May 2, 2007

Deriving benefits from ERP

According to the "ERP in Manufacturing Benchmark Report" published by the Aberdeen Group, the companies that implemented ERP can be grouped under three different categories - laggards, Industry Average and Best In Class- based on their scores in 4 different criteria vis. Process (what business value has been gained from ERP), Organization (corporate focus / philosophy, level of collaboration among stakeholders), Knowledge (visibility across manufacturing and order fullfillment process) and Technology (scope of ERP implementation and use of technology)
Process: While laggards do not measure any business benefits from ERP, the best in class not only document and continually measure the business benefits, they also update / tighten the business benefits as they achieve one milestone.
Organization: While IT department owns and drives ERP in case of laggards, it is the business that owns the ERP implementation in case of BIC customers
Knowledge: Best in class implementations provide real time visibility to the manufacturing and order fulfillment process.
Technology: While laggards implement only a few of the available modules and use less than 50% of the functionality of these modules, the best in class implementation implement advanced modules like workflow technology , event management etc and utilize more than 70% of the functionality in the implemented modules. Moreover, the best in class implementation are quick to imbibe latest technologies including SOA and other integration technologies.

Any comments?
You can download the report free at Aberdeen Site. You have to register before downloading.

1 comment:

amit chavan said...

Great Blog !!!
It looks like you spend a large amount of time and effort in writing the blog. I am appreciating your effort.
Tangible benefits improves Improves the productivity of process and personnel where as in intangible benefits Increases organizational transparency and responsibility.
Thanks for sharing such a nice blog on benifits of ERP..