Implementing or improving your BPCS ERP solution can help your organization to:
- Minimize operational cost
- Boost productivity
- Provide features to automate tasks and save energy and time
But having a dedicated BPCS ERP system, which is also one of the most popular ERP systems integrated into your business operations, requires an extensive amount of investment.
The licensing, training, implementation, and maintenance can raise the total cost of ownership of an ERP system. So, does that mean you should not include powerful BPCS ERP solutions in your business workflow?
Of course not. Why would you want to remove a business asset that provides multiple benefits to your business right?
So, how can you measure if your ERP system is valuable to your business? How can you calculate the ROI of the ERP?
Don’t worry. We’ve got you covered.
We’ll discuss the simple steps and factors you need to follow to calculate the ROI of your ERP system.
So, without further ado, let’s get started.
Steps Involved in Calculating ERP ROI
The ROI can be calculated by comparing the implementation cost of the ERP solution to the benefits of implementing an ERP over a specific time.
The larger the quotient of anticipated returns of ERP divided by the ERP cost, the better it is for your business. You’ll have a better view of the productivity of your business and can take long and short-term decisions based on the calculation.
You need to calculate two factors to get your desired ROI result:
So, you’ll be able to calculate the ERP ROI in three simple steps.
- Calculate the ERP returns by estimating all the benefits your organization will get directly or indirectly.
- Calculate the ERP cost by underlining major and minor factors like hardware, maintenance, integration, and consultation costs.
- The last step is to divide ERP returns by ERP costs to get the desired ROI results.
The simple these steps sound, the reality can be completely different from calculating the ROI of an ERP system; you need to bypass multiple misconceptions and challenges.
To help you with this aspect, look at a few things you need to keep in mind before starting the ROI calculation process.
Read More: https://www.integrativesystems.com/calculate-roi-of-erp-systems/