Cara Information Systems Ltd. http://www.carainformation.com ERP and EMR Software and Software Development Mon, 31 May 2010 22:32:30 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Resources http://www.carainformation.com/?p=391 http://www.carainformation.com/?p=391#comments Mon, 31 May 2010 22:32:30 +0000 mastermynde http://www.carainformation.com/?p=391 Coming Soon.

]]> http://www.carainformation.com/?feed=rss2&p=391 0 Is “My ROI on ERP?” the same as “how long is a piece of string?” http://www.carainformation.com/?p=209 http://www.carainformation.com/?p=209#comments Fri, 18 Dec 2009 17:04:33 +0000 admin http://www.carainformation.com/?p=209 ROI calculations for ERP software tend to be black magic and seem to be used a lot as a sales tool to sell software. Sure, there are a lot of on-line tools or spreadsheets to download to give you a guesstimate of what should be your ROI.  What they don’t take into consideration is that most businesses are unique in the way they are setup and function.  You can’t just say by spending “X” amount of dollars you are going to save $250,000 annually.  Some claim a return of 500%, which may be true under the right conditions.
Things to consider are how lean the business already is.  Some have already installed ERP software and want to upgrade to something different or decrease IT spending.  That’s a whole different topic.  If you change your ERP vendor and find a suitable ERP solution for less should this be considered part of the ROI?  Another way to approach is to say that after your software implementation your efficiencies should increase by to 3%-5%.  From a sales point of view 5% just doesn’t look as sexy as 400%-500%.  When purchasing ERP software everybody should expect some return on their investment keeping in mind realistic goals .  A proper calculation is most likely calculated after the implementation when all the facts are in and you know exactly how long the string is.
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