The chart (Figure 8) is an extract from the CIMA report on Improving Decision Making in Organisations, it demonstrates the huge potential to reduce costs by implementing systems and shows how the role of FD’s is changing to become business partners participating in decision making.
So how does ERP reduce cost and improve profitability
Top Tips for your ERP Implementation:
- Start by drawing up a specification of your requirements – what do you want to achieve with the new system, what is the scope of the system, where will cost savings be made, how could more information lead to better decision making?
- Get Buy In – its really important that the ERP system gets the support of the Senior Management Team and that key staff are given the chance to put forward their ideas and are involved in the project. People are often resistant to change and getting them involved early will breakdown barriers to change.
- Rationalise – changing systems is an ideal chance to look at how can you do things differently and stop doing things that don’t add value, this will also reduce potential customisation requirements
- Allocate time to the project – If you don’t allocate time to the implementation project you will regret it later but that doesn’t mean you need to do everything yourself, budget to bring in temps and consultants to help
- Measure the savings and benefits – make sure you achieve your goals
Below are details of the Dynamics NAV system I implemented in 2007
One thought on “What do FD’s want their ERP system to do? Finance Transformation”
Steve: Picking up on your third point, it’s really important that you not only rationalise, you also iron out all the underlying process issues. I’ve told several clients, if you computerise a bad system, all you get is a bad computerised system. The IT won’t resolve your underlying process problems, so fix those first.