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How to Calculate ROI for ERP Investment
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ERP vendors or consultants can typically provide detailed ROI analyses; however, at a very high level it's good to keep in mind the following:
1) Calculate time spent per user
2) Calculate cost per user
3) Calculate repetition per user
In other words, if an employee spends 8 hours per day keying in 15 invoices, you can calculate the cost of this person performing this action over time. Now, consider how this work is reduced by implementing ERP, and you can estimate your cost savings.
0
0
SCORE
ERP vendors or consultants can typically provide detailed ROI analyses; however, at a very high level it's good to keep in mind the following:
1) Calculate time spent per user
2) Calculate cost per user
3) Calculate repetition per user
In other words, if an employee spends 8 hours per day keying in 15 invoices, you can calculate the cost of this person performing this action over time. Now, consider how this work is reduced by implementing ERP, and you can estimate your cost savings.
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