Home HOW TO ACHIEVE RETURN ON INVESTMENT (ROI) FOR ERP
As we all know that ERP implementations is not easy task for both vendor as well as to the company who are investing so much of money resource to make sure every area of ERP implementation is successful and offer them with growth by streamlining their every department and business processes. The Biggest concern company motivates or demotivates to move forward with ERP implementation plan is the Return on investment so ensure long run benefits of an ERP solution.
One of the most important aspects of ERP failures are the cost and time in which the expectation is set by the company to complete with and ERP implementation. The reason cost is one of the aspect is that either the requirements are changed and companies ask for new development areas which make drastic changes in the implementation cost and it is but obvious the timeline is the main area to increase the cost of an ERP solution.
Let’s have a look on how one can achieve return on investment quickly from implementing an ERP solution.
While implementing an ERP software always make sure to concentrate on people and your business processes as we have seen that many organization ignore people and business processes and concentrate more on the technological aspects of an ERP software during the implementation. As during every implementation Globalteckz team ensures that at the end software Is able to handle features, business processes and motivates people to use the system. Failed ERP implementations is nothing to do with the technical features, as almost every ERP software offers you with flexibility of customization therefore mapping out business processes with your people ensures you quick return on investment.
There are many instances where companies who implement ERP solution underestimate the cost and timelines rather concentrating on go live and pilot testing. Always make sure to set up realistic expectations on the timelines of the project. There are many instances where vendor provide lowest timelines and lowest costing just to win the project. You can check with different vendors on getting a decent timelines for the project and make sure to add up a little buffer while proposing to your management as too much tight deadline will make implementation haywire. Getting a proper timelines estimation will ensure you to understand the cost involved in the project and based on that you can easily define the return on investment after ERP implementation
ERP implementation is not an easy task as it requires very much proper planning. Famous book Author J K Rowling said – “Understanding is the first step to acceptance, and only with acceptance can there be recovery.” It really make sense to understand where your finish line would be during ERP implementation as many times organization ask for everything in one go which is not possible to implement even by bigger companies. One must understand where the project phase or complete project will end from functional point of view. There are instances where organization don’t define the finish line and quit very early from ERP implementation which leads to failure. Therefore understanding the final areas of system implementation will make sure to calculate proper ROI on ERP.
As we said that before ERP implementation one should make sure to draw the finish line of the project further an organization should be flexible in the long term to accept the new change in the solution which ensure ERP investments to be fruitful in the long run. As we know change is the only thing which remain constant; Therefore one must understand that ERP software cannot be rigid, the functions and workflows changes over the time as new processes comes in for betterment.
If you are considering ERP implementation as a task for your organization or a tool where people can manage different business processes then you are not considering the complete benefits to take from ERP software. Set your expectations high with ERP software as ERP take your business to the next level. This way achieving the minimum will offer you with satisfaction on the investment you did on ERP implementation.
With the above points we would like to end our blog post we hope the above tips will offers you with greater return on investment for ERP software or any other software you implement.
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