Posted on

Why regularly review your ERP Application?

(AIS) Advisory Is Solutions Inc.

Your ERP (Enterprise Resource Planning) system must be reviewed regularly so that your system and business processes are operating efficiently and at Peak Performance. Why? Because system applications must respond to the continuous demands of your business and the better your applications are operating the more efficient your staff will be. System performance can also be attributed to data integrity and attaining real time information so that all levels of management can make timely and the best decisions for their organization.

Continuous review and maintenance is vital just like maintaining your car. If you want your car to run efficiently you must maintain it so it increases the life of the asset and most of all it operates at the highest performance. No one wants to be stranded with a broken vehicle on a highway much like not being able to access business information within your ERP when you need to.  

As a business owner, I require the facts so I can manage my business operation. Lack of facts almost always insights danger about your company’s performance and how you need to react to any going concerns.

When performing an ERP review one must consider at least 4 Business Areas to deliver organizational performance:

There are many sub-components to consider within each Business Area when reviewing your ERP / IT System as shown below:  

The following 3-Step process should be evoked to help you with your ERP review and respond to business challenges:

Typical conclusion from the 3-step evaluation process: If organizations are not getting the highest Strategic, Operational, Financial, and Technology value from their existing ERP then one will typically get a higher benefit from system replacement but at a higher cost as depicted in the grid below. The higher cost from ERP replacement is also higher in year 1 but the benefits will continue to rise with costs reducing in future years.

Benefit vs Cost

Conclusions: Organizations should always perform internal reviews of their current ERP application. Through proper system maintenance in collaboration with your internal team and ERP vendor your organization should realize the maximum throughput from your ERP, leveling up your system efficiencies and being ready for any business challenges that come your way.

Leave a Reply

Your email address will not be published. Required fields are marked *