Part 1 of 8
Assess Current ERP systems Maturity
As mentioned earlier, in ‘The journey from ERP to Digitalization’, as first step we need to assess the status i.e. assess current ERP system’s maturity.
1. Asses Current ERP system Maturity
How do we approach this? We have listed steps to be covered in this assessment. These steps or approach could differ from business to business but most of the time, will cover similar core points.
How do we Assess Current ERP systems Maturity
1. Evaluate Business Functional Coverage
- Are all key business functions (Finance, Procurement, Manufacturing, Sales, Inventory, etc.) integrated in ERP? Or anything you are using in isolation?
- Are there critical processes still outside ERP (in Excel, emails, or legacy systems)? Or any workaround being used
2. Analyse System Usage
- Identify gaps, if any
- Check actual usage vs. available implemented features.
- Identify underutilized modules
- Identify reasons for underutilization of modules or customizations
- Mark the customizations that complicates upgrades.
3. Review Integration Landscape
- Map integration with other systems: CRM, PLM, HRMS, third-party apps. Or check if it makes sense to use these features from existing ERP system, if these modules are available with similar capabilities.
- Note the pain points such as manual handoffs, recurring issues, duplicate entries, or delays.
4. Assess Data Quality & Governance
- Audit, Master data (customers, vendors, items) for: Completeness Accuracy Consistency
- Check if roles, responsibilities and processes for data ownership are clearly defined.
5. Measure Process Efficiency
- Benchmark key process metrics: Purchase order cycle time Order-to-cash cycle Inventory turnover
- Identify bottlenecks, time lapsed or non-standard workarounds.
6. Check Reporting & Analytics Capabilities
- Evaluate if current ERP provides timely, desired self-service reporting.
- Are users getting help / information from system which make their day-to-day task easier and faster
- Are users still relying heavily on Excel exports or external BI tools?
7. Evaluate User Experience, convenience to use & Mobility
- Assess user interface: Is it intuitive, responsive, and role-based?
- Do they have ability to check ‘How to’ in quick references?
- Check if mobile access is available and used by field staff/sales/service teams effectively.
8. Review Technical Platform & Upgrade Path
- Note ERP version, deployment (on-prem vs. cloud), and support status.
- Compare current implemented version against available OEM’s latest version available.
- Evaluate OEM’s roadmap and compatibility with modern tech stack.
9. Understand Customizations & Extensibility
- Check if all documentation is available. If not;
- Document all custom developments and assess if they’re truly needed.
- Check if customizations will hinder upgrades or cloud migration.
10. Conduct Stakeholder Interviews
- Get feedback for from business users, IT team.
- Get a feedback and inputs on MIS/analytics from top management.
- Capture what’s going well, pain points, wish list items, and readiness for change.
These pointers/answers will give you inputs to help in arriving at current ERP maturity. This will also give you an insight to leverage potential of existing ERP, if not being utilized to full extent.
Once you know the current ERP maturity and plan to leverage potential of existing ERP to the extent. This status will form the foundation for defining your Digital Vision & Strategy, which will guide you in prioritizing initiatives and modernizing your technology landscape.
Stay tune to know how to approach arriving at Digital Vision and Strategy.
And don’t forget to add your experience while you had assessed your current ERP system maturity in comments. Together we learn !
