ERP ROI An Important Consideration for SMBs
Small and midsize businesses may not treat an ERP implementation with as much thought as a larger corporation. Smaller businesses may feel the cost of implementation in a smaller company is not as troublesome or as expensive compared to a larger company. However, this way of thought is very flawed.
ERP implementations are long and costly procedures that make it difficult, even for smaller businesses. On average, SMB implementations can take 10 months, but installation continues to go on even when the solution is implemented. Financial costs are large for SMBs, although they can pale in comparison to larger companies. However, ERP Software can be a significant cost, potentially costing SMBs as much as $300,000 per year. With lower revenues than larger companies, this can be a significant chunk of a SMB’s budget.
With this much budget dedicated to an ERP solution, it is definitely a wise decision to consider the cost/benefits of an ERP solution. Figuring out the anticipated ROI can be crucial in determining whether or not to pursue a specific ERP solution. Although ERP Software may be viewed as a necessity for small companies, the numbers may not justify the investment and could potentially save the company from making a big mistake.
It is important to take all the precautions when making such a significant business decision. However, it may not be wise to also completely cut out an ERP solution from the budget. Take the time to consider the many options and the many outcomes from an ERP solution. Considering all information is the best route a company can tkae when deciding upon ERP Software.
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