5 Ways to Optimize an ERP Solution for Business Processes

No business looks forward to selecting an enterprise resource planning (ERP) solution—or implementing one, for that matter. In fact, most decisions about the acquisition of an ERP solution are the result of the obsolescence of a company’s existing systems, hardware, and software. In addition, most of the focus of ERP is primarily on selection and implementation, not the actual use and optimization of the system, which would explain why most businesses never achieve any significant return on investment from acquiring an ERP solution.

Other reasons for a business never fully benefiting from an ERP solution include:

• The ERP system being set up to reflect outdated or inefficient business processes;
• Failure to adequately normalize and map data from the legacy system to new system;
• Too much focus on IT and technical requirements and not enough on business processes;
• Inability or unwillingness to adapt to industry best practices;
• The Implementation strategy not being fully understood or well defined;
• Lack of buy-in or resistance to change; and
• Inadequate training and preparation.

ERP is not the end-all, be-all or “set it and forget it” solution. For a business to achieve all the promises of ERP, decision makers should be focused on optimization. Some of the questions business leaders should ask themselves are:

• Is our ERP solution providing the metrics and data we need?
• Are our data usable and reliable?
• Is our ERP solution helping our business realize cost savings?
• Is our ERP solution helping our business maximize efficiencies?
• Is our ERP solution helping our business innovate?
• Is our ERP solution helping our business improve our product or service?
• Is our ERP solution helping us do what we do better or smarter?

To optimize an ERP solution for business processes, an organization must:

1. Perform a full bottom-up assessment of the business and system functionality;
2. Assess business processes in relation to best practices and the ERP’s out-of-the-box processes;
3. Interview users and assess their working knowledge of the ERP system;
4. Identify root problems and take corrective action; and
5. Establish a baseline of today’s business needs and a roadmap to tomorrow’s vision.

Obviously, the successful selection and implementation of an ERP solution is critical, but the essential goal of ERP is optimization. Business requirements change, whether because of growth, regulations, mergers, or new products and services; therefore, businesses need to periodically optimize their ERP systems to maintain their relevance in an ever-changing and competitive market.