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Advice for determining the ROI of your business’s ERP

Advice for determining the ROI of your business’s ERP

Because of the variety of possible enterprise resource planning configurations available, as well as the variety of advantages provided by such programs, figuring out the return on investment for a given ERP software system isn't always easy.

Based on the current operations of a business, these programs may provide marginal benefits in some areas and very significant improvements in others. While it can be easy to determine how time tracking software or barcode integration modules improve processes that previously involved a marked amount of manual effort, smaller positive changes in other situations may be harder to track.

Businesses with diverse needs, especially those in fields like manufacturing and fabrication, should consider the use of modular ERP software to increase ROI. Because systems like Microsoft Dynamics NAV allow businesses to select specific add-ons that address individual needs without having to increase spending in areas that are already well managed, usefulness and cost-effectiveness are both high.

SearchManufacturingERP recently discussed some concepts for helping to understand ROI as it relates to the software, including ERP implementation costs and other concerns.

Consider complete costs as well as benefits
Comparing the costs of an ERP system to its overall benefits needs to begin with an accounting of the total costs involved in the installation process. Recording license fees, training considerations and other secondary items are important, as is assigning a value to any delays that have occurred before use began. If unseen barriers to implementation have significantly forestalled the use of ERP, these need to be considered as well.

Because modular ERP systems can reduce time commitments associated with set-up, education and maintenance, businesses with an eye on keeping costs low should investigate these solutions when considering the use of any type of ERP.

Keep long-term costs low with assistance from a trusted provider
It's important to start off on the right foot with ERP installation and use. The best users of these systems are more likely to have a an ongoing training component included in their overall strategy, according to research from Aberdeen Group. Additionally, top software suppliers will work with their clients to promote a culture of knowledge and understanding that enhances the effectiveness of the systems being used.

Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing: Defining the ERP Strategy" from the DMS website today.

Posted in: ERP Solutions

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