ERP Implementation KPIs: Measuring Success

ERP implementation KPIs on screen graph

In this article, you’ll learn what ERP implementation KPIs are. Naturally, this is a complex topic. As such, this article marks the start of a blog series.

Today, we’ll focus on the general guidelines. You’ll receive the definition and the main KPI categories for ERP implementation. However, we’ll have to revisit each category in future articles.

For these articles, we’ll use this study as the basis.

What are ERP implementation KPIs?

KPI stands for “key performance indicator.” In any industry, they refer to success metrics. For instance, marketing experts use engagement metrics as KPIs. That said, ERP implementation requires other metrics.

Essentially, KPIs let you measure your implementation’s success. Thus, you should establish them before implementing ERP software. The same goes for any investment.

The main ERP implementation KPIs

This table from the previous study paints a great picture. Thankfully, it simplifies over 20 KPIs for ERP implementation. Of course, we won’t explain each one in this article. Yet, we ought to understand the main categories and their meaning.

Finances

For financial matters, the KPIs are easy to expect. They include gross margins, revenue and profit growth, and cash conversion. Likewise, inventory and receivables turnover is crucial in some companies.

Customers

ERP doesn’t relate directly to customers. Yet, they might also provide crucial insight. For instance, we have response times and customer and accurate delivery rates.

Internal processes

These KPIs refer to your company’s operations. Thus, we can consider manufacture and order dealing times. Moreover, your capacity to cater to provisional orders could increase.

Learning and growth

Finally, you must think about how ERP software adapts to your company. These KPIs mainly refer to information. That includes accuracy, dealing, and delivery between departments. Consequentially, that translates into database integration’s efficiency.

How to find the best ERP implementation KPIs for you

Now, guidelines are perfect for finding ERP implementation KPIs. But, each organization has unique needs and goals. That means some KPIs might be more important than others. Likewise, some might be negligible.

When choosing ERP KPIs, consider the following:

  • Your industry.
  • Why you’re implementing ERP software.
  • Which modules and features you’re including.
  • What products you’re offering.
  • Your business processes.

Those and other metrics are crucial for setting your implementation KPIs. Unfortunately, assessing them can be hard. That’s why we also invite you to book a free meeting with us today!

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Zero Point ERP Solutions

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