How do you track ERP KPIs?

1 What are ERP KPIs?

ERP KPIs are quantifiable metrics that can help you monitor and evaluate the effectiveness, quality, and value of your ERP implementation and usage. These metrics vary depending on the industry, business model, and ERP system features, but some common examples are ERP ROI (return on investment of your ERP system), ERP adoption rate (percentage of users actively using the system), ERP uptime (percentage of time the system is available and operational), ERP data accuracy (degree of correctness and completeness of data stored and processed), and ERP customer satisfaction (level of satisfaction and loyalty of customers interacting with the system or its outputs).

2 Why are ERP KPIs important?

ERP KPIs are essential for aligning your ERP system with your business strategy and vision, as well as identifying any gaps, issues, or risks. They can also help you optimize and improve system performance and functionality, demonstrate the value of the system to stakeholders and customers, and make informed decisions about its future development.

3 How do you set ERP KPIs?

Setting ERP KPIs requires a systematic and strategic approach. You need to define your business goals and objectives, identify the critical success factors and key drivers that influence them, select relevant and meaningful ERP KPIs, establish the baseline and target values for each KPI, and assign roles and responsibilities for collecting, analyzing, and reporting the data. With this approach, you can effectively measure your current and desired performance levels.

4 How do you track ERP KPIs?

To track ERP KPIs, you need to use the appropriate tools and methods to collect data from various sources, such as your ERP system, other software applications, surveys, or manual inputs. This data should be analyzed to identify trends, patterns, anomalies, or deviations from your expected or desired results. It should then be reported to stakeholders and customers in a clear and visual way, using dashboards, charts, graphs, or tables. You should review the ERP KPI data regularly and compare it with your baseline and target values to evaluate your progress and performance. Finally, you should act on the ERP KPI data to make adjustments, improvements, or changes to your ERP system or processes as necessary.

5 How do you improve ERP KPIs?

To improve ERP KPIs, you need to implement a continuous improvement cycle that involves monitoring your ERP KPIs and identifying any areas of concern or opportunity for improvement. You should then investigate the root causes and underlying factors that affect your ERP KPIs, using tools such as root cause analysis, fishbone diagrams, or 5 whys. After that, develop and test possible solutions or actions that can address the root causes and improve your ERP KPIs, using tools such as brainstorming, prototyping, or pilot testing. Then implement and evaluate the solutions or actions that have the most potential and impact on your ERP KPIs, using tools such as feedback, surveys, or A/B testing. Finally, learn from the results and outcomes of your solutions or actions and apply the best practices or lessons learned to your ERP system or processes.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?