ERP Systems

Return on Investment for Enterprise Resource Planning Solutions

A large scale ERP (Enterprise Resource Planning) solution can cost your company millions of dollars to implement.  There’s no other reason to invest in an ERP solution except for a future return on investment (ROI).  The point is that you implement an ERP solution, which improves your business and results in monies saved, more monies earned, and more customers.  Monies saved, monies earned and more customers equals return on investment.  But, how does one ensure an ERP ROI? 

To ensure an ERP ROI start by developing a business case.  This business case should identify the explicit need for an ERP solution, the potential risk factors, and financial costs and benefits.  Financial burdens, like unexpectedly long implementation times due to unexpected roadblocks and training costs, all need to be factored into the business case.  Training costs are often financial expenditures that aren’t factored into the equation.  It’s great to have a functionally robust ERP solution, but if your employees aren’t trained on the system then they will surely have trouble using all of the functionality to its full potential.  Not using functionality is wasted money.

All too often companies purchase robust ERP solutions and only use sixty percent or less of the functionality.  It’s like buying a gourmet hamburger and only eating half of it.  Why waste your time and money on something you won’t use.  And, if you’re only going to use a little more than half of the Enterprise Resource Planning solution functionality, it is important to factor this into your business case.

An Enterprise Resource Planning solution has the ability to offer great returns.  However, you must plan and prepare to achieve the largest and quickest ERP ROI.  Take your time exploring all of your options and all of the Enterprise Resource Planning solutions on the market.  Don’t sell yourself short by going with the first Enterprise Resource Planning solution that seems like it will work.  People get fired when they make hasty choices.  An ERP solution is a large investment in the future of a company.  Take the preparation and selection process seriously to ensure the longevity of the company and your job.  A well documented and prepared business case will also cover your ass if future problems arise.

Written by :

kristine H