ERP Project Justification: Return on Investment (ROI) • White Paper

ERP Project Justification ROI White Paper

Learn how to do an ROI analysis of your ERP investment.

ROI analysis is the process of identifying the expected direct and indirect costs of the project compared to the benefits, both over some reasonable lifetime – typically 5 to 10 years for an ERP system.

Most companies will complete a capital expense justification (return on investment or ROI analysis) before committing to an ERP system.

Download the “ERP Project Justification: Return on Investment (ROI)” White Paper

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While there is no 'generic' ROI analysis, your solution provider or consultant can help you with cost estimates and suggest benefits and returns as experienced by other customers.

It is important to complete the ROI calculation for a reasonable lifecycle for the system – at least 5 to 7 years – and include all identifiable ongoing costs as well as one-time purchase and implementation costs.

This white paper contains the 6 costs, benefits, and opportunities you need to consider when calculating ROI, including:

  • 5 Purchase and Implementation Costs
  • 4 Ongoing Costs
  • 4 Potential Benefits
  • 4 Areas of Cost Savings and Avoidance
  • 2 Potential Opportunities to Increase Revenue
  • 3 Indirect Benefits (that you don’t want to forget)

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