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How to calculate and realise the ROI for ERP implementations.

All business cases need a return on investment (ROI) calculation or justification.
For doing ROI calculations on significant implementations such as ERP or CRM, there are ROI calculators available such as this one from
Here is the link
However, the results from such tools are often too optimistic.
Their assumptions don’t seem to take into account the other factors that influence the ROI.
A more straightforward way is to list down all the pain points and identify which pain points will be taken away by the system (ERP, CRM or a similar system).
Then quantify each pain point with a dollar value.
That will tell you what the real ROI will be.
Many organisations check the potential ROI when they put together a business case but don’t check if they realise the ROI after the implementation.
If you list the current pain points with dollar figures, you can track the ROI after the implementation and see if you are getting the benefits.
If you don’t track, you will never know if getting a new system has paid off.
How do you measure ROI in your business?

Mani Padisetti

My secret ingredient is that my joy comes from seeing others succeed. This means everything I do is in my client’s best interest because I genuinely care for them and their business like it is my own. It is what has enabled Digital Armour to establish long and healthy relationships with our customers, win awards and become a preferred partner for Telstra and Microsoft.I have 20yrs experience running my own business. I know the pitfalls and how to avoid them. I recognise medium-sized businesses don’t have corporate budgets, and I understand their needs and priorities. This is invaluable to my customers.I believe in serving humanity by positively impacting the people I work with, the customers I serve, and the wider community. It’s an ethos that permeates through Digital Armour and our team of 50 employees.

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