Building A Cost Benefit Analysis For An ERP Acquisition & Implementation Project
ERP Cost Vs Benefit
Deciding to invest in an ERP system for your business is a decision that usually involves weighing up the cost vs the benefits to your business. But how do you work out the value of the benefits to your business?
There are a number of factors you should consider when weighing up the cost vs benefit of ERP investment, both tangible and non-tangible.
Tangible Benefits of ERP Investment
The tangible benefits of ERP investment include such things as
- Consolidation of point systems into a single system, which may reduce your overall IT costs.
- Improved inventory management – reducing your inventory management costs
- Automating or streamlining manual business processes such as staff onboarding
- Time savings
These sorts of benefits from ERP investment and implementation are usually straight forward to calculate and measure.
Non-Tangible Benefits of ERP Investment
The benefits of ERP investment that you can’t always apply a dollar value to include things like
- Improved efficiency of operations
- Well defined business processes
- Reducing or eliminating human error
- Reducing business risk and risk from fraud
- Reducing manual tasks
- No more games of “Find The Spreadsheet”
- Always viewing and operating from a single source of live data
These sorts of things allow your business to scale and grow without bloat, improve skilled staff retention and set you up for successful future.
How To Build A Cost Benefit Analysis For An ERP Investment.
A cost-benefit analysis (CBA) is a systematic process for calculating and comparing the benefits and costs of a project or decision: The necessary outgoings and desired incomes.
What are the costs you need to consider, and does it go beyond just calculating the MYOB license costs?
This whitepaper gives you a step by step process for building a cost benefit analysis for MYOB Advanced ERP, helping you to put an actual dollar amount or value on the benefits to your business of an ERP system.