Any business decision should prioritize return on investment (ROI), and ERP implementation is no different. Before moving forward with any ERP system implementation, it’s essential to sit down and evaluate the potential return on investment. What are the expected costs of implementation? How will the new system improve efficiency and productivity? In some cases, the ROI may be immediate and apparent. In others, it may take some time to realize the full benefits of implementation. However, taking the time to evaluate ROI carefully can help to ensure that an ERP project is successful and delivers the desired results. Within ERP solutions, we’ll also highlight the ROI on SAP Business One.
What is an ERP?
An Enterprise Resource Planning (ERP) system is a software application that helps businesses manage their core operations, such as accounting, finance, human resources, and supply chain management. The goal of an ERP system is to provide a single, integrated platform that all departments within an organization can use. As a result, companies can improve collaboration between departments and reduce the business’s overall cost. In addition, an ERP system can help companies better monitor and automate their processes, leading to improved efficiency and productivity. While many different types of ERP systems are available on the market, they all share the same basic goal of helping businesses run more smoothly and efficiently.
How an ERP System Can Enhance Your Business
If you own or operate a small or mid-size business, you know you must coordinate many moving parts for operations to run smoothly. You must manage your staff, track inventory, and stay on top of finances — all while keeping your customers happy. However, coordinating these elements using separate software applications can be difficult and time-consuming. An ERP system can help streamline these processes by integrating them into a single software application. As a result, businesses that implement an ERP system often see increased efficiency, productivity, and reduced costs. In addition, an ERP system can provide valuable insights into your business operations, helping you to make more informed decisions about how to grow your business.
How To Calculate the ROI of an ERP System on Your Business
Companies often calculate their ROI before investing in ERP systems. Without this central metric, it’ll be more difficult to evaluate the success. More importantly, tracking your ERP’s return can help you make improvements in areas that are slowing down your system. ERP systems are generally a significant investment for an enterprise, so ensuring that the system will generate enough returns to justify the expense is key.
When calculating your ERP ROI, gathering an accurate estimate of your ongoing costs is integral to estimating your costs. There are a couple of key considerations to make when forecasting your ERP costs:
- The number of users: the number of users or employees is essential to calculate the cost using the ERP.
- The deployment model: cloud or on-premise deployments differ in licensing fees, with updates included in the cost for a cloud system.
- Implementation: initial costs of adopting the ERP system and technical requirements of software installation and user training
- Consulting costs: enhancing the rollout and ongoing support can improve the ROI of your ERP system.
By taking these factors into account, businesses can ensure that they have a clear understanding of the total cost of an ERP solution and can adjust the cost model according to business changes.
How to Ensure You’re Getting the Most out of Your ERP System Investment
Any business that wants to stay competitive in today’s marketplace needs a robust and efficient ERP system. Many companies aspire to achieve big visions. Without proper execution, the idea can’t come to life. Your ERP system is a key component of executing your strategy. And if your current ERP system could use some improvements, there are a couple of ways to enhance the return on your ERP system’s investment:
- Work with a reputable ERP provider: This will give you peace of mind knowing that you are working with a company that has extensive experience and a proven track record.
- Your ERP system should be customized to your needs: Off-the-shelf ERP systems may be more affordable, but they will not be as effective as those designed specifically for your business.
- Emphasize training in implementation: Ensure that your employees are properly trained on how to use the system. A good ERP system will be user-friendly, but your employees will still need time to learn how to use it effectively.
- Plan for maintenance: Make sure you have a dedicated team in place to manage and maintain the system. An ERP system is a complex piece of software requiring regular maintenance and updates to continue running smoothly.
- Access executive support: getting leadership buy-in is critical to driving widespread adoption of an ERP system.
To get the most out of your ERP system, we recommend you choose a solution like SAP Business One.
We’ll help you maximize your SAP ROI.
How SAP Business One Maximizes Your ROI
With SAP Business One, your company can take full advantage of the latest cloud technology to improve efficiency and agility. With a robust set of integrations with eCommerce, CRM systems, and more, the cloud-based platform is designed to help companies meet their operational challenges head-on. You can more easily track your SAP ROI by providing visibility into your business’s KPIs. That way, you can continue making data-backed decisions on how to roll out your ERP.
As a top SAP Business One reseller with industry-leading services and solutions, we at Support One are committed to helping you maximize the return on your investment in implementing your ERP.
That way, you can continue to implement ERP solutions like SAP, get the best ROI, and keep everything running efficiently with up-to-date analysis.