Tips For Implementing an ERP System

Posted on: December 22, 2014


Topics: General

ERP System Implementation

Maximizing ROI in the midst of implementing a new ERP system can be challenging. Here are further ways you can ensure this process is smooth, swift, and successful.

6. Define Key Performance Indicators

From the beginning and throughout the implementation process, defining clear KPIs is necessary to guide and direct the project. Frame quantifiable metrics that:

  • Reflect the performance of your organization in achieving its goals and objectives
  • Reflect strategic value drivers rather than just measuring non-critical business activities and processes
  • Create accountability and track progress
  • Align to all business units, departments and individuals with clear targets and benchmarks
  • Support overall goals of the business while each reflecting their own performance
  • Can be measured and compared against companies in your industry. Trusted advisors with your niche industry expertise can help.

Establishing clear KPIs allows steering committee and implementation team members the ability to access quickly the status of implementation as well as a measurable means of indentifying trouble areas.

 7. Track Quantifiable Benefits

There are many benefits of ERP that can be difficult to quantify. Organizations should track qualitative improvements resulting as a direct result from their ERP system, such as:

  • Error-free processes
  • Better decision making
  • Reduced inventory levels
  • Improved customer, partner and supplier satisfaction

8. Communicate Expectations

The first step to fashion a communication of expectations is the creation of clear KPIs. Once KPIs have been defined, identify leaders and champions to communicate expectations.

The communication process can be difficult to achieve. Maintaining the clarity of KPIs is absolutely critical to ensuring uniform response to training and end user performance. Accordingly, organizations must be willing to adjust their assumptions when new information comes to light and to communicate why a metric or benchmark changed. It is imperative that the decision making process and lines of communication to end users are kept open.

9. Measure ROI Implementation

To optimize benefits from an ERP system, organizations need to ensure before they implement that they have an effective set of ROI measurements. Determining ROI pre-and post-rollout is key to achieving success.

Benefits, however, cannot be expected right away. Significant factors of the implementation process can obscure ROI. In the first weeks of using a new system, users are still learning and making mistakes. In most instances it takes up to two months to start seeing results in ROI and business benefits.

10. Project Management

An experienced Project Manager using a proven methodology with a clear understanding of objectives, project timelines and deliverables can have a tremendous impact on the outcome of the project. Project Management is critical to the success of an ERP implementation.

Ensure that your implementation team is made up of people knowledgeable about every area of your business.

When implementation of a new ERP system is managed efficiently by people knowledgeable about your business, KPIs can be tracked regularly providing timely insight on progress, ensuring a faster return on investment.

Visit to learn more about ERP systems and how to select the right one for your business.