It's a sad truth that not all ERP implementations proceed smoothly and result in overwhelming success. Whether you choose the wrong ERP solution, engage the wrong ERP partner, or fail to obtain employee buy-in, unsuccessful ERP implementation can cost you time, money, and future business.
So, how can you safeguard your ERP implementation project against failure? And how can you measure your success? Understanding what a full-service ERP solution such as Microsoft Dynamics 365 can do for your business is the first step to ERP implementation success. Clearly stating your ERP project goals gets everyone on the same page and keeps individual players focused on their objectives. With defined business objectives, you can make better technology decisions.
Identify Your Business Goals
You'll know your ERP implementation project is a success if the technology meets stated business objectives. The project must also be on time and on budget and be adopted by your employees.
A best practice is identifying key performance indicators (KPIs) against which you can gauge your progress and the outcome. Some frequently stated reasons for implementing a Dynamics ERP solution are:
- Improved customer experience
- Enhanced sales performance
- Increased productivity
- Improved profits
Improved Customer Experience
It could be argued that your customers are your business. Without them, no amount of technology will keep your business afloat. When thinking about improving customer experiences, ask yourself where you stand now with customer satisfaction and how you expect to improve after implementing your ERP solution. You can use indicators such as customer ratings, repeat business, order response time, customer complaints, etc. The right ERP and a successful ERP implementation should boost your success in each area.
You can conduct customer surveys asking for feedback. You'll also be able to gauge success by tracking the number of return customers. Hopefully, you'll see a vast improvement. If there is no improvement, you may have missed a critical component, such as training for change management to ensure employees are using the system properly.
Enhanced Sales Performance
Many sales organizations recognize the value of a Microsoft Dynamics 365 ERP implementation to optimize their sales capabilities. Indicators can measure sales metrics that will clearly indicate improved performance. These indicators might be increased order sizes, greater profit margin per sale, and increased or decreased lost sales. Use feedback about these areas to determine if your processes need adjustment.
If your sales and profit margins increase and your percentage of lost sales decreases, this counts toward ERP implementation success. If you experience the opposite, you must analyze the situation to identify possible failure points in using your ERP and its functionality.
It's a good idea to evaluate your processes and training. You may need to design more intuitive processes to encourage employees to adopt the system and benefit from the data.
Increased Productivity
Streamlining business processes to increase productivity is a common reason for ERP implementation. Productivity may mean something different depending on a company's industry and goals. In manufacturing, productivity may mean increased production. For professional service firms, it ties to clients served and efficient resource management.
Some of the indicators for measuring ERP success for productivity might be:
- Increase of completed transactions per employee
- Growth in the number of sales calls
- Average task completion rate
If your Dynamics ERP implementation succeeds, your teams won't need to rely on complicated workarounds to get their jobs done. They will be able to perform tasks more efficiently. The system should reduce repetitive and complex work, such as pulling data and rebuilding reports. Having real-time data available, they'll be able to make better daily decisions. Their productivity ties directly into all other components of your business, so it's crucial that they get the tools and training they need.
Be sure your employees are adequately trained and supported as they become acquainted with the new system. Also, clearly outline your expectations and updated evaluation criteria. Survey your employees before and after implementation to understand their experience and satisfaction rates.
Simplified processes, intuitive technology, better data visibility, increased collaboration, and improved mobility for all employees are indications of ERP implementation success
Improved Profits
Business growth is another benefit of a robust ERP such as Microsoft Dynamics 365. A new ERP implementation should give you a fast return on your investment and help you realize revenue growth and tangible profits. ERP will provide real-time data to help you make better business decisions. It will help you identify any inefficiencies in your operations. A Cloud-based solution such as Dynamics 365 will save you money on hardware and IT spending. It will help you identify your most profitable activities, products, or services. And it will improve forecasting.
Some criteria for measuring ERP implementation success include:
- Cost per employee per location
- Inventory turnover
- Gross profit margin
- Average invoice processing cost
Define Your KPIs for ERP Implementation
The best KPIs to measure the success of your ERP system implementation depend on your business goals, and some will be industry specific. You might prioritize improving project margins, resource management, order management, timelines, or employee satisfaction. Collaborate with your ERP implementation partner to establish metrics most important for your business.
Implementing a new ERP system is a big project. It's essential to get it right. The best thing you can do to lead your company to success is to find the right partner to help guide you through the process.
If you are considering a new ERP project, download our free eBook on what to look for in an ERP partner, including a bonus section with 9 warning signs that should send you running in the other direction.
Download now: 9 Questions Nobody Asks Their ERP Partner … But Should
Then contact our ERP experts at Enavate, and let's talk. We can help you implement the Microsoft Dynamics ERP solution that will move your business forward.
By Enavate, www.enavate.com
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