When manufacturers and distributors partner with the Ultra ERP consultant team, they have a clear sense that the focus is on Return on Investment (ROI) of Enterprise Systems. This laser focus on ROI starts with identifying the quantifiable savings returned to the organization after implementing (or upgrading) the enterprise solution.
In considering ROI of enterprise systems, another term that resonates is that of “value realization” – thought of as the business value derived from a process or project demonstrated over time.
This is a measure of the organization’s ability to generate more ‘value add’ from an enterprise systems project.
The term “value realization” is relevant to all parts of an organization, but seems most relevant when looking at ERP and enterprise ERP project implementation.
It’s our insight that the focus on ROI must look at the process improvements ERP supports, which might include a more streamlined ordering process, reduction of physical inventory counts, improved production quality, better scheduling and more.
ROI must look beyond hard savings like reduced inventories, cycle times, etc. and recognize those benefits achieved from more accurate materials planning, integrated databases, streamlined information reporting, dashboard reporting and other uses of real-time data.
High performing manufacturers assess the economic impact of other “soft savings” intangibles such as the dollars achieved from customer satisfaction, enhanced supply chain communication, improved decision-making quality, delivery performance, etc
Industry Article: The ROI of Enterprise Systems
After working with many ERP implementation projects over the years, the Ultra team is regularly sought after for insight into how to achieve true value realization and ROI after the project go live.
A recent article of Ultra’s shared insight is the Ultra Consultants’ article in TechTarget entitled “ERP deployment: How to ensure value realization after implementation.”
The article makes that case that a focus on “value realization” is one of the most important phases of an ERP selection project – a focus on building a solid business case for anticipated ROI. This analysis is useful to measure performance of the system, and consists of metrics tracking the tangible and intangible benefits of ERP.
Some enterprises experience a rocky ERP implementation because they fail to do the crucial implementation planning beforehand. Many teams are unaware of the business transformation that must take place early in the process. This is where a third party consultant comes in: to guide the customer through a series of planning and educational activities to identify the desired future state.
What’s key is an analysis of the existing systems and their weaknesses coupled with an identification of the desired future state. Also critical: a detailed review of potential business transformation needed to realize the value of the new ERP.
You can view Ultra’s Founder and CEO Jeff Carr’s insights in the Tech Target’s article “ERP deployment: How to ensure value realization after implementation.”
One of his key recommendations is an analysis of the existing systems and their weaknesses coupled with an identification of the desired future state. Likewise, he suggests a detailed review of potential business transformation needed to realize the value of the new ERP.
Learn More about The ROI of Enterprise Systems
- To read the full article, see Ultra’s TechTarget post entitled “ERP deployment: How to ensure value realization after implementation.”
- View an on demand webinar entitled “Getting the Maximum ROI from your ERP Project” for a deeper dive into this critical topic.