Issue 3: ERP Optimisation: Are you wasting your Investment in ERP?

 Are you wasting your investment in ERP and what should you be doing about it? Lumenia Executive Briefing

As a senior decision-maker in an organisation, there can be nothing more frustrating than having invested significantly in an ERP solution only to find that “the system” is still being blamed for all sorts of issues long after the implementation project has been wrapped up. Despite putting huge effort into the ERP implementation project, life with the new system is a big disappointment, expectations have been dashed and, even worse, the situation is deteriorating further over time. In many ways it feels like the investment in ERP has been wasted.

But it doesn’t have to be this way, and there is something you can do about it.

The latest Lumenia Executive Briefing entitled 'ERP Optimisation: Are you wasting your investment in ERP?':

  • Discusses critical challenges confronting ERP environments prior to optimisation
  • Provides a list of symptoms of suboptimal ERP systems
  • Outlines the top 10 pain-points documented during a real ERP optimisation project
  • Examines proven strategic approaches to ERP optimisation
  • Includes real scenarios where Lumenia have optimised clients’ ERP systems.

ERP implementations are expensive; therefore senior executives in any organisation will naturally expect the business to benefit from the investment. The benefits of implementing ERP are generally classified under a number of headings:

  • quantifiable financial benefits,
  • non-financial but quantifiable benefits,
  • non-quantifiable benefits, and
  • strategic benefits.

Even if the original rationale for implementing the new system was almost entirely strategic, it should still be possible to identify ways in which it has delivered quantifiable benefits and to clearly articulate the difference it has made to the business.

Regrettably for many ERP implementations there is little or no focus on analysing expected benefits before the project starts, and even less on ensuring those benefits are delivered as part of the implementation. This is a huge mistake, as the cumulative effect of quantifiable financial benefits over time can be very substantial. For example, a benefit that delivers a saving of just €1k per month equates to a €60k benefit over 5 years. Even a small number of relatively small benefits will make a very sizeable contribution towards paying back the cost of the investment.

An ERP software solution by itself is not (and never will be) a solution to all the world’s ills. ERP systems need people to operate them, to feed them with data, to process transactions, and to provide the technical infrastructure on which all of this activity takes place. Putting the right structures in place to operate ERP is just as important as the system implementation.

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