Step 1: Manage and measure change

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5 Steps to Profitability:Fulfill the Promise of ERP

The basics

With an ERP solution comes a great promise: the potential to help your organization make more money while spending less. Whether or not you already utilize ERP technology, profit is the engine that drives business. An ERP solution can steer your company in the right direction.

The truth is, the ERP solution itself can’t guarantee success. You and your company must guide the ship, using ERP as the sail. The promise of ERP can be fulfilled, but you must look beyond the software to find the formula that will lead you toward increased profits.

So how do you leverage this formula to become a better, more successful company? It’s simpler than it might seem…

You don’t have to be one of those statistics.

A great idea is just that – an idea. Rather than launch an idea, execute ideas from a solid plan. Be sure to incorporate necessary changes in your existing processes and establish benchmarks that can be used to measure the impact on your business.

Step 2: Streamline

Step 3: Lead evolution not revolution

Step 4: Listen

Step 5: Learn

Use ERP solutions to your advantage. Barcoding and data collection systems are readily available for most ERP solutions, as well as web-based tools to speed up the process of getting from quote to sale with distributors or remote sales teams.

Sound too good to be true?It’s not. You’re already 5 steps closer to a well-run ERP system.

Powerof People

Powerof ERP

Increased Profitand a HealthierOrganization

Remember this equation

+ =

But how can you ensurethat promise is fulfilled?

TIP: Project Management Institute is one of the best known sources for providing tools to successfully implement new ideas. You don’t need to have certified project managers.

TIP: Have a team review the new feature/function/fix lists and have a plan to update your processes to incorporate relevant functions made available by updates to your ERP solution.

OVER OVER

With a solid and well-communicated plan in place, you can ensure your staff will be productive and efficient when tasked to carry out that change. This will drive down associated costs and minimize disruption to your business.

Simply put: Your ERP solution will help you automate manual processes, eliminate paperwork, reduce errors and get your products to market faster, without sacrificing quality.

Get the facts Even companies that are satisfied with their software run the risk of running over budget, and many do not receive the expected benefits.

of projectsexperience

cost overruns

experiencescheduleoverruns

feel they receive under

half of the expectedbenefit from their ERP

implementation

realize lessthan 1/3

of anticipated project benefits

50% 60% 60% 27%

Avoid periodic, major leaps in your infrastructure and ERP solutions. It is the quickest way to cause disruption to your company, while taking sizable chunks out of your budget.

Too often, businesses keep outdated processes in place for years and fail to harness available technology that has the potential to fuel their business. Instead, use a slow and steady approach to move toward your goals, like a paperless system. Have visible processes in place that allow for backups and the adoption of new ideas.

Remember the phrase “the customer is always right.” Make sure you’re hearing what they have to say. Do this by implementing customer, vendor and employee experience feedback loops that feed into regularly monitored key performance indicators.

Financial indicators are important but they can only tell you what already went right or wrong. People can tell you what’s going right or wrong, while you still have time to take action.

Don’t rely on past experiences and don’t assume you’ll receive the information from department heads and meetings. Take matters into your hands.

When was the last time your organization asked, “What can we do better?” Now, when was the last time it asked, “What did we do wrong?”

You want to be asking the first question, not the second one.

At the end of each project or on specific business milestones, incorporate lessons learned into your existing ERP process.

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WELCOME

Sources: zdnet.com, greenbeacon.com. itcinfotech.com

ERP doesn't have to be confusing, and a good solution can help your company succeed—but only if used the right way.

When we work with companies implementing our software, we see a new energy that gets harnessed and fed into ERP, but it doesn't stop there.

That energy, combined with ERP, will help you increase your company's profit and ensure that your organization is healthier overall.

Know that these steps will lead you to take confidant action in adapting to ever-changing conditions, maintaining the health of your business, fueling growth and increasing profitability.

Bottom Line:Action: When planning for change, assess the impact on your current systems and establish success metrics.Benefit: Save costs and minimize disruption to your business.

Action: Take advantage of the barcoding and data collection options your ERP solution provides.Benefit: Gets your product in the hands of customers faster.

Action: Regularly update your processes to utilize new ERP features as they become available.Benefit: You’re pushing your company to evolve and leverage new technologies.

Action: Implement customer, vendor and employee experience feedback loops.Benefit: By listening to feedback, you’ll have time to take action before it’s too late.

Action: Incorporate lessons learned into your ERP process.Benefit: You're consistently utilizing your ERP solution to ensure continuous improvement and positive business growth.

Checklist:

YES

You don’t need to hope for the best whenyou’re using ERP correctly. The best will happen.

For more information about Exact MAX, visit us at max.exactamerica.comor call us at 1.855.EXACTMAX (1.855.392.2862).

CONTROL DEFINE

MEASURE

ANALYZE

IMPROVE

YES

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