ERP Optimization: Turning Investment into Value

Why ERP optimization is essential

Implementing an ERP is a major investment in time, money and effort. Yet many companies find themselves underwhelmed or frustrated once they put their systems into action.

Common challenges after implementation include:

• Underutilization of built-in features and modules that are already paid for
• System instability due to configuration errors or custom code defects
• Resistance to change from users unfamiliar with new workflows
• Lack of integration with other critical systems like banking platforms, CRMs or supply chain tools
• Technical debt from undocumented or inflexible customizations
• Poor data governance, leading to unreliable reporting and decision making

It’s important to note that no system is perfect the day it goes live, but these issues can erode trust in the system and derail adoption. This makes optimization not just beneficial but essential to achieving ROI.

Building a continuous improvement team

ERP optimization isn’t a one-person job. It requires a cross-functional team with both technical and business knowledge, as well as the decision-making power to execute projects successfully.

A successful ERP optimization team typically includes:

• IT executive: Sets the vision and supports ERP initiatives, including securing the necessary budget
• ERP architect: Designs enhancements based on both system and business proficiency and manages the optimization project backlog (Note: this role may be an external partner.)
• Developer: Builds customizations using technical knowledge of programming languages, integrations and IT infrastructure
• Business analyst: Bridges technical solutions with user needs and manages QA testing and training
• Business users: Provide feedback and validate changes through hands-on experience

Selecting the right business users is especially important. They should understand not just how processes work but why they matter. They must also be open to and advocates for change.

Managing change and user resistance

Change management is often the biggest hurdle in ERP optimization. Several strategies can help organizations overcome this issue.

Involve users in the design process so they feel a sense of ownership and control. Provide thorough training and documentation to build confidence, remembering that everyone at every level of the organization is learning the system as it evolves.

Clearly communicate the benefits of each change, not just to the organization but to the end users themselves. When users see how optimization makes their jobs easier—less data entry, fewer errors, faster processes—they will become advocates for the system rather than obstacles.

Best practices for ERP optimization

Along with selecting the right team and managing change, there are several best practices your organization can follow to ensure your ERP optimization program is successful.

• Use a consistent, structured project framework (e.g., Agile or Waterfall) to manage changes and ensure traceability.
• Measure and communicate optimization value using KPIs such as days to close, support issue volume and vendor performance.
• Evaluate whether the ROI of customization is worthwhile or whether standardization of processes is possible instead.
• Improve data governance through validation rules, access controls, consistent naming conventions, clear ownership of master data and regular audits.
• Harden customizations with documentation and improved error handling to reduce support issues and ensure scalability.

No matter what, make sure to align optimization with your business strategy, whether it’s enabling growth, reducing costs, launching new products or whatever your organization has in mind.

Real-world case studies

Several compelling examples were shared during the recent webinar:

• A parts distributor used an ERP’s built-in Positive Pay integration feature to prevent check fraud by automatically sending payment data to the company’s bank. This improved data quality and reduced manual intervention.
• A semiconductor manufacturer automated compliance checks against U.S. government blacklists, reducing delays and improving audit readiness.
• A Canadian distributor implemented landed cost calculations for an imported part to account for tariffs, enabling more accurate margin reporting and better business decisions in a changing market.
• A high-volume distributor replaced expensive middleware with direct ERP-to-ERP API integration, saving $240,000 annually and reducing month-end close time by two days.

These examples demonstrate how targeted optimization can deliver tangible business results through enhanced security, improved compliance, operational efficiency or cost savings.

Realizing the potential value of your data

ERP optimization is not a one-time project—it’s a commitment to your organization. As Trevor Kanwal of Crowe noted, “Once you're live on a system, it's not the end. It's just the beginning.” With the right team, tools and strategy, businesses can unlock the full value of their ERP investment and turn it into a competitive advantage.

Whether you've just implemented your new ERP system or are years into your journey, now is the time to ask: Are we getting the most out of our investment?

To learn more about how Associated Bank can help with your financial data needs, get in touch at Treasury@AssociatedBank.com.