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2 min read

Justifying Your ERP Decision and Avoiding Pitfalls

ERP decision

 

The ERP decision and implementation process often feels convoluted, and for businesses without the right plan or implementation partner—it often is. Too often, a rushed decision gets made without all of the facts, resulting in cost over-runs, hidden fees, or unforeseen expenses that could derail your project.

At Clients First Business Solutions, we understand the challenges that go into an ERP decision and implementation process and have helped hundreds of companies just like yours to minimize risk, avoid cost over-runs, and successfully implement software during our decades of experience.

Our goal in this series is to provide you with tempered, accurate, and honest advice about the buying process, and today we would like to turn our attention to something that is rarely as straightforward as it seems: cost.

The cost—and resulting return on investment—of ERP software is a significant factor in the decision to upgrade or replace your current solution, but rarely do you get a straightforward answer from vendors or implementation partners. Today, we would like to share with you two resources that will help you not only understand the costs of a product, but justify the decision to your board as well.

ERP Project Justification - ROI

While you may know that it’s time to upgrade and you’ve gotten your team on board, often the hardest sell is the one you need to make to the final decision makers. Whether that’s the C-Suite or the board, you will need to prove that this new software can not only pay for itself, but provide long-lasting benefits as your company grows.

The Acumatica Guide to Justifying an ERP Purchase can help you weigh your options, calculating not only the costs, but the benefits to your business, as well—including cost savings, cost avoidance, increased revenue, and higher profit.

Here are some other benefits contributing to your return on an ERP investment:

  • Greater coordination of resources to deliver the right products, in the right quantities, at the right time
  • Greater visibility to demand and schedules
  • Better management of workflow and production schedules
  • Closer management of materials, equipment, and personnel

There are indirect benefits, too, which might prove unexpectedly valuable to your business:

  • Increased productivity due to employee job satisfaction
  • Reliable processing and fewer surprises due to stable scheduling
  • Improved marketing and product deployment because of market analysis and information

Download the Enterprise Resource Planning Return on Investment Guide here:

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Avoiding 7 Hidden Costs of ERP Implementation

ERP is expensive. With implementations ranging from a few months to a couple years, affecting nearly every process of your business, and requiring retraining of every end user, it goes without saying that making a change will be expensive. Often, however, the benefits outweigh the costs, and the decision is usually a smart one.

Unfortunately, without a complete picture of these costs, you may be "flying blind," subjected to hidden costs that pop up throughout the implementation process. To help you understand some of the questions you should ask to get a complete picture of the potential costs, we would like to share with you this guide from Acumatica—The Hidden Costs of ERP Implementation.

This guide to hidden ERP costs will help you recognize and avoid unforeseen costs from the following three categories:

  • Time: It takes time to plan, implement, understand, and use new solutions.
  • Training: Existing employees will need to be trained or retrained in system use, development, and documentation.
  • Tailoring: As your business changes, so will the way ERP can help streamline your business processes, and customization can require additional time and retraining.

Download this useful guide on choosing the right ERP below:

View Guide Now

Closing In on the Final ERP Decision

In this five-part series, our goal is to provide you a straightforward, no nonsense guide on the ERP decision and implementation process. We invite you to read previous entries in this series and to stay tuned for our final installment, which will show you how to position your company and team for a successful implementation.

Clients First has been in this business for decades, and we have perfected the art of the ERP implementation. Whether you’re just beginning your journey to a new ERP or in the final stages of making a decision, it’s important to have a partner who has been there and done that. Ready to learn more? Contact us with your questions, or for a free consultation.
Acumatica Partner

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