Problem solve Get help with specific problems with your technologies, process and projects.

Determining ROI for ERP solutions

Find out how interviewing ERP users can help determine if your new solution will achieve ROI.

Customers who deployed an ERP or CRM system in the last 12-18 months are ideal sources of information for determining...

ROI. These customers are references since they have implemented their systems long enough to realize the vast majority of benefits but not too long that they have forgotten how things were done before the new system was installed.

In interviewing these type of customers you should follow these guidelines:

* Talk with a variety of different users to understand what tasks are impacted by the system; how much time per day those tasks used to take; and what amount of time is now saved. Not all time saved will be used productively, so you should deflate time saved by a factor of 0.6.

* For IT improvements, look for a reduction in Help Desk resources; less work linking disparate systems together; fewer people required for system monitoring; fewer patches; and perhaps even less system downtime.

* For operational savings look for a reduction in such expenditures as Express Mail, telecom costs and travel costs for meetings.

* For revenue-related benefits look for faster time to market, better management decision-making, improved inventory control and churn.

In conclusion, there are four general categories for savings: user productivity, IT staffing, operational efficiencies and revenue improvements. The best way to get data is to interview real users. Other sources for ROI analysis would be vendor case studies, trade associations and magazine articles.

This was last published in March 2003

Dig Deeper on SAP ROI and TCO

PRO+

Content

Find more PRO+ content and other member only offers, here.

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

SearchManufacturingERP

SearchOracle

SearchDataManagement

SearchAWS

SearchBusinessAnalytics

SearchCRM

SearchContentManagement

SearchFinancialApplications

Close