A successful implementation strategy for organizations upgrading or changing their current ERP program should include considerations of the current state of their software and how those situations might be improved.
Businesses can have needlessly complicated ERP software, whether due to uneven implementation practices or unforeseen developments in company growth and change. This can be an especially significant problem for manufacturers and fabricators that have tried to tie together a variety of data streams, from finances to inventory levels and production counts. When ERP becomes too involved, the benefits normally provided by the programs begin to decrease as confusion grows and operability becomes an issue.
SearchManufacturingERP recently presented the results of results of a study on ERP setups conducted by researchers APQC and consultants Cognizant, showing that many businesses have less than optimal systems in place, often using more than one platform and different applications and model versions.
Modular ERP software can reduce complications and redundancies
APQC's research found that 70 percent of organizations have some kind of significant variance in their ERP setup – be it different program versions, data models, or other components. This sort of setup creates operational inefficiencies by limiting the interaction of different parts of the system and reducing the depth of business insights provided. Additionally, 53 percent of respondents are using more than one ERP system.
For many businesses, the solution to these disparities can be the use of a modular platform like Microsoft Dynamics NAV. By adding individual components onto a strong base program, businesses can customize their ERP experience without having to use more than one software program. Financial concerns, production counts and time tracking software can all be added in a manner that provides the most benefit to the organization, including across-the-board implementation that eliminates the pains associated with using multiple systems.
The value of cost reduction
Bringing down the costs of doing business is one of the most common pieces of ERP strategies, according to research from Aberdeen Group. Businesses that had this component in mind when they originally instituted their ERP systems should consider the current state of their software. If the inefficiencies created by simultaneously operating multiple systems are driving up costs, then switching to a more holistic solution should be a priority.
Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing: Defining the ERP Strategy" from the DMS website today.