ERP systems and software benefits are often thought of as an enterprise-class centralization system that brings your business resources, information and functions of a business together. But, there are additional benefits to ERP, including the savings that it can bring.
Certain benefits are immediately visible, a cut down on redundancy, business intelligence through centralization, and the like. These hard-dollar savings are what generally comes to mind when thinking of ERP savings, as they are tangible and quantifiable savings that can be taken into account when figuring out the ROI of your ERP system.
There is however another side to ERP savings, soft-dollar savings. Soft-dollar savings are intangible benefits of ERP systems that cannot be as easily measured through quantifiable means but still hold value for your business. Soft-dollar savings help contribute to overall ROI from your system and should be included in any proposals or measurements on the effectiveness of employing your ERP solution. Soft-dollar benefits and savings traditionally include things like: higher employee morale, decreased employee turnover, enhanced collaboration and communication of employees, assurance of regulatory compliance, enhanced information flow, and improved customer support and satisfaction.
Leveraging an ERP solution in your departmental budgeting will ensure that you can properly compare cost savings with revenue gains—helping your departmental budgeting be bang-on. This is especially helpful for IT department budgets, to help them decrease the amount of overlap of programs that leads to increased licensing and maintenance costs, freeing up resources for more creative technology. ERP will also help them cut down on inefficiencies, giving them time to work on the value-add business intelligence IT projects.
Also by identifying the least-productive areas of your business you can properly allocate staff to areas that need it the most, ensuring you have the highest productivity.
By uniting multiple departments of your business you can ensure that there is no duplication of work being done, thereby decreasing your waste of employee time. The increased communication between departments ensures greater collaboration; collaboration however cannot be quantified even though most upper-management types agree it is critical.
Another difficult to quantify benefit of ERP is the increased flow of information. When leveraging an ERP solution you increase the fluidity of information, in both retrieval and input. Having business-wide information available at your fingertips is an undeniable benefit, but proving the ROI from it is near impossible.
The organizational benefits of ERP helps ensure that customer orders are processed and delivered on-time or early for quicker delivery times. When combined with a CRM solution added benefits include better tracking, ensured high-quality service, and more. Quicker orders and better service lead to higher levels of customer retention and more referrals.
Enterprise resource planning (ERP) software delivers the ability to manage and standardize business processes across your entire organization. The increased efficiency from this can generate an impressive ROI. But there are hundreds of ERP vendors to choose between. more
The hidden costs associated with implementing an ERP system can add up quickly. Businesses frequently find that these projects go over budget despite being well planned. You can avoid this problem by preparing for these overlooked expenses ahead of time. This allows you to develop a more accurate budget and even reduce some of the costs. more
Although the SaaS model is becoming increasingly prevalent for all types of business software, many organizations have been reluctant to switch to SaaS for ERP (Enterprise Resource Planning) application modules. The thinking goes that ERP functions are too important to be left to the cloud. more
Among all of the business software applications necessary for business operations, ERP is undoubtedly one of the most important. Making the wrong selection can have a disastrous impact on your accounting, manufacturing, and supply chain. With so much at stake, it is crucial to make a well-informed decision. more
Selecting an ERP system is no easy task. You have to select and configure a system that fits your exact business needs. Getting it right means a myriad of benefits, from increased productivity to reduced costs. Getting it wrong can be a quagmire. Our new comparison guide gives you the data you need to make an informed decision, all in one easy-to-use Excel file. more