Making ERP work harder

Enterprise resource planning projects are notorious for taking too long to implement, costing a fortune and not delivering the efficiencies they promised.

The real problem is that companies try to speed up its deployment and keep down costs by not installing the modules that deliver return on investment.

One opportunity to claw back some of the ROI benefits of ERP is to add functionality that will not increase overall cost of ownership but deliver savings.

You can understand why ERP customers are cautious about adding to an already weighty software investment. They have a solid operational backbone for the business, even if some of the higher-level benefits are not in place. Additional modules cost time and money to install.

If you are considering adding functions to ERP the advice is: 'If it ain't broke, don't fix it.'

ERP users are inundated by providers offering consultancy, re-engineering and additional services. Invoice processing addresses a quantifiable business problem with a defined ROI.

It is therefore more attractive to customers than a consultancy sale and opens doors that may otherwise have been closed to the channel.

These can include development opportunities within the accounts receivables department, or other document-based transactions that build on the same software.

New functionality will be taken on only if it can allay these fears and show true ROI from day one. ERP systems already receive data from accounts payable, but this is generally achieved manually, with all the downsides of extra costs and manual errors.

Advanced invoice technology can process all invoices automatically, to achieve first-time processing of unstructured documents. This automates repetitive processes, while achieving a high level of easy integration with existing ERP software.

There may be different work flows for different classes of invoices depending on value and ordering source. There should be a method of filtering the types of documents and work flows available to any individual or department.

At every stage, data should be checked, ensuring that all information is verified because it is fed through various business units.

This enables clients to move towards real-time management control, reducing processing times and costs while improving data accuracy.

The types of information to be extracted from the body of the invoice can be customised according to the client's needs.

High-quality reports and supervision tools deliver data that should lead to improvements in client and supplier relationships.

Investment is relatively small and delivers ROI within 12 months, helping to justify the investment already sunk into ERP.

Colin Dean is UK managing director at ITESOFT.
www.itesoft.co.uk