13 July, 2021

ICG’s June webinar focused on answering the question, “Are you ever done implementing ERP?” You can view the full recording and slide deck by visiting ICG’s Resource Materials page. Or, we’ve recapped the webinar here:

It’s important to view every business outcome with the same approach — technology as the foundation of your business. Without a strong foundation, your business will not be solid. A big part of that solid foundation comes from having a solid ERP system (with accurate and up-to-date data). The ERP system provides the data set that allows you to measure the business.

An ERP keeps track and keeps score of things. If that information is no longer valid, how do you keep track to support the business? The result is often using side systems (or paper) or not maintaining the data at all.

A Data Dictionary is data about data. It ensures that terms are defined, documented, and kept updated (e.g. “When we say unit of measure, what do we mean? Do we mean each? A piece? An inch?”). You need to be consistent with definitions, so everyone understands what everything means.

When it comes time to upgrade or move to another ERP, how do you decide what makes sense to move? That’s why it’s so important to have this information pre-defined.

Two helpful definitions:
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– Static data: change slowly over time or doesn’t change (e.g. vendor address or lead time).

– Dynamic data: continually change and only as good as last update (there should be one version of truth and that should be from your ERP system).

Whether you’ve implemented an ERP, upgraded an ERP, or brought in new users, it’s important to not lie to your ERP! The adage of “garbage in, garbage out,” is certainly true with ERPs.

Behaviors to avoid:
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Examples of lies:

– Error: incorrectly entering data.

– Omission: not recording transactions or doing so long after they have occurred (may often occur from not understanding the process).

– Denial: not having accurate supply and demand dates on order and not having them synced with reality (may often occur from overwork or laziness).

– Fabrication: not having accurate master data on things such as lead times, planning parameters, and BOM’s.

Behaviors to adopt:
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To prevent lying to your ERP, it’s important to:

– Maintain the data elements to keep things current.

– Enter transactions into your ERP as soon as you can, and not skip anything.

– Ensure your Data Dictionary is continually updated. To do this:

Go screen by screen through your ERP, and field by field to identify valid fields, and start documenting terminology in a spreadsheet.
Start with something like your item master.
Unit of measure and other user-defined fields are critical.
There should only be one Data Dictionary and each subject area should be updated by Subject Matter Experts (SMEs).
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– Every week, each planner, buyer, or CSR should look at 1/52 of their items to ensure that all the fields related to their items are correct.

– The finance team should be reviewing account assignment on a continually recurring basis.

– The result of these double-checks should be accurate reports, KPIs, and an overall understanding of the health of the business.

Continuous improvement is key. It is tempting, though incorrect, to think that post-implementation, your ERP will be a resource that doesn’t need updating. With a disciplined approach to data, and expertise from ICG, your ERP will provide insights that will drive the success of your business.

To learn more about ERP upgrades, implementation, and beyond, contact your sales rep!