The existence of an underperforming ERP system is often recognized by certain elements within operations. The existing ERP system adequately supports the processes for which it was initially implemented. However, expanded processes are addressed through often manual means.

Underperforming implementations result from at least two different scenarios:

1. An ERP system is implemented for one purpose (i.e. accounting), but business needs outgrew the single-issue implementation.

2. Additional applications or modules are needed to address business growth. Growing companies often increase their usage of information contained in an ERP system, but sometimes fail to address necessary process changes.

For example, an ERP system implemented to provide accounting support is missing the module that provides source transactions, such as inventory issues and receipts. For accounting purposes, the recording of inventory transactions needs only to occur on a monthly basis. If the company subsequently attempts to use the inventory balances to support production needs, balances will not reflect what’s actually available at any point in time. The timing differences between accounting needs and real-time accuracy required by production and material planning cause serious process problems.

Addressing underperforming implementations requires company recognition that it has additional processes that would benefit from ERP system support. Like a broken implementation, addressing an underperforming system requires staffing what is often a smaller project than the initial implementation, but still requires many of the same specialized functional and technical skills.

What really matters is understanding the state of your ERP implementation to identify where you are in comparison to where you wanted to be, and consequently defining a path forward.

Defining a path forward requires that you:

• Investigate and evaluate your experienced business pains as reflected in your operations and processes.
• Determine whether addressing these issues was one of the reasons you implemented an ERP system. This may reveal additional issues in your organizational governance processes that need to be addressed.
• Investigate and determine what would have to change in order for your ERP system to address and resolve the problems.
• Generate support and commitment from management to proceed with remediation.
• Assess your in-house technology expertise and project management capabilities to determine whether an ERP partner is necessary.
• If internal resources are unavailable or you’re missing critical expertise…decide whether to partner with an ERP systems integrator OR individually staff a project manager, functional consultants and technical consultants to finish the project.