There’s no approach around denying that firms need trendy ERP software programs, but their implementation prices are sometimes a matter of concern for many. To make the acquisition more convincing, you have to calculate the ERP system’s return on investment and decide whether it's actually going to be worth the spend.

We have added the guidelines to help you make your software program purchase simple and understand the ROI of the ERP system in an accurate approach.

Why Do You Need To Calculate ROI of ERP Implementation?

ERP system is implemented to scale back working prices, enhance productivity, and enhance process integration. In different words, the system is supposed that will help you run and manage your enterprise to earn progress and profitability in your organization. However, if you're unable to get anticipated advantages from the software deployment and it outweighs your operational costs, it's an incorrect selection to invest your hard-earned cash.

Thus, ROI analysis is a vital part of the ERP selection process. It offers you readability about how efficiently the ERP could be utilized and what benefits the system goes to convey to your corporation within the long and quick run to justify the investment.

Key ERP ROI of ERP Implementation Measurement Parameters

Return on investment or ROI isn’t nearly monetary acquire; it's, actually, a lot wider term that suggests progress in effectivity and productiveness of the operations being carried out by the corporate.

Let’s take an in-depth take a look at the parameters of measuring the return on investments.

  • Change in operation planning and management
  • Change in manufacturing effectivity
  • Cost of materials
  • Cost of labour
  • Sales income and gross margin percentage
  • Change in administrative prices
  • Cost of regulatory compliance

How ERP Implementation Delivers ROI?

ERP implementation requires preliminary upfront prices. However, as soon as the system is efficiently deployed, it helps you obtain advantages inside a brief time period whereas letting you acquire a transparent understanding of what you may anticipate down the road.

There are some ways to measure the ROI, and it varies from enterprise to enterprise. With that being mentioned, there are additionally few elements that are commonplace throughout the vast majority of the industries. Here, we’ve listed the most typical methods an ERP project can convey the most ROI to your enterprise.

Cost-Efficient Operations

Post-go-live, the ERP solutions allows you to measure the working bills for utilities, assets, inventory, equipment, and so on. Regular monitoring of this enterprise data helps you retain a tab on the workflows. Further, the detailed understanding of how every process capabilities and their bills empowers you to scale back their working prices, resulting in a more cost-efficient enterprise.

Organization-wide Data Sharing

A greater-collaborated workforce delivers more precise and on-point output.

One speedy effect of implementing an ERP system is that the system permits customers to add, modify, and uniformly share important enterprise data to the related departments or personnel within the organization. This seamless data sharing functionality will increase reliability and improves the standard of communication between staff.

Increased Productivity

An ERP Software automates enterprise operations. It eliminates manual intervention in performing repetitive and tedious duties, thus saving staff’ useful time and allowing them to deal with enterprise areas that need enhancements. Therefore, with the assistance of an ERP system, you'd be capable of utilizing your workforce more effectively and enhance their total productiveness levels.

Agile Decision Making

Modern ERP software permits you to access essentially the most important enterprise data in real-time. The system brings collectively each piece of data and evaluates them to generate correct reviews that can be utilized in creating enterprise plans and make decisions for bettering your day-to-day operations.

Improved decision making performs a vital position in deciding the best path for your group and make the most of the assets appropriately to maximise its productiveness and growth.

Greater Visibility Across Operations

ERP software helps you immensely with operation administration. It streamlines your provide chain and different enterprise processes to provides higher insights into what’s taking place in every one of them. This, in consequence, would allow you to get notified concerning the forthcoming points arising within the enterprise and will be shortly averted to attenuate its effect. Therefore, with the assistance of an apt ERP system, you'll be able to make informed selections to optimize expenditures, enhance revenue, and stay ahead of opponents.

Centralization Of Database

By integrating your core enterprise capabilities right into a one, enterprise-wide system, you'll be able to streamline each process. You aren't required to take care of independent methods for every division. The operations that were as soon as disorganized are actually more manageable.

This saves a lot of money and time related to coordinating data from totally different methods, coping with data redundancy, and straining further assets within the process are additionally averted.

Happier Customers

Customer satisfaction is the important thing to enterprise success. It is the important gas that retains your enterprise operating. The finest approach to enhance that is by offering clients satisfactory services and help every time they want.

ERP system would equip you with all vital instruments that will help you attain a better understanding of your customer necessities, offers with their grievance, and keep a long-lasting relationship with them.

Communication And Business Intelligence

Appropriately analyzing and decoding enterprise information isn't a simple job and requires lots of hard work if executed manually. Moreover, human intervention usually results in data redundancy and errors.

This will be eradicated with the assistance of sound ERP software. The system shops all enterprise data in a centralized database and permits you to utilize a wide range of inbuilt analytical instruments for producing reviews. This helps in improvising the communication throughout silo departments and make intelligent enterprise decisions.

More Productivity With Real-Time Data

One speedy advantage of implementing an advanced ERP system is that it permits organization-wide uniform movement of enterprise data. The cloud-enabled system lets you acquire complete access to standardized and dependable data in real-time from any location and system. This ensures that the data stored in it's all the time up-to-date. Thus, bettering collaboration throughout the departments and improve productivity.


The ROI of ERP implementation calculation is a problematic process. While analyzing the monitory investments similar to license charges, upkeep charges, and whole price of possession is essential, it's equally vital to concentrate on the quantity of effort and time invested in your ERP implementation. These, put collectively, supply a measure of success or in any other case of your ERP project. Thus, contemplating the intricacy of the process, it's all the time a good suggestion to take assist from the specialists.

We provide the perfect ERP software all over the world. Our team of consultants would allow you to select the best ERP system for your enterprise and analyze the ROI it's going to get you as soon as the project goes live.


Author's Bio: 

business solution centric Odoo Consultant and IT professional with about 11+ years of experience spanning Odoo delivery, Sales, pre-sales, Odoo product development, Odoo business consulting, outsourcing & ADM services in leadership positions.

• Has headed Practices for Enterprise Solutions ( SAP, Baan & Odoo )

• Experience across domains likeSales and Marketing, Logistics, Manufacturing, Retail, Chemical, Automotive maped to Odoo

• Extensive experience in large program delivery & business process transformation consulting (Odoo Consultant) for multiple programs

• Demonstrated experience in designing new product & service offerings and executing global Go-To-Market strategies for new offerings for new market penetration

• Proven leadership skills with balanced focus on people, processes & technology

• Pioneered the use of ERP systems in various Processing Industry

• Worked as Process Heads of Marketing, Sales, Purchase, HR, ERP Project deliveries and also worked as Business Heads for many companies like IBM, JKT, Denave India, FCS and presently at Apagen