ERP ROI calculator

The improvements identified in Step 2 will be the inputs that drive the ERP ROI calculator and the overall magnitude of the return. Such areas to achieve an ROI could come in the form of cost savings activities, such as a reduction in duplicate data entry or reduced inventory levels through the utilization of advanced ERP MRP software tools.

Cost-saving factors alone, however, should not be the only inputs considered in the ERP ROI calculator. Your company may want also to consider factors that can drive increased sales. For example, many companies find that leveraging integrated EDI software allows them to bring on new, larger customers. Our ERP Selection Toolkit helps you identify factors like these that may serve as inputs to the ROI calculation.

The importance of calculating your ERP ROI

It may seem obvious, but understanding your potential return on investment from ERP implementation is critical to obtaining executive sponsorship for the project. The ROI calculation exercise may also demonstrate that the business case has not yet been made to evaluate potential ERP solutions. Without knowledge of the possible ROI, the management team responsible for approving the project budget could view the project simply as another expense. Or, they may be left to use non-quantifiable user opinions to justify the project.

We offer a free ERP ROI calculator that you can download and use. Our Excel-formatted ERP ROI calculator will help you comprehensively estimate your anticipated ROI from an ERP implementation project.