ERP well being examine: Greatest practices for monetary groups in 2024



From navigating the fallout of geopolitical conflicts to managing the heightened uncertainty of at present’s inflationary setting, 2023 has confirmed to be some of the hectic years but for CFOs and their monetary groups. 

Provided that lots of the disruptions companies confronted in 2023 are probably set to rollover into 2024 — if not longer — monetary groups want to verify their operations are operating as easily as potential because the calendar flips over to the close to. That is significantly true in relation to their know-how and ERP capabilities.

Serving because the hub for monetary operations throughout tax administration, core accounting, payroll and past, ERP methods have actually revolutionized the best way monetary groups are capable of handle their workflows and ship higher monetary outcomes for his or her organizations. Nonetheless, as with every know-how, ERP methods must be consistently reassessed as enterprise wants shift and new priorities come up. That is simpler stated than carried out given how intricately intertwined ERP methods are all through organizations at present.

With that in thoughts, beneath are a number of key concerns that CFOs and monetary groups want to remember as they appear to optimize their ERP methods in 2024.

Figuring out the targets of your ERP well being examine

Due to how broadly built-in right into a enterprise’s operations ERP methods are, to successfully stress check ERP infrastructure and uncover areas for enchancment it is important for monetary leaders to take a step again and set up a exact scope for his or her well being examine alongside a clear-cut checklist of targets they want to obtain.

Every group’s wants will probably shift from 12 months to 12 months as they add service traces, adapt to new statutory necessities, revamp their company methods and deal with different rising priorities. ERP methods will must be tweaked because of this. As a result of vastness of ERP methods, monetary leaders have to establish precisely which modules must be evaluated, upgraded or fully changed from the beginning. In any other case, with out these “to-dos” clearly acknowledged, well being checks can rapidly grow to be unwieldy, and groups merely will be unable to make the required changes to attain the optimization and most ROI they’re in search of.

Overview focused module efficiency

With this framework in thoughts, monetary leaders and ERP groups want to start the method of evaluating the modules they’ve recognized as priorities. Key to that is guaranteeing stakeholders perceive the varied limits and potential limitations their methods current over the quick, medium and long run. To do that, groups have to ask a number of key questions of every module together with:

  • What features are being carried out by the system? 
  • How a lot time does it take the system?
  • How a lot work is being carried out outdoors the system?
  • How a lot time does a course of take from begin to end?
  • If we elevated enterprise by 10%, 20% or extra, would our present course of be capable to deal with the expansion?

These questions will assist present the baseline understanding that groups have to conduct their well being checks extra successfully.
Carry out inner critiques of person experiences

Alongside the efficiency of the modules themselves, finance groups have to look inward and assess how their ERP platform is impacting person efficiency all through the group. For ERP methods to supply the very best outcomes, they should ship a user-friendly expertise, so gathering as a lot suggestions as potential on essentially the most troublesome and time-consuming points customers face may be pivotal. When adopting developments to your ERP methods, this extra user-side intelligence will assist leaders higher perceive the place extra coaching could also be wanted to spice up end-user expertise and mitigate frustrations.

Safety assessments

Almost two-thirds (64%) of firms utilizing ERP methods have been victims of cyberattacks. As cybercrime continues to surge worldwide, the variety of assaults geared toward compromising these essential methods will solely rise as properly. Subsequently, it has by no means been extra essential for monetary leaders to double-check the safety of their ERP platforms to detect anomalies and stop misuse. Who has entry rights? Have we reviewed the system change log and deleted transactions and investigated them accordingly? Are we in keeping with supplier SOC 1 management modifications? These are only a few of the questions monetary groups have to ask themselves to make sure their safety is as much as scratch. As well as, monetary leaders ought to look to loop in exterior safety companions to vet their methods for threats and weaknesses.

Present analytics and reporting

ERP methods have been a boon for monetary workforces in relation to streamlining their workloads, if they’re configured appropriately. ERP methods should not a one-size-fits-all proposition and must be inbuilt a manner that permits customers to obtain the knowledge they particularly want and rapidly. Stakeholders should ensure that throughout their well being checks that platforms are sufficiently custom-made and ship the real-time dashboards and insights in a role-based manner. That is additionally a good time for stakeholders to reassess their KPIs and broader analytics methods and capabilities to verify the KPIs are nonetheless acceptable and they can glean the inner and exterior knowledge they should meet them.

Scalability planning

ERP well being checks mustn’t simply be restricted to how properly your group is assembly its present targets and targets. The best well being checks additionally consider how properly your group is ready up for potential future development and the way your group goes to ramp as much as meet these development calls for. As soon as targets are formulated in the beginning of the well being examine course of, stakeholders have to ask themselves whether or not their ERP system is able to be capable to scale with them. If not, stakeholders want to determine a scalability plan that takes under consideration issues comparable to finances, integration wants and customization preferences to establish which kind of ERP setting — comparable to on-premise, cloud or hybrid — is finest for them. From there, stakeholders can construct methodical plans for a way and when they’ll develop their methods and capabilities versus having to “construct the airplane whereas it’s flying.”

Trying forward

An environment friendly ERP system is usually a game-changer for organizations at present. And whereas well being checks could look like an onerous course of, by holding these concerns in thoughts, monetary groups can take away lots of the complications which may in any other case exist when conducting well being checks and emerge with extra refined ERP methods that may ship the long-term success their organizations deserve.

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