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 panorama-consulting.com.
Here is the link https://lnkd.in/gfzTvvs
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?