10 May Is the ROI worth it to spend on ERP Softwares?
Resource planning is a fundamental tool to reduce operational costs and drive efficiency across your business. ERP softwares, especially modern ones, with their seamless integration into existing systems help businesses increase productivity, reduce costs and automate several tasks to save time. An ERP investment brings an unparalleled advantage to your businesses for growth.
An ERP project, therefore, is not a small investment for a business. Starting with licensing and going up to post implementation maintenance, the costs are significant enough to warrant a question: does the ROI justify the costs? And if so, how does an ERP software deliver ROI? Let’s look at some of the key ways in which an ERP software delivers ROI for your business
A major advantage of an ERP system is the automation of several tasks by the software. These repetitive tasks are usually dependent on manual intervention and an ERP’s automation of them frees up precious time of the human resources, enabling them to focus on more important business areas, thus impacting the overall productivity of your operations.
ERP is a data driven software and as it integrates with your business processes, it streamlines your operations channels. This process also gathers data into your operations as they are and an intelligent ERP system is able to decipher trends and provide you with valuable insights that enable informed decision-making for business leaders.
Realtime Business Intelligence
Most businesses run on the collective efforts of siloed departments and human intelligence. A business with a modern, smart ERP solution in place, is a more unified entity, with a centralised database and intelligent analytics. ERP software is essential in providing real time visibility across processes to the key decision-makers.
Cost Efficient Operations
Driving cost efficiency in business operations is only the logical outcome of an effective ERP software. Having visibility across all aspects of business, neutralised redundancies, and updates on maintenance costs for inventory and machinery etc, help you bring down expenditures for your business.
How do you figure out the ROI on an ERP Software?
Calculating ROI on any expenditure, especially something like an ERP Solution, goes beyond monetary calculations alone. The parameters of efficiency and productivity are important considerations in this calculation too. The willingness to calculate ROI on a major investment such as ERP, is a great indicator of a business’ awareness and continuous improvement.
Speak to our in-house team of ERP experts to understand how ERP can help your business grow.