Is Your ERP in Alignment with Your Business?

At a glance:

• The main takeaway: Enterprise resource planning systems are crucial components of successful businesses, but they need regular attention and tune-ups to keep working at optimal performance.
• The impact on your business: Keeping ERP systems working at full capacity and in line with business objectives will help prevent costly breakdowns and ensure optimal performance across its modules.
• Next steps: Schedule a checkup for your ERP system today, and reach out to Aprio for assistance with that or any other business challenge.

Schedule a consultation with Aprio’s Technology Advisory Services team today.

The full story:

Enterprise Resource Planning (ERP) systems have become indispensable to a long and growing list of businesses across industries and geographies. Their ability to connect disparate departments, centralize dataflows and streamline, manage and monitor critical business processes have made ERP systems synonymous with well-functioning companies, and they will only grow more useful and capable over time. 

A healthy ERP system is at the core of almost every successful business. They are essential organs that act like hearts, spines and nervous systems all at once. Businesses – and bodies – break down without them. But as important as they are, it’s surprisingly easy to take them for granted until it’s too late. 

Despite the considerable investment of time, money and effort that companies put into setting up their ERP systems correctly, there’s a tendency to overlook the ongoing importance of keeping the software aligned with evolving business needs. It’s easy to forget to schedule a routine checkup when you aren’t in pain, and it’s hard to rationalize spending resources on fixing ERP systems that aren’t broken. But much like the human body, ERP systems require regular checkups to ensure everything is working at optimal efficiency and fully aligned with the rest of the business.

Business landscapes are constantly evolving, with companies becoming more agile in their go-to-market strategies and product delivery. However, these changes often occur in real-time without corresponding assessments of whether the company’s systems remain aligned. So, what should an ERP health check entail, and what outcomes should you expect? Here are some essential areas to cover:

Purchased Module Performance: Assess whether each ERP module is necessary, functional and aligned with current business processes.

Businesses are constantly evolving, and their needs evolve with them. ERP modules that were mission-critical at the time of purchase may become less and less relevant over time. Business models change. Companies update old systems, adopt new ones and reconfigure their processes to better fit their needs. After a few years of change that mission-critical module might not fit in with a company’s processes or mesh with its other systems anymore. 

Current User Experience & Adoption: Review existing license usage and identify opportunities for cost savings or increased adoption.

It’s a good idea to check and see if your ERP system is being used the way you hoped it would when you agreed to pay for all of those licenses. If adoption rates are high, there’s a very strong chance that your company is using the current ERP system as intended. If adoption rates are low, you should consider one of three possibilities:

• There are more licenses than your team needs, so you could save some money by cutting back.
• Your team isn’t using the ERP system enough, so you could see boosts in productivity if you encouraged adoption.
• You need a new ERP system.

Security Assessment: Evaluate existing security protocols to ensure the system’s integrity.

New vulnerabilities may be discovered in your ERP system as the software ages, particularly if you are using modules that are no longer receiving security updates. It is highly recommended that you conduct regular security checks to ensure your security protocols offer sufficient protection against cyberattacks.

Analytics & Reporting: Identify any gaps in reporting capabilities based on the needs of primary end-users and stakeholders.

Analytics and reporting are two of your ERP system’s most important functions, so it’s prudent to make sure your team can leverage them to their fullest. Take the time to speak to end-users and stakeholders who use these functions on a regular basis. Ask if there are any gaps in functionality and what, if any additional features or functions they would like. See if those gaps can be plugged, and whether those functions could be added to your current system.

Scalability Planning: Confirm that the ERP system is equipped to support the company’s future growth requirements.

Overall Recommendations: Provide a comprehensive summary report along with recommendations for any necessary improvements.

In conclusion, just like our bodies, ERP systems require care and maintenance to perform optimally. Conducting an annual ERP health check, akin to regular physical examinations, is a prudent best practice. Neglecting alignment between your ERP and business processes can lead to growing pains and potentially catastrophic outcomes.

Schedule a consultation with Aprio’s Technology Advisory Services team today to explore solutions for keeping your ERP system healthy.

Related Resources:

NIST CSF 2.0 – Critical Updates and Need to Know Information

Tech Over Troubled Waters: Six Questions Facing the Tech Industry Right Now

Migrating to the Cloud: Security Should Be Your Priority, Not an Afterthought