Nowadays, Quantification Efficiency is desired by every level of manager, also the essential basis for investment decisions, so as to enhance the improvement of the enterprise’s operation, is one of the several theories by DN. James Harington, an expert in Business management consulting field, once said:
"What can't be measured, it can't be understood.
If it can't be understood, then it can't be controlled.
If it can't be controlled, it can’t be improved as well."
Oracle Value Realization - ERP Cloud Benchmark Report 2018 (Source: Oracle.com)
According to Best Practices from Oracle, based on the project’s goals and scope, we can choose one of the KPIs suggested by Best Practices (the picture below - Standard KPIs suggestion for each module, group by effective): at each KPIs, there are formulas guided by Oracle in order to measure and guidance which suitable group could use the given method.
Take an example in Accounting and finance module, we have the following targets: Improved Closing Process, Cash Conversion Cycle, Reduced Outstanding Payables, etc. These targets are all aimed at improving the operational efficiency of enterprises. This qualification doing can be implemented right after clarifying our project’s mission. The given data may not be exactly forecasted, but can be used as a guide to archive our goals explicitly.
Oracle Value Realization - ERP Cloud Benchmark Report 2018 (nguồn: Oracle.com)
Xem thêm: Thời điểm triển khai ERP thích hợp cho doanh nghiệp
When the system has been being implemented, according to the data gathered, the generated and calculated results can show us the value information. By the similar approaching way, every ERP project can archive its goals successfully with the suitable KPIs. Whenever our goals are determined, we should quantify it to the detailed KPIs.
Oracle Value Realization - ERP Cloud Benchmark Report 2018 (Source: Oracle.com)
In addition to the measured indicators through enterprise’s processes, when I supported or participated in operating and implementing at several foreign companies, they have a very good activity that periodically buys or consults many Effective benchmarking, new trends from reputable market research companies or references from prestige firms' data (such as Oracle funding to market research organizations to evaluate the effectiveness of Oracle ERP projects), which can be detailed in each industry-specific.
After that these companies will compare all the standard value with their own measured quantification. They will find out the gap, which help them detect their pros and cons, orienting the next actions such as which processes need to be improved, which indicators need to be controlled, etc… Those are the prerequisites for setting goals of new investment projects, all of which happen smoothly, regularly and continuously.
Author: Aidt Aron
Co-Founder, Solution Director
Aron Consulting Services
