Strategy: Improve business efficiencies with ERP Health Index

Business efficiencies can never reach a level that satisfies a CEO completely which simply means that we need to constantly keep on improving on it. As you will iron out one area of business processes to make them more efficient and effective, the other areas will starting popping with new inefficiencies as per the market dynamics and everytime it is not the fault of the employees but the new requirements of market force them to take their own small measures to adapt to the newer practices which might not be best practices and these continue bringing new inefficiencies. One of the measures to reduce these inefficiencies is to constantly review them and address the business issues urgently and the 2nd option, whihch we will talk here in detail, is utilizing your ERP Health Index to improve business efficiencies.

To start with, what is an ERP Health Index? Do you have one for your ERP? Well, let me start explaining the concept of ERP Health Index or EHI. Every ERP has a set of processes mapped to the technology as per the business metrics or Key performance indicators (KPIs). during the course of implemeting the ERP solution, these business metrics are identified, frozen and a processes is setup in such a way that these metrics attain their best values. Normally, what happens after some time, that due to reasons like market demands, lack of co-ordination within departments, new systems coming into place and getting integrated with ERP, new features implementation in ERP etc., the best practice processes which were put in place while solution deployement are either changed or are not best practices any more and need to be changed. Now, how do we measure this? How will we make sure that our ERP still has the best solution suited to our business? EHI helps in measuring these changes and you can achieve following:
  • Know the existing state of ERP in terms of the business metrics and KPIs
  • Helps to find out the desired state of ERP
  • Assists in creating a roadmap for reaching the desired state in certain time frame
Normally an EHI has 2 important sections and that are: functional - which focusses on KPIs measurement, their best in class values and ways to improve those KPIs and, technical - which focusses on the technical aspects of ERP telling you about the performance of the instance, inegrations, data duplicacy and redundancy in the system etc. Both these sections have a set of configurations and scripts that will extract information from your ERP, present them as a dashboard, compare them with indutry best in class standards and recommend the actions that will help you improve your processes in ERP to ultimately improve your business efficiencies.

I will be happy to share more details on the modus operandi of EHI and its ingredients if anyone is interested more in this. Don't worry - the information you may want from InfoVerto is not chargeable at all.

2 comments:

  1. I would certainly be interested to hear more about EHI.
    Simon G

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  2. Sure Simon, Send me your specific questions using the "contact" form at http://www.infoverto.com/p/contact.html and I will be pleased to answer your queries.

    ReplyDelete

Your thoughts are welcome