It doesn’t take long for businesses without an ERP system to realize their internal processes are either not working, take too much time to administer, or are completely different from one area to the next. A well-designed and implemented ERP system can reduce costs through automation, reduce work and rework using one date set, and reduce the time and effort needed to complete routine and administrative tasks. With less time required to complete business tasks, business leaders can focus on working on their business and not within it. However, ERP systems are not intended to be static once implemented. 

With technology continually changing, coupled with changing business and user requirements, ERP systems need to be continuously evaluated and optimized. 

What is ERP Optimization

ERP optimization is when a business makes a conscious effort to review its existing ERP system and processes. This review includes ERP end-users across the organization to determine gaps in functionality, new requirements and identify opportunities for improvement. With business and user requirements identified, businesses can work to optimize their existing ERP system. 

ERPs systems are designed to be modified and tailored to the specific needs of a business. Therefore, when an ERP needs to be adjusted or optimized, a company can make the required changes within its existing ERP system. This flexibility reduces the need to implement a new ERP system or manage certain business functions outside the system to meet their changing needs. 

Why You Should Optimize Your ERP System

The value in optimizing an ERP system is the same value as having an ERP system in the first place: increased efficiency, greater productivity, improved reporting, less human error, higher quality of data, and the list goes on. It is critical for an ERP system to be continually optimized, given technological advancements and ever-changing business requirements. 

Maintain the value of Your ERP System

Quantifying an ERP system's return on investment (ROI) and subsequent ERP optimizations is difficult and will differ depending on the industry and business. A

study by Nucleus Research has shown an average ERP ROI of over $7 for every dollar spent on an ERP system. This is an incredible return by any standard; however, with technology and businesses constantly changing, ERP systems need to be continually optimized to maintain their value. 

Everything is Changing - Including Your Business

Businesses have changing needs and requirements driven from both internal and external factors. For example, a rapidly growing business may have an ERP system that worked well in the past but no longer provides enough support and functionality. At this point, a business needs to take a hard look at what they need their ERP system to do both today and down the road. 


Thankfully a business doesn’t need an entirely new ERP system when its needs and technology changes. ERP systems allow businesses to add functionality and optimize existing processes when required. 

Where to Start Optimizing your ERP System
In a perfect world, companies would encourage a business culture where improvements and continual optimization were core values. In reality, we know that day-to-day activities can make us lose sight of important strategic tasks like optimizing an ERP system when we’re continually putting out fires. 

The process of optimizing an ERP System should not start at one point and end at another. Optimizing needs to be a continual process where businesses encourage their employees to identify and validate gaps for optimizations, as well as having a well-known internal process to move forward with identified optimizations or not. 


Nolan Business Solutions is Your ERP Optimization Partner
Regardless of the type of business you have, an optimized ERP system will increase productivity, save costs, improve business operations, and much more. If your ERP system was built for your business five years ago, and not the business as it is today, it is time to optimize your ERP system with Nolan Business Solutions.

Nolan Business Solutions offers optimization solutions that will improve your financial processes, inventory solutions, accounting, and more. 

Book a free consultation or demo today, and our team will be in touch to discuss how we can help with your business transformation.


Liked this article? Here are three more articles about growing your business and reaching success!

  • Why Modernizing Your Businesses Software is a Must in 2022
  • When to Use an ERP System in eCommerce



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