The ROI of ERP

Measuring the value of your ERP system.

Enterprise resource planning (ERP) is essential to help manage financials. Not only does it automate processes such as accounts payable and accounts receivable and generates reports but it also acts as a safe advisor when it comes to measuring the overall performance of the system.

With the purchase of an enterprise resource planning (ERP) solution, many companies overlook the application performance without establishing a specific performance metric, which makes it hard to gauge how well the product is working to meet objectives.

On a technical level, ERP software integrates a company’s departments and functions into a single program running on a single database. Alternately a human resource manager will define ERP as a view of how employees interact with each other.

Application performance measurement depends on the size of organization and depth of software change. Ideally, an audit should occur halfway through the implementation, again at three-quarters of the way through the implementation, and on completion. It is advisable to follow this with at 3-, 6-, and 12-month intervals.

Measurement Support

We at CES help you create a high-level systems road map before you implement ERP applications. We also help you set up specific metrics based on your industry because it is critical to identify an industry benchmark for turns before you can adequately measure how well your inventory management application performs. A performance metrics requires inclusion of improvements in inventory management, for which industry benchmark determines how well the software is performing against the standard.