Are you due for an ERP performance review?
Once ERP is implemented, most organizations think they have done their part to make business processes efficient. Can't really blame them since the transformation to the new system required a lot of time from many resources. But what's next? The widespread practice is to evaluate the performance of the software with the same tools used before implementation, which includes the total cost of ownership (TCO) and returns on investment (ROI).
Ask yourself the questions below
1. How old is it? Is the software continuously improving? Is the system supporting all the business processes? If not, it is time to upgrade to a new version.
2. Is the software user-friendly? Are users enthusiastic about it, especially the millennials staff members? With a complex software, managing employee turnover and training new employees can be challenging and costly.
3. Are the key users fully trained? If they are not using all available modules, company loses the opportunity to streamline processes, increase productivity and meet business objectives.
4. Is your software integrated with external systems, applications, customers and suppliers? Accumulating valuable information in a centralized location enables you to make data analysis, increase productivity and improve customer satisfaction.
5. Is the system in line with how we do business today? Does it provide you with real-time data, business intelligence, customized dashboards, graphical dispatch boards enabling you to make informed business decisions?
Use some tangible indicators
Just like TCO and ROI, these are some indicators that are completely measurable and provide you a great insight into the performance of your ERP system:
- Sales revenue
- Repeat sales
- Sales conversion rates
- Customer retention rates
- Controlled Inventory
- Customer Satisfaction
- Data Accuracy
Get the full value and return on your ERP investment. Like your products and services, this also requires a continuous improvement approach. No one can predict the future or how things will look like in five years, all we know that it will be different from today. The only constant is change.
Noor Shaikh is Marketing & Sales Executive in North America at Dysel and knows all about the challenges equipment dealerships encounter when it comes to ERP software.