Using ROI Analysis to Justify ERP Replacement

Using ROI Analysis to Justify ERP Replacement

Companies looking to replace their ERP systems need to be able to justify their investment. One excellent way to justify it is to conduct a return on investment (ROI) analysis.

By performing a cost/benefit analysis, calculating the cost on one side and the return on the other, you can gauge how long it will take to earn back your investment. You must consider all costs, not just the prices included in vendor quotes. After determining the true cost, you should ascertain the benefits, both direct and indirect. Benefits might sometimes be difficult to measure because they are not always as easy to quantify.

Because proof of ROI is almost always necessary to get project funding, Acumatica has developed a white paper, “Return on Investment (ROI) Analysis for ERP Replacement” that offers insight into:

  1. An ROI methodology, a method of calculating ROI from the purchase of an ERP system
  2. ERP project costs – costs that go beyond the initial price tag, such as maintenance, upgrades, staff, training and on-premise vs. cloud ERP
  3. ERP project return – What are the direct benefits? Inventory reduction? Higher efficiency? Improved customer service? What are the indirect benefits? Improve retention when employees enjoy being able to do their jobs more effectively? Less chaos in the work place when it is better organized? More precision and smarter market moves?

ERP is a good investment, but you need to be able to prove it with data and concrete evaluative techniques. Business executives want to see results. You simply have to take them through a preview of the journey required to get to those results. To download the complete Acumatica white paper, visit

https://www.acumatica.com/roi-analysis-for-erp-replacement/

When you are ready to evaluate ERP systems, CAL Business Solutions can help. Contact us at sales@calszone.com or 860-485-0910×4.

By CAL Business Solutions, Acumatica and Dynamics GP Partner, www.calszone.com

By | 2018-06-14T09:05:14+00:00 June 14th, 2018|Acumatica, CAL ERP Tips & Tricks Blog|Comments Off on Using ROI Analysis to Justify ERP Replacement

About the Author:

Microsoft Dynamics GP (formerly Great Plains) is ERP/accounting software that grows with your business, easily integrates with other systems, and is quick to set up, customize and use. CAL Business Solutions is focused on Microsoft Dynamics GP: * Implementation * Integration * Customization * Data Conversion * Training * Support We are a practical, hardworking team that has built our reputation on giving honest advice, straightforward answers, and a software system that works. Serving companies nationwide—focused on Connecticut, Massachusetts and Rhode Island. * Northeast Dynamics Partner of the Year Winner * Dynamics Presidents Club Winner: Recognizing Top 5% of Partners If you are considering new accounting software, upgrading your existing system, or currently use Microsoft Dynamics GP and want expert support and training contact CAL.