Getting an ROI on ERP Implementation

Purchasing a new ERP system for your organization is no small order. You will likely spend a great deal of money and time implementing it and training your staff to use it. Knowing that, you need to make sure you are getting a return on investment (ROI) on your ERP implementation. Otherwise, you will have essentially flushed money down the drain. Aberdeen recently surveyed 188 professionals at best-in-class organizations with ERP projects to see how they get the ROI they need to consider the ERP implementation a success.

Top Barriers to ERP ROI are:

  • lack of internal resources
  • pressure to customize ERP software
  • the need to reduce costs of implementation
  • the need to receive ROI sooner rather than later

Implementing ERP generally means that certain employees must be removed from their normal jobs to make it happen. The longer this takes, the less productivity the company will have during that time period. The key to ensuring it does not take too long is to have a plan that maps out the process in detail and that also leaves room for necessary adjustments.

KPIs for ROI in ERP

The key performance indicators for successful ROI on ERP are:

  • businesses processes are standardized and aligned with ERP implementation
  • ability to identify gaps between ERP functionality and other internal tech
  • consistent policies for classification/ metadata tagging of data
  • centralized project map and timeline for implementation process

In order to be effective throughout the ERP implementation process, project managers need to to use resources that can maintain the project scope and keep costs low. 70 percent of best-in-class organizations have dedicated resources in place throughout the entire ERP implementation.

To be successful and receive the ROI they need, organizations must have agile project management. They need dedicated resources that can address issues as they arise, but they also need a solid implementation plan from the beginning. With a solid plan and solid support throughout, ROI is definitely achievable.

Source: “Managing ERP Implementation Projects to Deliver Increased ROI,” Nick Castellina, Aberdeen Group, April 2013