5 benefits of an ERP system review

A system review is a health check for your ERP system.

supply chain management controls - ERP - Enterprise Resource Planning
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As we age, our bodies feel the aches and pains of time. When something is seriously wrong and interrupts with our physical function, we visit the doctor. We know a medical health check is the right thing to do.

Enterprise Resource Planning (ERP) systems also start to show their age over the years. Senior managers tasked with pulling ERP data for critical business decisions become aware that the system isn’t performing to its optimum level. Processes that used to run smoothly begin to lag, and as a result, efficiencies can suffer.

If not dealt with early enough, there may become a time when your ERP system starts to cause unplanned for business disruptions that negatively affect revenue.

Don’t wait until you reach this point. If data directors are starting to feel the drop-off in quality, communication can become fuzzy. The only solution is to order an independent ERP system review health check.

Here are the top 5 clear benefits to your business of an ERP system review health check.

1. Know the health of the system

The first benefit of an ERP systems review is getting a chance to see the big-picture view. A checkup gives you an idea of how efficiently the system is working for your business.

Do the operational processes allow your business to maintain peak performance? Are there opportunities for improvement? How is the integrity of your data and reporting accuracy?

By answering all these questions and more, businesses are able to identify areas for improvement. Furthermore, senior managers have the opportunity to label conflicting operations and point out system shortcomings.

2. Know the maturity level

The three stages of maturity for ERP system usage are well-defined.

Stage one is the initiation of the ERP project.

Stage two is the post-implementation when functionality is fully-exploited across the organization.

Stage three is when the ERP system is normalized into business operations. This is the stage where strategic value is being gleaned regularly from its use.

By determining the maturity level of your ERP system, experts can assess how the system is performing in relation to the market. This lets all personnel know if the system is at optimal performance levels, not merely on a system-wide basis, but also in regard to integrated software and peripheral applications.

Knowing the maturity level of your ERP system is critical to your ability to improve. This quantifies the benefits for each department in the company. An ERP system review assists with providing appropriate and measurable progress based on your history with the system. Pinpointing the maturity level of the system helps to accurately assess financial projections based on this feedback.

3. Reduce downtime due to ERP performance issues

Department directors love ERP health checks because they provide information about what the business currently does and how to accurately reflect this in the ERP. In essence, the key people in the company who are pulling data from the ERP and handling the business resources get to collaborate directly on enhancing the overall system performance.

That said, executives and data directors are not people who can wait around for when tech issues crop up. Their time is valuable, and the topline data they receive should be delivered quickly so that your business doesn’t lose momentum. An ERP system health check lets a company solicit the correct expertise to reduce downtime from performance issues.

An ERP system review gives these decision makers the opportunity to be heard, a chance to improve the business in a tangible way, and a way for the company to increase job satisfaction of those managers who work in the system on a regular basis. It also ensures that the topline data handlers at the executive level aren’t left waiting when they should be moving forward.

4. Ensure integrity of your data

Running an ERP health check leads to improved data integrity, therefore increasing reporting accuracy and speed. Part of a typical check involves reviewing master setup files and transactional data files. Data managers get the chance to imagine implementing a ‘clean’ workable system.

With that feedback, ERP consultants can suggest ways for your business to move forward based on your resource management budget.

5. Decide on next steps

Ultimately the purpose of performing an ERP system check is to decide what to do next. There are three general outcomes:

  • Keep the system as is
  • Upgrade with addons or elect an updated version of the system
  • Shop for a new system

Even in cases when the current system is performing well, an ERP health check is valuable. As ERP implementation moves on in maturity, system consultants can offer quick fixes that can make huge differences to business processes. These immediate financial savings often neutralize the cost of the health check itself.

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