Business Metrics for Oracle Application Implementation
Oracle Application implementation is always seen as an opportunity to reengineer the existing business Processes as well as to define and analyze the metrics for its success. These operational metrics are business driven and helps higher management for evaluating the project success. In short when you don’t have measurement you don’t know whether the implementation was a success or failure.
These KPIs (metrics) are benchmarks with qualitative or quantitative values that help an organization assess the effectiveness of the processes that have been implemented in the ERP system. However it may not be suitable to expect important improvement in these values immediately after the implementation. An organization needs to give itself the time to take up the changes brought about in by the ERP system to practically achieve the KPI targets
Few of the examples for these metrics are:
Order Management and Shipping
- Average Shipping time
- Backorder Amount
- Backlog Aging
- % of late shipment
- % of wrong shipment
Inventory
- Inventory Carrying Cost
- Tracking Supplier returns
- Reduce losses on returns
- Obsolete inventory
Procurement
- Contract Leakage Rate
- % Non Contract Purchase
- Unprocessed requisition Average Age
- PO Sourced to wrong supplier
- % of POpast Need by date
Payables
- Payable Leakage rate
- Late paid invoice
- % Discount taken
- Accrual reconciliation
These are the sample values for the business metrics. These operational metrics are specific for each module and varies from industry to industry. For each metrics we should be able to collect information like Metric, Definition, Industry norm, Values before ERP implementation, Values after steady state. Most of the implementation does not give enough stress to these metrics as the results are always visible after steady state. But it is worth investing the time on these metrics as it helps measuring and reviewing the success of the implementation.
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