ERP Audit Systems
Every technical and business function requires routine assessment and the same applies to an ERP software. The only way to assess its efficacy and adaption within the organization is by carrying out timely audits. At SAPHive we undertake ERP audits at various points during the lifecycle of the software. The audit is critical in testing how the ERP systems are working within the organization and how these can be improved.
Why do an ERP audit?
To assess system integration
An ERP is meant to bring integration between the core departments of an organization. This is not possible without proper system mapping. To be effective it has to be an integral part of each department where employees log-in to record and extract information. Additionally, all this must be part of a larger system. ERP audits focus on extent of the system integration and how innate it is to the overall structure. Based on the audit findings we can see how its has been adapted across board and whether it is being used optimally.
To gauge the effectiveness of the training program
One of the biggest reasons for the failure of any ERP software is actually disinterest by the employees. If the system is too complex, tedious, time-consuming or difficult to work with, it becomes unsustainable on a long-term basis. ERP audits focus on how employees are using it, whether they find it helpful or a roadblock. Usually employee participation is a good barometer for the training program. Even a well-designed ERP software will fall apart if the employees are not trained adequately.
To assess the value-addition
ERP softwares can be expensive and implementing an organization-wide system can also cause disruptions. So, why do it? Because it can add significant value to the organizational processes and structure. The significant benefits of the program are well worth the inconvenience and the extra investment. But is the program working as it should? What benefits has the organization acquired.
An ERP audit quantifies these benefits, giving a tangible assessment of the improvements in the organizational functions. Instead of an indistinct idea of overall development, we have measurable and quantifiable results of the software’s impact. We can then assess if the benefits have met the objectives that are laid in advance. The results are compared with the key performance benefits (KPI) that were pre-decided.
To identify bottlenecks and find solutions
Studies show that most organizations fail to realize the full potential of their ERP software. Implementation is difficult, but using it to its full potential by a mostly inexpert staff is often too much to ask. In addition, there are bound to be bottlenecks in the running of any software. It could be to do with employees or the infrastructure available to run it. There could be other cross functional issues as well.
An ERP audit identifies these bottlenecks, where they occur and how they effect the overall working of the whole organization. Once these are clearly marked, we can start looking for solutions. Audits can show faults in training programs, system integrations and other key areas.
The truth is that any software can be hacked. But a really good one takes time, skill and resources. The purpose of timely audits is also to looks for chinks in the security armor of the software. This is very critical because lack of due security process can expose your organization to malicious attacks. For many organizations this is also a legal requirement.
Some of the key ERP audits carried out by SAPHive are:
Implementation Review: This is critical audit that is carried out soon after the implementation. The objective is to check whether the implementation has been carried out as per the client requirements and to its optimum capacity. Implementation is often a tricky subject where any gaps with organization-wide integration can topple the whole system. In other words, a faulty implementation can undo the entire effort. An audit is essential to identify any such gaps and plug these.
Business Audit: We check whether the business modules are in place. We start with KPIs that indicate controls and functionality within the business processes. These are essential when checking the performance of the ERP systems that boost the business.
Module blueprint: We map the various features of an ERP module. This is the roadmap that the system must be working under. Here we have components, functions and goalposts. In many ways, this is the blueprint of the software. This blueprint is the reference document that is used to check the working of the software, its features and functions. Does it include all the features? Does it adhere to the flow described in the blueprint? This is one of the elementary ways of checking the functioning of a software.
Security Review: Security of the software is one of SAPHive’s ERP audits essential components. We look for the smallest of fissures in the security apparatus. Any signs of trouble are immediately flagged and addressed.
Timely audits have multiple benefits and are essential in maintaining the functionality of the software. Call us to know more about our ERP audit system.