When faced with the decision to purchase and implement new technological solutions, the first thought that comes to mind is, “What’s the ROI?” Generally, ROI is expressed as a number – after all, the formula is ROI = net gain/cost. Let’s say you buy a $5,000 software system and you then go on to make $7,500. That’s an ROI of 50%!
Sometimes, the sources of ROI are less obvious. However, that doesn’t mean that they’re any less important or that they shouldn’t be considered at all. Read on to learn how four hidden sources of ROI in your ERP implementation can transform your entire company, making it more profitable and sustainable.
If you’re looking into investing in an ERP system, you’ve read about all of the benefits that they bring to organizations. One of those benefits is higher productivity.
Productivity gains are considered a hidden source of ROI because they’re harder to quantify. However, they’re no less important than other advantages that ERP systems bring to companies. Read on to learn how you can harness the power of increased productivity thanks to an ERP implementation.
When it comes to calculating ROI for ERP systems, we tend to look at a dollar and cents amount. We think of ROI as a purely financial amount. If you’re saving this much money or earning that much more money than the cost of the ERP, then you’re getting a good return on investment.
However, that’s only one way to think of the ROI on ERP systems. Another way of looking at it is to look at the less tangible or quantifiable benefits that ERP systems bring. Read on to learn about how to assess less obvious sources of ROI.
During his or her pitch, your ERP salesperson most likely highlighted statistics about how much you can save – “you’ll see a 20% reduction in this cost” or “you’ll see a 40% saving in this area.” That tends to be an effective sales approach and gets results, because everyone wants to achieve these goals.
Do you remember the “Where’s Waldo?” series of books? Each page was filled with an illustration of a crowd of people. Hidden inside the crowd was a tall, skinny man (Waldo) who wore blue jeans, a striped sweater with a matching hat and scarf set, and glasses. Trying to pick him out of a crowd of hundreds of characters led to frustration and eye strain, yet there was ultimately a sense of triumph when you located Waldo.
What’s the first thing that comes to mind when you hear the words “ROI” and “ERP systems”? Do you automatically think of how much money you’re saving because you’ve implemented an ERP system, or how much you’ve profited as a result of this technology?
One of the primary benefits of any ERP system is decision support. We might think executives make the important decisions. In fact, people at every level of the business make important decisions throughout every day. Use your ERP to help guide every user to the choice that leads to an optimal payoff for the enterprise.
ERP workflows will help your bottom line. We link the steps we are supposed to take in our process as connected ERP transactions. Errors caused by disconnects, when one person performs a transaction and a second person makes a transaction that doesn’t fit with the first, are usually eliminated.
Workflows can be a short series of regular tasks or a lengthy annual process. Whatever form they take, they can greatly benefit a business that wants to reduce errors and cost.
Microsoft Dynamics AX is designed to empower your people to be more productive and your systems to last longer, with the ability to scale to accommodate growth while delivering the insight you need to respond quickly in an ever-changing world of business.Simple to Learn and Use
Challenged to do more with less, many IT departments are finding that the cost of maintaining outdated, legacy business systems is simply too high. The cost of not having a system”or the wrong system”however, can be much higher. With the right tools in place, you can eliminate many of the costs associated with IT.
Control your IT costs with a business solution that can help you:
Microsoft Dynamics AX is built to help IT teams simplify and streamline common IT tasks, ease integration to help your business get the most out of its existing IT investments, and help reduce costs. Heres how:
Nucleus Research has found that Microsoft Dynamics AX customers achieve returns in areas of increased visibility, increased productivity, and reduced costs. 44% of Microsoft Dynamics AX Customers were able to reduce IT costs. Read the full report: The Real ROI of Microsoft Dynamics AX.