Significance of having an ERP assessment in your organization

Significance of Having an ERP Assessment in Your Organization

Investing in the enterprise software is a must to integrate business functions and processes. For a company to determine if the ERP software is still working and beneficial to the business organization, an ERP assessment must be conducted.

ERP assessment is a process to evaluate whether the existing ERP system of the organization is functioning effectively and whether the ERP system is meeting the business’s needs.

The process of ERP assessment will deeply go through different aspects of the organization which commonly include system integration, quality of received data, the use of Microsoft Excel, budget and dependence on paper forms and templates.

A deeper understanding of how the organization utilizes ERP system will provide perspective into potential opportunities, possible risks and the areas of improvement.

The ERP assessment should look at certain issues like the current business practices, the appropriate controls in place, the process efficiency, the long-term strategy of the organization, business practices alignment, available resources for the initiative which usually include the technology, people, funding etc, the scope of the initiative, and the risks of the organization and a successful project.

Performing an ERP assessment is a chance for the IT team of the organization to develop an ERP roadmap which is aligned with the business objectives.

An ERP assessment process would include conducting an ERP software assessment, performing a business process assessment, conducting a people assessment, and conducting a helpdesk request assessment.

In the process of conducting an ERP software assessment, it is good to have an ERP software checklist that would identify all Out-of-the-Box (OOTB) functionality that is available to utilize.By conducting an interview with key IT resources for business provided the opportunity to settle the checklist before meeting with the key business users while by conducting an interview with key business users or owners, focuses on the differences between IT and the business.

It is likewise important to take note the functionality/ Business activities performed outside the ERP software, identification of functionality that might be a future need, and identification of functionality that the business does not know exists in the ERP software.

However, ERP software is just one of the component of a business solution, ERP assessment must take a look at the business processes and people who support the ERP software.

The people comprising the organization are the vital part of a business solution and must not be taken for granted.

Wrapping it all, the primary purpose of an ERP assessment is to determine how to generate extra Return on Investment (ROI) from ERP. With the ERP health check you will have a comprehensive insight and knowledge needed to make decisions regarding governance, opportunities, risks and investments.

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