How to implement a smart ERP system?

How to implement a smart ERP system?
How to implement a smart ERP system

In a business process improvement project, smart use of ERP puts the focus on five areas:

1. Project organisation. An ERP project begins with a thorough organisation of the project-including organisation of business process owners to design the project scope, objectives, and measurements for the engagement.

2. Current state analysis. To fully understand what’s needed, the approach then turns to an analysis of the current processes by gathering key performance metrics and analysing their value, such as productivity, quality, overtime, and inventory. The team develops business process mapping at a functional level for such operations as quote to order, order to cash, and procure to pay.

3. Visioning and education. To arrive at the definition of the desired future state, the next step is to look at what is possible with a new or upgraded technology solution. Business process education brings industry best practices to construct the future state.

4. Future state development. Transformation follows with a laser focus on designing a future state that takes advantage of the new processes and opportunities afforded by new technology. This type of business process reengineering is specific to each business process flow and identifies gaps between the current state and industry best practices.

5. A business case for change – As the future state vision is honed and perfected, the team then takes this vision and translates it into a credible business case for change.

Smart use of ERP needs buy-in

Engaging top management is vital to facilitate to intelligently adopt ERP. A common risk in failed implementations is the lack of top management commitment and support. In order to get and sustain buy-in from top management, it is important to make them realize adopting ERP tools and concepts will help assure the company’s viability in the long term. Benefits of a well-planned ERP implementation effort include:

  • Alignment of operations and corporate strategy
  • Clear enterprise-wide communication
  • Increased throughput on the shop floor and front office
  • Reduced costs by the elimination of wastes
  • Increased flexibility in satisfying changing customer demands.

Companies face challenges in implementing ERP concepts. Having a systemic approach to the implementation, incorporating education at all levels along the way and focusing on change management will help assure success in the adoption of ERP concepts and the changes required be successful.

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Source from Ultra Consultants

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