Ensuring ERP Success
Despite the wide range of benefits, transitioning to a cloud-based ERP solution is not without challenges. This is a significant (and expensive) undertaking and realizing full value from a new generation ERP solution goes far beyond the technology itself. Technology is obviously important to the concept of value – especially given the inherent advantages of new cloud-based based ERP solutions compared to their outdated legacy counterparts. ERP technology alone cannot identify, achieve, or sustain value through – the right leadership, program assurance, end user engagement, and attentiveness to workflows and processes are required at every stage in the journey.
Keys to success include:
1. Empowering ERP focus groups. “Value” is a relative term. The merit or worth of a given improvement that results from implementing a specific change will vary from organization to organization depending on current pain points, unique strategic priorities, future plans, and a variety of other factors. Each hospital and health system will ultimately need to define what constitutes “value” from an ERP solution for themselves. This includes identifying areas of opportunity (e.g., value-based purchasing); defining the specific benefits that will be targeted (e.g., reduced variation); and determining how to quantify each targeted benefit (e.g., cost savings, increased revenue, reduced hours, etc.).
Establishing – and empowering – internal ERP focus groups with representation from stakeholders in FIN, HCM, SCM, and IT is essential to the process of identifying value and getting consensus on the organization’s unique requirements for an ERP solution. When the time comes to go to market or issue an RFP, these focus groups help ensure that demonstrations from ERP vendors address the specific pain points that are priorities for the hospital or health system.