Return On Investment (ROI)

Nine Ways to Boost the ROI of Your ERP System

return-on-investment

ROI simply stated is the arithmetic quotient of the benefit you expect to receive from a project divided by the investment in the project

The benefit is the numerator and the investment is the denominator. To improve the ROI quotient, find ways to increase the numerator and/or decrease the denominator. These are the ways that an organization implementing and maintaining an ERP system can boost the ROI on their ERP investment:

Choose wisely

Decide exactly what you want the system to do and document it. If you can’t identify and quantify real benefits, stop right now and invest somewhere else. Be committed to this. Do the work. Do not start by cutting and pasting bits and pieces from RFP’s you find on the Web. Benefits ↑ Investment ↓

Commit to a thoughtfully designed implementation plan utilizing system experts

Make sure you give everyone on the team enough time to execute their parts. This will increase your investment but increase the benefits as well; far greater than 1/1. Benefits ↑ Investment↑

Be actively involved in the implementation project

Do some of the heavy lifting. This greatly increases your knowledge of the new system, reduces implementation costs, and strengthens your commitment to the project’s success. As system implementers, we really like to see this. Users that know the system get much more benefit out of it. Benefits ↑ Investment ↓

Implement the new ERP system in phases

Don’t jump all at once from QuickBooks into a fully integrated manufacturing system with demand planning and MRP. Investment ↓

License the ERP system on a subscription basis and host it in the cloud

This avoids much of the typical upfront costs of a new system. Investment ↓

Invest and reinvest in user training

An ERP system is a business tool used by humans. If the humans don’t know how to use the tool, there will be no benefit. Benefits ↑ Investment ↑

Extend the ERP functionality and information into other parts of your business, and to other users

Revisit the original project analysis to make sure you are receiving the benefits you had anticipated. Benefits ↑

Keep you system up to date with new version upgrades

This reduces downtime due to system errors and lets your employees be more productive. Benefits ↑

Expand the functionality of your system in ways that continue to provide benefits that exceed the related investment

The quotient for each added bit of functionality must be greater than 1/1. Benefits ↑ Investment ↑

An ERP system has no intrinsic value

It is a business tool. It is designed to provide benefits. Investing in an ERP system is just one of many investments you can make. Do your homework, make a decision, and commit to it.

Test-Drive NAV


The Microsoft Advantage

Microsoft Dynamics ERP has offered proven solutions for customers like you for more than 25 years, delivering capabilities that fit the way you work-so you won't have to change the way you do business.

Microsoft solutions offer you flexible options to deploy on-premises, in the cloud, or in a hybrid approach-whatever makes the most sense for you. Your hands are no longer tied to whatever your IT vendor is pressuring you to do with your own software!

Integrate your vital line-of-business applications quickly and easily, and enjoy the freedom to choose among a wide range of third-party software that runs on the Microsoft technology platform.

Get more value out of the other Microsoft products you already use because Microsoft Dynamics ERP solutions work like and with them.

Manage ERP cost predictability through cloud-based deployment options, user-based licensing, and by working with Microsoft partners who offer fixed-scope deployments and ongoing local service after the sale.

Microsoft financial stability, clear technology vision, documented product roadmaps, deep global experience with companies of all sizes in a broad range of industries, and our strong post-sale support programs allow you to plan your own technology future with insight and confidence.

Finally, we can also point with pride to thousands of real-life customers around the word who are turning their business vision into reality with help from Microsoft Dynamics ERP solutions.