Measure the Success of An ERP Implementation

To evaluate how well you have implemented your ERP, you need to keep track of the correct KPIs (Key performance indicators). Some of the most essential things to monitor or evaluate to measure the success of your ERP implementation are:

• Accuracy in demand forecasting

An efficient ERP solution should always be able to estimate future demand for your organization based on previous and current data. So, the more correctly your ERP can monitor this projection while simultaneously tracking progress toward those expected figures, the more effective the system is.

• Employee Engagement Metrics

One of the important methods to measure the system's usefulness is to see how your employees utilize it. Is it rapidly adopted or being used on a regular basis? Is it replacing all the older systems? Increased adoption indicates that the system is doing better than previous systems.

• IT Expenditure

An ERP system should reduce your spending on software and hardware, and eliminate the disruptions caused by legacy systems needing to be updated, patched, or integrated with yet another third-party application. Hence the reduction in IT spend is a measure of ERP implementation success.

• Migrating Data

The accuracy and completeness of data migrated is a critical factor for ERP implementation success because so many parts of the business will rely on this data. It is inevitable for some data to be lost during the implementation process. If these difficulties were not fixed to your satisfaction, then you need to contact your vendor as soon as possible.

• Inventory accuracy

Your inventory should more closely match the ERP figures if you do frequent inventory inspections.

• Sales and profit margins

These metrics should rise with increased customer satisfaction and reduced cycle times.

• Strategic benefits

Has ERP implementation benefited your company in terms of management control and understanding? Does it assist you in planning important movements in your project?

• Intangible advantages

Customer experience is a terrific statistic, but it's not the most concrete or easy to track. Examine how your ERP system is helping in this area.

• Calculating downtime

The best method to tell whether your ERP is doing its job perfectly is by keeping track of the downtimes of the system. This might be a useful method to fine-tune bugs.

• Internal and external Compliance

Internal or external audits, technological testing, management reviews, or continual checking are all terms used to describe compliance checks. These include the process of reviewing and analyzing the implemented ERP controls according to the security standards and risk management plans.

• Overall efficiency improvements

ERP software when implemented successfully dramatically improves an organization’s overall efficiency and productivity. Furthermore, the ERP software's numerous features assist and empower businesses to attain their goals more swiftly.

• Customer satisfaction

One of the primary reasons for businesses to implement ERP is to improve the customer experience. Thus, in order to assess the effectiveness of your ERP system, prioritize evaluating customer-related KPIs such as service consistency as well as long-term orders and shipments. Make it a point to keep track of both new and existing consumers.

Read this blog to know the 10 ERP Implementation mistakes and how to avoid them 👇🏻

 Are you prepared to begin your ERP implementation without making any mistakes? In case you need any help, do not hesitate to get in touch with us!

We would be happy to connect with you on how our ERP can help your organization. Get in touch with us at info@rheincs.com