Share what you know with millions of people
Focus is the best place to turn what you know into remarkable content
0
How do you justify the cost of ERP to your organization?
I have a smaller manufacturing company and I think we could benefit from an ERP system, but how do you justify the costs? Do smaller companies generally see a decent ROI on ERP systems?
Events
- Dos and Don'ts of Small Business Marketing May 29 @ 11 am PT
- Lead Nurturing 202: The Next Generation May 31 @ 11 am PT
- The Tricks to Paid Media June 6 @ 11 am PT
- Display Advertising for Brand Awareness June 20 @ 11 am PT
Related Activity
1 Answer
Bill,
The short answer is no. There is no decent ROI on ERP systems. 20+ years ago, when they first came out, the value proposition was consolidated financials and one set of code to support. Unless your small manufacturer doesn't have financials in place (which still doesn't require an ERP), then you might want to consider buying that application. GAAP hasn't changed in many years (ignoring SOX)so unless they are running their financials on an abacus, I'd steer them clear of an ERP.
The internet is awash in articles that demonstrate the value of ERP. Most notably, Panorama Consulting publishes a report that clearly states ROI is MIA. CIO.com has almost weekly articles deriding the value of ERP and wondering aloud what a company is to do.
Answer This Question