KEI&S

M26BuildTechnology· Module 2

ERP: What It Can and Cannot Fix

A new ERP was supposed to fix reporting and stock. A year later, staff still keep spreadsheets alongside it.

  • Fix
  • Scale
  • Grow
  • Technology
  • Operations
  • ~5 min · Checklist

The business problem

ERP systems are often bought to solve problems that are really process, data or ownership problems. The system copies undefined processes and bad data, staff find workarounds, and the business concludes the software is the problem.

Why it matters

ERP is one of the largest investments a growing business makes. Understanding what it can and cannot fix — and preparing the processes and data — decides whether it pays off.

What you will learn

  1. Understand what an ERP does: shared data and enforced processes
  2. Assess readiness: processes, data, owners and rules
  3. Diagnose whether an existing ERP problem is system, process or data
  4. Decide between fixing, improving or replacing a system

Core questions

  1. Which processes will the ERP run, and are they defined?
  2. Is our product, customer and supplier data clean and consistent?
  3. Who owns each part of the system?
  4. Why do people keep spreadsheets alongside it?

Work through the module

CaseWhat is happening?

Wholesaler, 50 people · Illustrative teaching case

A year after implementing an ERP, a wholesaler's staff still keep parallel spreadsheets. Product codes are inconsistent, approvals are bypassed and nobody trusts the reports. Instead of replacing the system, the business cleans product data, redesigns three processes and reconfigures the existing ERP to match.

Full teaching case: The ERP That Didn't Fix Anything

DecisionWhat does the leader need to decide?

Replace the ERP, or fix the processes and data around it?

FrameworkHow should they think about the problem?

Fix, improve or transform

Fix: the system has a specific fault. Improve: the system works, but processes and data around it don't. Transform: the business design has changed and the system no longer fits. Most ERP complaints are 'improve' problems.

ToolWhat can they use?

ERP readiness and health checkChecklist

  1. Core processes mapped and agreed
  2. Master data clean: products, customers, suppliers
  3. Owners for each module
  4. Approval rules defined
  5. Reports defined before configuration
  6. List of spreadsheets kept outside the system, with reasons
ApplicationHow does it apply to their business?

Apply it to your own business:

  1. List every spreadsheet kept outside your main system
  2. Ask why each exists
  3. Classify each reason: system, process or data
ImplementationWhat changes?

What should change in the business:

  1. Fix the data and process causes first
  2. Reconfigure the system to match the agreed processes
  3. Retire each spreadsheet once the system covers it
ReviewDid it work?

How to tell whether the change worked:

  1. Has the number of parallel spreadsheets fallen?
  2. Do managers trust and use system reports?
  3. Are processes followed in the system without workarounds?

After this module you should be able to decide

Replace the ERP, or fix the processes and data around it?

And leave with: An ERP readiness check, or a fix plan for the ERP you have.

Sequence · Technology

  1. Technology Strategy
  2. ERP: What It Can and Cannot Fix
  3. CRM
  4. Automation
  5. Integration
  6. Data
  7. AI for Business Operations

Part of these learning paths

Next step

Start with what is actually happening.

Tell us what is happening in your business. We will help identify the appropriate next step.

Start With Your ProblemTake the Business Diagnostic
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