Key Metrics To Think About for Implementation

By Rich Duncan

Enterprise Resource Planning (ERP) systems are used to manage and integrate key business processes across an organization. To measure the performance of an ERP system, here are some key metrics to consider:

  1. Implementation time and cost: This metric measures the amount of time and resources required to implement the ERP system. It includes the cost of hardware, software, and consulting services, as well as the time taken for installation and training.
  2. Return on investment (ROI): This metric measures the financial benefits that the ERP system provides compared to the investment made. The ROI can be calculated by comparing the cost savings, increased revenue, and other benefits to the cost of the system.
  3. User adoption: This metric measures the number of employees using the ERP system and how frequently they are using it. High user adoption rates indicate that the system is easy to use and provides value to the organization.
  4. System uptime: This metric measures the percentage of time that the ERP system is operational. High uptime rates are important to ensure that business processes can run smoothly without disruption.
  5. Order fulfillment rate: This metric measures the percentage of orders that are fulfilled on time and in full. It is important to monitor this metric to ensure that customer satisfaction is maintained.
  6. Inventory accuracy: This metric measures the accuracy of inventory records in the ERP system. Accurate inventory records are important to avoid stock-outs and overstocking, which can impact the organization’s bottom line.
  7. Cycle time: This metric measures the time it takes to complete a process, from start to finish. By monitoring cycle time, organizations can identify areas for improvement and streamline processes to increase efficiency.
  8. Customer satisfaction: This metric measures how satisfied customers are with the products and services provided by the organization. The ERP system can be used to collect customer feedback and track satisfaction levels.
  9. Employee productivity: This metric measures the productivity of employees in the organization. By using the ERP system to automate manual processes, employees can focus on higher-value activities, which can lead to increased productivity.

These metrics can help organizations measure the success of their ERP system implementation and identify areas for improvement.

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Posted in ERP, Implementation, Upgrade

About Rich Duncan

Rich rock-starred his way through large corporations working for the likes of IBM and American Express. Starting out as a "simple" IT Desktop Support Technician he manuvered his way through the scenery learning role after role and eventually felt stuck as a Lead Programmer. Finding that unfulfilling he set out to become an entrepreneur and after building a successful worldwide brand he crossed back over into the professional world as an ERP and WMS consultant.