How to calculate the return on an ERP system before you buy, and make sure you realise it after go-live — for mid-size businesses planning their next stage of growth.
An ERP takes data from across the business and turns it into actionable information. Its return grows as your processes improve, which takes time to measure. That is exactly why calculating ROI before you buy is a crucial part of the decision.
A preview from the brochure — the five most common reasons an ERP investment underperforms its business case.
Key data sits across many sources in the business, so turning it into decisions takes manual effort and time.
Without ERP, even common questions, such as whether an item is in stock right now, become hard to answer.
Reports are assembled by hand, and teams wrestle with Excel formatting instead of acting on the numbers.
Keep running pre-ERP processes after go-live and you should expect the same performance, or worse.
Without ROI metrics and documented assumptions, first implementations often end in a re-implementation or tune-up.
Calculating ERP ROI means putting a figure on the value of the efficiency and capacity the system brings. That value comes from specific process improvements, so the method starts with your processes, not with the software.
Audit how work flows today, from banking to order processing.
Bottlenecks, re-keying and questions nobody can answer quickly.
The value of correcting each inefficiency is your return.
Agree objectives and ROI metrics, and document your assumptions.
Implement properly and fast, without carrying old processes over.
Track results against your baseline, then refine.
ERP software on its own rarely improves performance. The return comes from the process improvements it supports, so plan those first and the ROI follows.
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The brochure walks through the method. AVT's ERP Business Case Wizard runs the actual numbers — TCO, ROI and payback — for your business, in about ten minutes.
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