optimization if:

  • the enterprise has not fully recovered from the post go-live performance drag within six months of the initial rollout, or
  • management continues to wait for the promised decision support information while a wealth of data sits idle in inaccessible ERP databases, or
  • streamlined business processes and anticipated productivity improvements remain elusive, while the organization struggles with informal processes and workarounds (for example Excel worksheets continue to be the primary information tool), or
  • there is low user acceptance because the ERP system is not meeting the immediate business needs, or
  • technical issues with software vendors are unresolved with no resolution in sight.

Why Litcom?

Optimization projects should be planned and executed with the same diligence and accountability that was afforded the initial system implementation. Litcom helps companies 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.

Want to find out more on ERP Solutions? Check out: http://www.litcom.ca/2011/06/effective-selection-and-implementation-of-software-solutions/

To find out how Litcom can effectively help your organization optimize it's ERP investment, please contact us at: info@litcom.ca