An ERP system is a critical backbone for many organisations, enabling the integration of various business processes such as finance, supply chain, human resources, and customer relationship management. However, as companies evolve, they often face the question: should we invest in a new ERP system, or can we optimise the one we have?
While a complete overhaul might seem tempting, it is often not the most cost-effective or necessary solution. Instead, many companies can achieve significant improvements by optimising their existing ERP system. As an ERP and business change consultancy, we understand that an optimised system can deliver much of the functionality businesses need without the high cost and disruption of starting from scratch.
In this article, we will explore five key ways to optimise an existing ERP system, helping your business extract more value from your current investment.
1. Streamline Business Processes
One of the most common issues with ERP systems is that over time, processes become cluttered with inefficiencies, workarounds, and outdated methods of working. Often, the system gets blamed for poor performance, but in reality, it is the business processes that need refining.
The first step in optimising your ERP system is to conduct a thorough review of your current processes. Engage key stakeholders across departments to map out workflows and identify bottlenecks or unnecessary steps. Consider how much of the process is manual and whether automation could improve efficiency.
Once you have optimised these processes, your existing ERP system will run far more efficiently, helping reduce manual effort, minimise errors, and speed up operations.
2. Improve Data Quality
For an ERP system to deliver accurate, actionable insights, it relies on clean, well-structured data. Unfortunately, many companies struggle with data integrity issues. Duplicate entries, incomplete records, and inconsistencies across different business units can hinder the effectiveness of your ERP system.
Improving data quality can make a significant difference in how well your ERP performs. Start by conducting a data audit to identify gaps, inconsistencies, and inaccuracies in your current system. From there, implement data governance practices that ensure ongoing data accuracy, including:
Standardising data input protocols: Ensure that all employees follow the same procedures for entering and updating data in the system.
Cleaning up duplicate or outdated records: Regularly review and remove duplicate entries or outdated information that can clutter the system.
Integrating disparate data sources: If your organisation operates with multiple databases or legacy systems, integrating them into a central ERP platform can help ensure consistent, high-quality data.
By focusing on data quality, you will not only improve the accuracy of the reports and insights generated by your ERP but also enable more effective decision-making across the business.
3. Enhance User Training and Adoption
One of the most overlooked areas of ERP optimisation is the role of the end-user. A powerful system is only as good as the people who use it. Over time, employees may develop inefficient ways of using the system, or they may not be fully utilising all the features available to them.
To address this, invest in ongoing user training and support. Ensure that employees at all levels of the organisation understand how to use the ERP system efficiently and can take advantage of its full range of features. Consider the following approaches:
Tailored training programmes: Design training sessions that cater to the specific needs of different departments. For example, finance teams may need more in-depth training on the financial reporting tools, while HR staff may need to focus on payroll and employee data management.
User adoption assessments: Periodically assess how well users are engaging with the system. Identify areas where additional training or support may be required.
User-friendly enhancements: If users are struggling with specific tasks, consider optimising the system’s interface or customising dashboards to make navigation more intuitive.
A well-trained workforce can make a huge difference in how effectively your ERP system is utilised, maximising its value to the business.
4. Leverage ERP Customisation and Add-Ons
Many businesses overlook the potential of customising their ERP system or adding modules that can enhance functionality without the need for a full system replacement. Modern ERP systems are highly modular, allowing you to bolt on additional features or customise workflows to suit the specific needs of your organisation.
Customisation can address gaps in functionality or streamline processes that are not handled efficiently by the standard ERP setup. For instance:
Custom workflows: If your existing ERP system does not align perfectly with your business processes, consider customising workflows to match the way your organisation operates.
Integration with third-party applications: Many ERP systems can be enhanced by integrating third-party tools, such as advanced reporting software, customer relationship management (CRM) systems, or specialised supply chain management tools.
Working closely with your ERP provider or an experienced consultant, you can explore these options and identify which customisations or add-ons will deliver the most value to your business.
5. Regularly Review and Update System Configuration
ERP systems are constantly evolving, with vendors regularly releasing updates, patches, and new features. However, many companies fail to take full advantage of these improvements, leaving their system running on outdated versions or with suboptimal configurations.
To ensure your ERP system is performing at its best, schedule regular system reviews and updates. This involves:
Applying system updates: Keeping your ERP software up to date ensures that you are benefiting from the latest performance enhancements, security patches, and new features.
Reviewing system configurations: As your business evolves, your ERP configuration may need to change as well. Periodically review system settings, access controls, and workflows to ensure they align with your current business needs.
Performance monitoring: Use built-in reporting tools to monitor system performance and identify areas where further optimisation may be needed.
By regularly reviewing and updating your system configuration, you can keep your ERP running smoothly, improve security, and take advantage of new functionalities that may otherwise go unnoticed.
Conclusion
Optimising an existing ERP system can deliver significant benefits without the need for a costly and disruptive system overhaul. By focusing on streamlining processes, improving data quality, enhancing user adoption, leveraging customisations, and regularly reviewing system configurations, you can unlock the full potential of your current ERP system.
For many businesses, these optimisation strategies can result in improved efficiency, better decision-making, and greater ROI from their existing investment. Before considering a full ERP replacement, explore how optimisation can help you achieve more with what you already have. With the right approach, your ERP system can continue to serve as a valuable asset, supporting the growth and success of your organisation.