Any manager who decided to implement an ERP solution did this to improve his/her business and save monies, earn more monies and more customers. Monies saved, monies earned and more customers equals return on investment. (ROI) There’s no other reason to invest in an ERP solution except for a future return on investment (ROI).
An ERP has the ability to offer you great returns. But only if you use it properly. And at its entire capacity. Not using functionality is wasted money. According to statistics published on a LinkedIn ERP Group, more than 75% of companies purchase robust ERP solutions and only use sixty percent or less of the functionality. It’s like buying a large pizza and only eating half of it.
So when decide to make the step to implementing an ERP and you want to calculate ROI, you must absolutely take into account all these aspects:
- unexpectedly long implementation times due to unexpected roadblocks and training costs;
- factor in your business case if you are going to use just a part of ERP;
- the real training costs (if your employees aren’t well trained, they will not use all of the ERP functionality to its full potential);
- take all the time you need to explore all of your options and ERP solutions on the market.
As a friend of mine (salesman, of course!) always tells, „don’t sell yourself rapid”, by taking the first ERP solution that seems like it will work. Take the preparation and selection process seriously to ensure the longevity of the company.