Metrics for supply chain:
- complete and on-time delivery
- improvement in complete and on-time deliveries achieved from ERP implementation
- inventory accuracy
- improvement in inventory turns achieved from ERP implementation
Metrics for optimise internal business processes:
- internal schedule compliance
- year-over-year change in time-to-decision
- average days sales outstanding
- days needed to close out a month
Impact on bottom line:
- reduction in operational costs achieved from ERP implementation
- reduction in administrative costs achieved from ERP implementation
- change in profitability (operating margin)
ERP optimisation:
- reduction in operational costs achieved through ERP implementation
- reduction in administrative costs achieved through ERP implementation
- improvement in profitability
Managing the data feeding ERP system:
- data definitions continuously maintained and updated
- consistent policies for classification / metadata tagging
- job role (e.g. chief knowledge officer) dedicated to data management
- measurement tools to capture and scorecard data quality issues
The organisation foundation of ERP success:
- continued commitment and attention of senior management
- ERP ultimately owned by line of business
- standardised ERP implementation across the enterprise
- cr0ss-functional teams for continuous operational improvement
Optimising master data with increased ERP visibility:
- decision makers able to drill down to transaction level of audit trail
- real time visibility into status of all processes (quote to cash)
- automatic notification when scheduled activities fail to occur
- automatic notification when certain conditions are met
Key technology enablers:
- data integration (ETL) tools
- metadata repository or data dictionary
- data deduplication tools
- data normalisation tools
- data quality tools
Recommendations:
- build a business case for a master data management (MDM) initiative
- integrate MDM into ERP system
- govern the data
