The Cost of ERP – What Makes the Most Sense for Your Business - Part 3
April 07, 2016
When beginning your quest to purchase an ERP solution, building a case for the cost benefit should be priority. However, focusing on all of the bells and whistles of a new ERP often overshadows looking at an actual cost benefit and understanding the overall value you are getting with your ERP. In part 3 of this blog series, we look at selecting a Best-in-Class ERP.
ERP COST BENEFIT EXAMPLES AND SUCCESSES
Best-In-Class - Set Your Business Up to be the Best
Overall, organizations need to be using as much of their ERP investment as possible. A Best-In-Class organization may have detailed plans for what they hope to accomplish with their ERP. However, if a solution that employees cannot actually use is selected, those plans become useless. According to Aberdeen Research Group’s report, How ERP Can Make Your Job Better on a Day to Day Basis, top performers will select a solution that enables users to take advantage of functionality designed to improve their jobs on a day-to-day basis.
The same Aberdeen report states that as compared to all others, leading companies are:
2.1 times more likely to have an ERP solution that is easily tailored to support business change.
61% more likely to enable users to access reports in a self-service capacity.
2.6 times as likely to have pre-configured dashboards and role-based homepages.
14% more likely to have context-sensitive help and training for ERP.
59% more likely to have the ability to drill down to individual transactions from summaries.
The bottom line is that the best-in-class invest in an ERP solution that is easy to use. Even the most functional of ERP solutions can end up being a waste of money if employees can’t use it. A user-friendly ERP solution leads to a higher adoption rate among employees and the benefits of the solution will more quickly and profoundly exhibit themselves throughout the entire organization.
Is ERP worth the cost?
One of the most common causes of delay in purchasing an ERP solution is trying to figure out which software to use. While having access to the trendiest features and functionality of an ERP solution sounds like the most obvious reason to invest, sometimes that doesn’t always make the most sense. It is up to each individual business to analyze the costs of purchase and implementation and compare it with the net annual benefits to calculate their ERP pay back opportunity. Finding the functionality that works best for your employees and empowers them to utilize all of the ERP features for better business is what’s going to pay for your system.