Determine the Business Value of ERP



Return on Investment (ROI) is one of the most important considerations for the company management. After all, any investment must yield some value to be worthwhile. But what about the ROI of an Enterprise Resource Planning (ERP) system?

Understandably, management may be hesitant to invest in a costly software solution like ERP. Like any new technology, ERP systems take time to implement and require all workers to be adequately trained. Is the value of ERP really worth the cost? Answering this question comes down to understanding two things: what kinds of value ERP brings to your company and how to attach a dollar amount to them. In this post, we’ll cover both.

Adding Value to Organization

Before understanding the value of an ERP solution that brings to the organization, first there is a need to understand where the existing challenges and pain points persist.

When weighing the potential areas where ERP will bring value to the business, one should consider the following:

Data Access

Does the leadership team have access to the necessary data and information to make quick decisions? Management needs real-time information and data-driven insights to support fast decision-making. ERP delivers value to decision-makers by tracking real-time data across the production processes, and storing that data all in one place to make it easily accessible to any decision-maker.

Current Supply Chain Visibility

ERP delivers value by providing greater visibility across the entire supply chain such as inventory shortages, production delays, or delivery errors. With real-time insights about materials, schedules, and deliveries, one can anticipate and adapt to sudden changes in the supply chain, before they make a dent in the bottom line.

Current Compliance Processes

In the event of an audit that involves a third-party, your company should be able to pass over all necessary information without concern for its accuracy, organization, or completeness. ERP delivers value to companies in highly regulated industries by organizing all necessary documentation in one digital storage system, and helping to track the company’s processes to support compliance across all areas of the business.

State of the Current Workforce

Companies in all sectors are facing challenges like aging workforce that’s struggling to adapt to today’s technology  or incoming workforce that’s missing industry expertise and key job skills. ERP delivers value to the workforce by storing all information related to the industry regulations, company policies and production processes in one accessible and user-friendly system; helping to bridge the generational skills gap and train the next generation of staff.


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