Microsoft Dynamics ERP

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The ERP system is the backbone of a company – it is the system that supports main processes such as finance, order-to-cash, procure-to-pay, inventory management and manufacturing.

Companies often have complex and old ERP systems with many customisations and complex integrations. This is the result of many years of enhancing the original ERP system due to new business requirements and acquisitions/divestments.

The ERP system is often seen as an old, inefficient system that no longer meets the business' requirements and even hampers the companies' ability to pursue new business opportunities.

At the same time, ERP projects are perceived as risky and costly projects that are often delayed and put significant strains on key business resources in the organisation. Hence many companies have been reluctant to invest in ERP and have instead focused on CRM, business intelligence and automation solutions that are typically less risky and are seen to have a better business case both short- and long-term.

As a response, the ERP suppliers have made significant investments over the last ten years to bring innovation into their solutions, for example, real-time analytics and reporting, intuitive user experience as well as cloud versions that promise simpler and more efficient implementation and operation. The focus is currently on making ERP systems 'intelligent' by using AI to help users and automate processes since this improves quality and reduces manual effort.

However, many companies have not yet taken advantage of these innovations and are stuck with an outdated ERP system.

Lars Lindberg

Partner, Advisory

KPMG in Denmark

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What is an ERP system?

ERP is an abbreviation of Enterprise Resource Planning. ERP systems hold master data on customers, products, suppliers, chart of accounts and fixed assets as well as transactional data on sales orders, purchase orders, production orders, inventory management movements, customer invoices, supplier invoices and financial postings.

ERP systems have close integration between logistics processes and finance, so that a logistics transaction automatically generates a financial posting, and the ERP system is the core system for financial reporting. Some of the leading ERP systems on the market are Microsoft Dynamics 365 Finance & Operations, SAP S/4HANA and Oracle Fusion.

We can help you plan and execute how to improve your ERP system

We help our clients succeed with their ERP improvement/business transformation programmes. Our services are divided into three core areas:

We assist you in all phases of ERP implementation from strategy to quality assurance, where we advise on how to mitigate the risks and manage the system implementation partner.

We can help you get in the cloud by implementing Microsoft Dynamics 365 Finance & Operatios. We use our preconfigured best practice solution KPMG Powered Enterprise and our global delivery network.

We bring a powerful project management toolbox and provide ERP project management services, where we take on project management roles on behalf of our clients.

We are ERP specialists and project managers with a business mindset. We understand both business and IT, and we thrive in the intersection between these functions. Below you can read more about how we deliver on each of our three expert areas.

KPMG can guide you throughout the entire ERP improvement programme and assist you in all phases of implementation. From the initial phase where we define the strategy and roadmap for the ERP improvement, during the planning and preparation phase, and then during the execution and benefits realisation phases. Our services include organisational change management, data migration, testing and training as well as preparation for handover to ongoing support and maintenance.

We also provide independent quality assurance of current ERP projects, where we are independent of the implementation partner and provide unbiased feedback that helps you succeed with the project.

As part of the quality assurance we

Assess if the project is on track to meet milestones and deliver expected benefits and value
Provide recommendations to improve project progress and mitigate risks.

KPMG is your end-to-end Microsoft Dynamics 365 implementation partner taking responsibility for both technical and business-related implementation activities.

We use our preconfigured best practice solution, KPMG Powered Enterprise, and our global delivery network to accelerate the project. We implement best practice processes supported by standard D365 functionality that meets your business requirements.

Our implementation methodology has four main phases (Vision, Validate, Construct, and Deploy) and includes all required implementation activities with predefined templates and tools for effective implementation, for example:

Transformation strategy and target operating model
Process validation, requirement analysis and solution design
Organisational change management
Data migration
Configuration, test, and training
Cutover plan and deployment to production
Hypercare and transition to support.

Our people are certified functional consultants, solution architects or developers. We use our nearshore and offshore delivery centres to provide cost-efficient delivery – and we often help our clients implement a new target operating model as an integral part of the D365 implementation project.

The scope of an ERP project is often very broad, it impacts users in many departments and has many dependencies with other initiatives in the company, hence project management of an ERP project requires many different skills and experiences, such as business and IT stakeholder management, business process understanding, implementation methodology and planning, and vendor management of external suppliers.

Most companies do not have internal project managers with the required skills and experience. KPMG has project managers who have specialised in this type of project and who can bring a powerful project management toolbox as well as their experience from similar projects. Our project managers typically have more than ten years of experience and in addition to their personal experience, they have access to a strong network of KPMG colleagues they can use for sparring on how to best address key challenges, risks and issues in relation to the project.

Activities would, for example, include: