Is your organizational KPI clearly established before your ERP Implementation Journey?
Before adopting any ERP implementation, there are a set of criteria which must be looked into. These pre-requisites need to be met before commencing the ERP implementation journey. A deep dive into those pre-requisites must be done to ensure that all key aspects in the check-list are ticked. Consequently, taking a plunge into the ERP Implementation journey without doing so can become treacherous. Therefore, let’s see why identification of KPI is so important for the ERP Implementation Journey.
The objective of every ERP implementation is to make sure that the bottom-most transactional layer in the organization is captured in a structured, automated, methodical, and consistent way. This ensures that the information needs at every level up until the board layer are met. Nothing can be more foolhardy than attempting to launch an ERP project without clearly establishing the KPIs and information needs of the organization.
Establish the KPIs which are going to be measured for the organization based on periodicity. A few examples are:
- Working Capital
These KPIs establish the tone of the entire organization for measuring various performance indices.
KPIs Guide the Automation
Implementation teams should understand which parameters have to be captured and reported at the end of automating each and every process. By clearly establishing KPIs, MIS reports, and information needs, it becomes easy to embed the necessary parameters while automating rather than trying to deduce them at a later stage.
KPIs Set Automation Priority
By establishing KPIs at every level of the organization, managers and subject matter experts can prioritize which processes to automate.
KPIs Set Clarity on Outcome Measurement
Establish KPI for every layer of the organization and make it evident that delivering the information needs pertaining to the KPI becomes a key measurement criterion on whether an ERP Implementation has met its outcome or not.
KPI Delivery enhances Success Perception of ERP
If KPIs are delivered for every layer of the organization, it enhances the success perception of ERP Implementation. The productivity enhancements delivered by ERP implementation may not be understood if this is not done.