The Competitive Advantage of a Single ERP Platform
Organizations in manufacturing (product-centric industries) extend their ERP strategy into operational areas, such as order management, manufacturing and supply chain, to maximise operational efficiencies. High-quality master data is needed to make decisions on all company levels.
The new ERP system should lead to more efficient production of goods leading to greater profit margins and a comparative competitive advantage. This is a challenge to multinational companies of all sizes, in particular, but one which all enterprises struggle to extract business value.
Specifically, the single ERP platform should improve financial management and enable the business to respond to market changes. Streamlined management of financial master data results in improved cash flow and profitability.
Bottom line: Enterprises reap benefits with a single ERP platform in accounting and financial management. But reality is that many ERP projects fail to deliver and the economic losses can be significant. It is possible to minimize risk and secure success following a concrete set of steps.
My own experience implementing multiple large projects over the past 10 years is that there are three critical success factors; communication, change management and control over master data. So how do you ensure that you control these areas? Ask yourself these questions as you begin the journey.
ERP Success Checklist
- Have the local BU requirements and KPIs been defined and communicated?
- Do you have mechanisms in place for employees to provide feedback and input where people feel free to express themselves?
- Is project leadership actively listening to employees and removing obstacles to success?
- Change management drives the successful adoption and usage of change within the business. Do employees understand why the business needs this change and how will it be useful to them?
- Are business processes harmonized and prioritized in change management?
- Do you have a plan for adequate on-site support after the go-live?
- Can you identify employees as Change Management champions to help your teams through the process?
- Has master data been harmonized across business processes throughout the entire company?
- How do you plan to handle integration and maintenance costs, and the effort to provide the required data, analytics and reporting?
- Do you have a master data management solution identified to help keep data consistent across your IT environment?
These are highlights of the discussions you should be having in your company when you start the journey towards a single ERP platform.
“Surround yourself with a trusted and loyal team. It makes all the difference.” Alison Pincus