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How to get more from your ERP investments

Learn how CPG companies can sweat the asset to achieve greater value in their ERP investment.

Overview

Enterprise resource planning (ERP) continues to be at the center of the chief information officer (CIO) agenda for large consumer packaged goods (CPG) companies striving to grow profitably. To achieve the required agility and flexibility to be able to expand to new markets and reach consumers in a volatile environment prone to disruption, businesses will need to squeeze out every opportunity for efficiencies from their backbone ERP.

Businesses must establish a new level of vigor as they determine how to enable more effective usage, adoption and quality improvement of processes and functions. They must adopt a “sweat the asset” mindset to consistently squeeze out every drop of value from ERP investment programs.

Background
Traditionally, very few companies address all phases of the ERP transformation in a business case. Even the measure of benefits generated was applied with different rigor and consistency within the same organization. Also, few CPG companies have initiated a continuous improvement process to ensure value is regularly and rigorously squeezed from ERP from end to end.

Today, CPG companies are focusing more attention on figuring out where they want to go before embarking on large investments involving transformation of their core ERP. They aim to maximize the benefits of ERP, wherever they are in the journey.

Analysis

Today’s convergence of cost pressures, volatile technologies and the need to adapt capabilities to respond to market changes proves the need to take a broader view of ERP. By putting the business case of an ERP transformational initiative in the context of the overall enterprise architecture, CPG companies can identify which capabilities will be impacted, and what evolution they will go through.

Recommendations
While the destination of high performance is the same for many CPG companies, the journey to getting there may be different based on a company’s current ERP landscape. From newly implementing, expanding, consolidating or fine-tuning ERP systems, Accenture brings the people, process and technology assets to accelerate the path to benefit realization.

Our value realization approach, assets and methods for CPG include:

  • ERP Value Diagnostic to benchmark business capabilities, measure KPIs and value levers.

  • ERP Value Design that ranges from building the business case to designing the operating model.

  • ERP Value Implementation to define the delivery plan, tracking, management and metrics.

  • Post-ERP Value Assessment to assess solution fit, process, people and technology.

By taking these steps, CPG companies can continually get more from ERP as they evolve their business capabilities.