There are several factors that an organization can take into consideration for optimizing its ERP deployments
â€¢ Shifting the focus from ERP spend to ERP ROI
Regular measurement is critical for the success of an ERP optimum utilization effort. Companies need to categorize and institute performance measurement practices that will show, precisely, how things are operating. Organizations should shift their focus from investment on ERP to the Return on Investment (ROI) it provides.
Moreover, the organizations should leverage exceptional program management to review metrics and track benefits, and also ensure that these are measured against the pre-implementation environment.
â€¢ Involvement of Executives
Like any large-scale initiative, an ERP implementation requires extensive involvement of executives. Communication from senior management pertaining to vision, strategy and opportunities for business transformation, as well as tangible and intangible ROI expected from ERP applications, is critical for the success of any ERP initiative. An organization should have an efficient team with the power and authorization to ensure that the ERP implementation adheres to the company's vision and business requirements, as well as with current market dynamics.
â€¢ Involvement of users' in the implementation program to ensure success
To ensure widespread adoption of ERP across the organization is to involve both the business and IT professionals throughout process and implementation. They will also be more comfortable with the application and workflow post implementation.
â€¢ Focus on processÂ Re-engineering
Organizations often tend to give less importance to process reengineering during ERP implementations. The prime focus of business transformation should be process optimization and tailoring the functionality to the organizational vision.
It is also important for an organization to measure the process effectiveness and efficiency regularly, so that they can adopt and enhance best practices extensively across the organization.
â€¢ Focus on long term business improvements
ERP implementations deliver greater ROI over time when scalability of the application and process & function integration aspects, which impact business performance, is kept in mind. The application should feature a robust technical architecture, effective data management practices and a strong business intelligence structure that is aligned with the current business landscape and considers future business expansion initiatives.
In the current economic downturn, companies demands to get the maximum possible utilization of their ERP systems.