Key Factors to figure out the ROI on ERP software
When you decide to invest in ERP Software, you have to make sure that the return on investment (ROI) is well worth it. Think twice before spending money especially in business. Based on our market study and expertise, we could identify 3 key factors to figure out the ROI on ERP Software investment.
- Minimal IT Spending: Mainly two things comes under IT spending, Software related and Hardware related. Since the ERP software is an application that covers all the areas of your business, you need not have to purchase the individual application for each department. While using an ERP, all of your business data will be handled by a single software package. It will reduce the amount of redundant data stored on servers. So need not to purchase a high-end server which could be a burden for many SMBs. The net effect of having a single and robust ERP will be the reduction in Licensing costs, Hardware expenses and Downtime due to software maintenance.
- Identifying Productive and Non-productive Areas: Various analytics tools available in the ERP software will help you identify both productive and non-productive areas of your business. When you identify the successful elements of the business, you can take the decisions to expand or take advantage of those areas. Identifying the non-profitable areas can help you streamline and improve them to achieve the common goal of the business. Else, you can drop those non-profitable areas altogether instead of spending time and money on it.
- Fastest Decision Making: The importance of the ERP application is to provide the business critical information to the business owners on a real-time basis. Successfully implemented ERP will provide this information consistently. It will help them make and strive to accomplish strategic business objectives. ERP will provide visibility to all areas of the business to make sure that everyone is working toward the business goal. A robust ERP can track metrics in order to make you understand that whether you are fulfilling your business goals and it can also help you streamline or improve processes if you are falling behind.
A well-structured ERP with Work Flow Management system in place will minimize the IT spending and hence it will increase the ROI on ERP investment.