How to achieve process excellence with multiple ERPs - 3 Keys to success
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The document analyzes a survey of over 70 shared service professionals in the UK and Ireland regarding the impact of single versus multiple ERP systems on the quality of procure-to-pay (P2P) processes. Key findings highlight that while single ERPs offer better visibility and efficiency, 52% of surveyed organizations operate with multiple ERPs, often citing complexity and prioritization challenges as barriers to consolidation. The report suggests that utilizing third-party automation tools can help organizations with multiple ERPs mitigate pain points and achieve benefits similar to those experienced by single ERP users.
How to achieve process excellence with multiple ERPs - 3 Keys to success
- 1. About our respondents To summarise the data... are shared services organisations are still on their centralisation and standardisation journey are global or multinational companies INFOGRAPHIC REPORT How to achieve process excellence with multiple ERPs 3 keys to success Research brought to you by: ©sharedserviceslink and Kofax, a Lexmark Company 2015 73% 72% 27% In 2015 Kofax, a Lexmark company, and sharedserviceslink conducted a survey with over 70 shared service professionals in the UK and Ireland to explore whether the quality of P2P processes varied between those with single ERPs and those with multiple ERPs. About half of our respondents have a single ERP and half have multiple ERPs. In this report we analyse and compare processes using single and multiple ERPs, as well as examine how those with multiple ERPs use third party tools to improve their P2P process. Read on for our results While a single ERP system can improve the standardisation of processes, as well as visibility across the business, companies often have multiple ERPs or different instances of ERPs. The ERP landscape of our respondents Is there a difference in the pain points for organisations using single vs multiple ERPs? When comparing top pain points of those with one ERP system to those with multiple ERPs, the biggest difference is visibility and access to documents, such as invoices. Single ERPs vs Multiple ERPs How many ERPs does your organisation have? Is your organisation considering consolidating ERPs? For those with multiple ERPs: what is the reason more than 1 ERP is in use today? Which of the following pain points do you have in your organisation? 48% 1 ERP 2 to 3 19% 6% 10% 17% More than 10 3 to 5 5 to 10 86% 14% 86% of companies that have multiple ERPs are global or multinational companies with subsidiaries 48% have just one ERP and 52% have multiple ERPs. 86% of the companies with multiple ERPs are large complex, global companies. 14% of companies with multiple ERP systems operate in just one or two countries 38% are considering or planning a consolidation of ERPs. The benefits of a single ERP appear to be well understood, and it’s not necessarily the cost that prevents companies from consolidating. The main reason companies don’t consolidate is that it is just not yet a priority compared to other goals. The top 3 pain points across all respondents are manual entry across multiple systems, breakdowns in workflow and disparate processes. The biggest difference comparing pain points of those with single ERPs vs Multiple ERPs was access and visibility of documents such as invoices. Only 10% of those with multiple ERPs rated their invoice processing as excellent, versus 21% for those with a single ERP. Those with “excellent” invoice processing Consolidation is a low priority vs other company goals Each ERP addresses different business requirements Multiple ERPs provide greater business flexibility Effort and cost of consolidation is too high to justify consolidation Consolidation is too complex a project to undertake Benefits of consolidation are not well understood Manual entry across multiple systems Breakdowns in workflow Disparate processes Difficulty measuring and monitoring processes Access and visibility of documents Long finacial close process Lack of visibility spend across the organisation None of the above Access and visibility of documents such as invoices Disparate processes Manual entry across multiple systems 56% 19% 17% 14% 3% 1% 50% 47% 46% 39% 47% 21% 58% 32% 61% 38% 34% 26% 21% 17% 76% difference 58% difference 46% difference ERPs alone don't show the whole technology picture in finance. So, we also wanted to explore the role third party technology plays, and if it's different for those with single ERPs versus multiple ERPs. The ERP Landscape About half (48%) had a single ERP, half (52%) had multiple ERPs. Complex, global businesses are much more likely to have multiple ERPs. Single vs. Multiple ERPs Common P2P pain points are much more pronounced in companies with multiple ERP systems, especially issues of access and visibility of documents. Impact of Technology Although not optimal when compared with single ERPs, automation provides significant benefits to companies with multiple ERP systems. So how can companies with multiple ERPs enjoy the same benefits as those with single ERPs? This research identified three keys to success: Using technology alongside ERPs What tools do you use in addition to your ERP to manage financial processes? Here we compare the pain points of those with multiple ERPs with and without AP automation tools, and those with a single ERP. 53% 78% 68% 75% 44% 55% 41% 47% SingleERP MultipleERPs Workflow management tool Manual entry across multiple systems Disparate processes Breakdowns in workflow Difficulty measuring and monitoring processes Access and visibilty of documents such as invoices Long financial close process Lack of visibility of spend across the organisation Invoice automation tools (Scanning, OCR, Data Capture) AP automation Business process management tools Companies with multiple ERPs generally use more tools in AP / P2P including invoice automation tools and workflow. Those with multiple ERPs not using AP Automation tools have the highest percentage of pain points, in nearly all categories. Those using automation tools are better off, but are not doing as well as those with single ERP systems. Multiple ERPs, not using third party automation tools Multiple ERP using 3rd party tools Single ERP Capturing structured and unstructured information across the business is crucial for assuring full visibility. Consider tools that capture paper, electronic documents and forms, transforming them into accurate and actionable information. Tools should be compatible with any ERPs you are working with. Achieve global visibility and insight across multiple systems 1 Leverage technology for processes improvement 2 AP technology has changed dramatically over the last few years. Technology today features end-to-end analytics that provide valuable, real-time information for measuring user productivity, optimising cash management, enhancing supplier relationships and assuring compliance. These metrics contribute to optimising processes for higher throughput, reduced costs and improved performance. Ensure tools are as user friendly as B2C technology 3 When technology is complex or not user friendly, user adoption will be challenged. Device independent interfaces ensure employees will be effective and more willing to engage with the application from their desktop, laptop or smartphone. © sharedserviceslink.com Ltd and Kofax, a Lexmark Company 2015. No copy or visual can be used in part, as a phrase or in whole without the written permission of sharedserviceslink.com Ltd. The concept of this product belongs to sharedserviceslink.com Ltd and cannot be re-created by a third party for the purpose of an event, article, report or any other written product, without written consent made available by sharedserviceslink.com Ltd. Conclusion About Lexmark By leveraging user-friendly tools that both capture all the key information and provide actionable insights, those with multiple ERPs can start to ‘close the gap’ and start seeing the same benefits as those with single ERPs. Automation of labor intensive and error prone processes such as capture, validation and approval; together with insight and visibility provided by analytics, enables companies with multiple ERPs to enjoy benefits similar to those with single ERPs. Technology has helped alleviate the pain points faced by those with multiple ERPs, but leveraging the right technology and following best practice can intensify those benefits. Lexmark Enterprise Software is a global provider of software and solutions to simplify and transform the First MileTM of customer engagement. The First Mile represents information-intensive interactions a customer, provider or partner has with your organisation — interactions like new customer onboarding, claims processing, patient experience, student transcript processing and citizen services. By making these meaningful interactions fast, simple and accurate, you can set the stage for enduring and profitable customer relationships. In addition, by automating and streamlining accounts payable, invoice processing and other operational processes, the business can better facilitate hallmark customer interaction. A friction-free First Mile, and subsequent mutually beneficial engagements, can result in a sustainable competitive advantage. If you are interested in improving your financial processes and automation across one or a number of ERPs, contact info@lexmark.com 21% 10% Single ERP Multiple ERPs Single ERP Multiple ERPs Multiple ERPs, without tools Multiple ERPs, with tools Single ERP 30% 20% 8% 6% 24% 12% Yes, we are planning to move to one ERPYes, we are planning to move to just a few ERPs Consolidating ERPs is being considered, but not planned yet No, we have already consolidated ERPs No, we are not looking into consolidating ERPs I don’t know 69% 53% 38% 63% 47% 32% 32% 63% 47% 47% 38% 38% 38% 27% 12% 33% 15% 44% 44% 40% 21%