According to research firm IDC, companies will invest globally
Digital Transformation for ERP and Operations Managers
A McKinsey report reveals that
- Enabling sustainable growth, expanding profits, increasing likelihood and revenue share
- Leverage digital trends to excel, meet shareholder expectations, and stay ahead of the competition
- Launch the innovation process to take advantage of current and upcoming market opportunities, and change and differentiate themselves quickly and frequently
- Enable continuous delivery of services to customers through short, efficient cycles and improved time to market
- Gain instant insights into the effectiveness of business processes and take steps to improve them for better returns
- Get a real-time view of customers and their needs while enabling sales teams to deliver the products and services that best fit those needs
Determining the necessity of digital transformation
Although it is an exciting time for organizations to embark on their digital transformation journey, starting off on the right foot requires operations managers to not only think about the technologies that will be implemented (or phase out), but also address some important project-related questions such as understanding the goals of digital transformation, addressing Employee concerns and reservations, planning huge business changes, and more.
Answering digital transformation dashboard questions in a timely manner can help organizations in many ways; It can enable COOs to:
- Define organizational goals and assess how the ERP system can fit in to achieve those goals
- Submit ERP cost-benefit analysis report to management and assist in realizing in-company purchasing
- Understand current pitfalls and challenges, and accordingly develop a project plan for successful ERP implementation
- Get a clear idea of the investments to be made across ERP licensing, implementation, tools and techniques, support, maintenance, and training
5 essential questions about digital transformation
The benefits of digital transformation of ERP can be very beneficial for businesses, completely changing the way they conduct day-to-day operations. However, given the complexity and time-consuming of such projects, aligning the digital transformation of ERP with the overall business strategy is critical to success. Here are 5 essential ERP digital transformation board questions that operations managers must answer:
1. What goals does the organization expect to achieve from implementation?
There is no doubt that ERP digital transformation projects can bring a lot to the table, but it is not just about implementing a few new technologies. Successful applications require more than simple technological alternatives; They need operations managers to have a clear view of how they expect technology to change business.
Before starting the implementation process, operations managers must identify the need for an ERP system: Does the organization need an ERP system to improve operations? Enhanced data access? Boost employee engagement? Enable Top Revenue Growth?
2. What steps should be taken to internalize ERP technology?
Enterprise Resource Planning (ERP) digital transformation projects laid the foundation for massive improvements to operations across the enterprise organization; They introduce many best practices to enhance efficiency, improve performance and maximize value from modern technology. However, achieving digital transformation using ERP requires operations managers to do more than just select and implement a technology system.
It requires them to understand the changes that must be made to accommodate the new technology: what is happening to existing systems. Do major process changes need to be made? Does the organization have to prepare for downtime during the implementation process?
3. What is the change management approach to follow?
After identifying the changes that need to be made to support the ERP, it is essential that operations managers assess the risk tolerance for change and have an effective risk/change management process in place before the transformation begins.
Given the number of changes that an ERP system can bring about, it is important for operations managers to understand the magnitude of change as well as the risks associated with it; They need to build a strong organizational change strategy, communicate changes and training plans, so that users can be aware of them and prepare accordingly.
4. What budget should be allocated to the ERP digital transformation project?
When it comes to implementing an ERP system, many organizations just include licensing costs in their ERP budget – without realizing that ERP entails much more than just licensing costs. Operations managers must be aware of all costs to prepare a comprehensive portfolio
This will help the organization in allocating the appropriate amount of budget while ensuring that there is no delay in the project due to budget issues.
5. What is the expected timeline for the ERP transformation project?
ERP transformation projects are very complex and time consuming. Operations managers looking to drive ERP success need to be familiar with every task that needs to be done: from creating a feasibility study, to creating a project plan or roadmap,
Operations managers also need to consider aspects such as system or process upgrades in addition to ingesting and migrating data.
Ensure a successful transformation
Due to the advantages of digital transformation, organizations around the world are leading efforts in adopting modern ERP systems to modernize them
But despite best efforts, a lot of investments in digital transformation fail. This makes it critical for operations managers to build a clear strategy and direction – to avoid the confusion and complexity that accompanies digital ERP transformation. Addressing some of the critical questions on the digital transformation dashboard is an important aspect of ensuring that the transformation is timely, accurate and within budget.
Interested in implementing an ERP system to support you