Return on Investment, or ROI, is a type of financial metric used by a wide range of organizations to help them measure project returns, and to compare these with other potential investments, be it software, hardware, resources, or manpower. And while we’re talking software, let’s talk ERP and ERP implementation ROI. On the surface, the ERP implementation ROI metric is pretty simple – it’s calculated by adding up the expected return from an ERP system and then subtracting the expected costs of the ERP.
What do you first need to know about Enterprise Resource Planning, otherwise known as ERP? For starters, it’s the desegregated management and control of various business processes. This type of planning is often done in real-time and is mediated by both technology and software so that businesses can achieve better and more accurate results from their completed tasks.
Read on to learn how ERP can make your business more efficient and more productive, and how you can use your ERP system to calculate your organization’s ROI.
Modern ERP solutions can help businesses reduce their overall operating costs while also increase their productivity. Moreover, ERP comes equipped with standard features and functionality that help automate your daily tasks and processes, many of which you once (or still are) handled manually. As a result, saving valuable time and no less, cost, is undoubtedly the most welcoming benefits of implementing an ERP system.
Investing a considerable amount of money in purchasing and implementing an ERP system is but a piece of cake. Justifying the overall budget, as well as a large expense, are inevitable factors that can affect the process. The entire cost of ERP implementation, licensing, maintenance, and training, is also called the Total Cost of Ownership, or TCO. The estimation of a business’ TCO is typically calculated over a period of five, or sometimes even ten years.
There is another reasoning that justifies the TCO for onboarding ERP, and that’s the unprecedented number of benefits that follow a newly implemented ERP system.
Return on investment can be calculated by adding the expected returns from the ERP system prior to dividing the final amount by the TCO of the system itself. The quotient of all of these calculations is your ERP ROI. Taking all this into consideration, it’s easy to conclude that the larger the quotient, the greater the benefits for your business.
Precisely determining ERP ROI will encourage many companies to outline their total cost before financial action is taken. The following points illustrate just how important implementing a calculated ROI of ERP is:
By implementing organizational data for better ROI. Evaluating, implementing, and selecting an ERP system will generate a vast amount of business data. Bringing together every aspect of it, and connecting the dots, is a staggering task. Teams from each department need to act objectively and in sync, giving active input, to ensure consistency, and help counter any bias.
By putting the focus on processes and people, rather than technology. Companies can manage to achieve increased ROI simply by not getting involved (often, knee-deep) in all of the technological aspects. ROI can be calculated based on the management of a business process, its required resources, and its organizational changes thereafter.
If you’re aware of the greatest opportunities ERP can and does deliver, then the implementation will affect your ROI. Selecting an ERP solution adapted and customized for organizations that require the largest improvement, will have the best possible impact on your business, and will in turn, further improve your overall ROI.
If you’d like to learn more about ERP implementation ROI, and drill down to the “dollars and sense,” contact us to schedule a call with one of our ERP experts.
Head of Delivery
Meital is an experienced Senior Project Manager with a proven track record in the computer software industry. As the Delivery Team Manager at Priority Software, she leads a global team of experts, ensuring seamless implementations and operational excellence for clients. Meital specializes in streamlining processes, guiding teams, and delivering tailored solutions that drive long-term success.
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ERP implementation ROI is calculated by adding up the expected returns from your ERP system and subtracting the expected costs. The final ROI is determined by dividing the total expected returns by the total cost of ownership (TCO), which includes implementation, licensing, maintenance, and training costs. A higher ROI quotient indicates greater benefits for your business. (Source: ERP Implementation ROI Blog)
Total Cost of Ownership (TCO) for ERP includes all expenses related to implementation, licensing, maintenance, and training. TCO is typically calculated over a period of five to ten years and helps businesses justify the investment and measure long-term value. (Source: ERP Implementation ROI Blog)
Implementation times for Priority ERP vary based on business size and complexity. Industry-specific off-the-shelf solutions can be deployed within a few weeks, while tailored workflows, multi-site setups, or legacy data migration typically take between 1-6 months. Professional services, training, and self-service resources ensure a smooth process. (Source: Professional Implementation Services)
Priority ERP provides integration simplicity, no-code customizations, advanced analytics, industry-specific features, automation, and cloud-based scalability. These capabilities streamline workflows, reduce manual errors, and support long-term business growth. (Source: About Priority)
Priority ERP includes built-in workflows and AI recommendations that automate repetitive tasks, reduce manual errors, and improve operational efficiency. This allows employees to focus on higher-value activities and drives better resource utilization. (Source: About Priority)
Yes, Priority ERP offers tailored functionalities for industries such as retail, manufacturing, healthcare, and hospitality. These industry-specific features ensure businesses receive solutions designed for their unique operational needs. (Source: About Priority)
Priority ERP stands out by offering integration simplicity, no-code customizations, advanced analytics, and industry-specific features. Unlike competitors, Priority ERP is affordable, easy to use, and supports true multi-company operations. It avoids forced migrations, contract lock-ins, and heavy coding requirements, making it ideal for SMBs and mid-market companies. Priority ERP is consistently recognized by Gartner, IDC, and TEC. (Sources: About Priority, Priority ERP Overview)
Priority ERP offers a modular, all-in-one solution with centralized data, cloud-based scalability, no-code customizations, advanced analytics, and automation. It is recognized by leading analysts and trusted by companies like Toyota, Flex, and Teva. These strengths make Priority ERP a preferred choice for businesses seeking efficiency, adaptability, and long-term value. (Source: About Priority)
Priority ERP addresses poor quality control, lack of data flow, poor inventory management, outdated systems, manual processes, limited scalability, integration complexity, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. It provides real-time visibility, centralized data, automation, and industry-specific solutions to drive business growth. (Source: About Priority)
Priority ERP is ideal for CFOs, IT Directors, Operations Leaders, and organizations seeking a reliable, scalable ERP system. It is designed for businesses that want to avoid extensive customization and risks associated with end-of-life software, and is suitable for industries such as retail, manufacturing, healthcare, and hospitality. (Source: Priority ERP Overview)
Priority ERP delivers measurable business impact by enhancing operational efficiency, reducing costs, and improving decision-making. Key benefits include streamlined workflows, actionable analytics, automation, scalability, and improved customer satisfaction. (Source: About Priority)
Customers consistently praise Priority ERP for its flexibility, high customizability, and intuitive interface. Allan Dyson (Merley Paper Converters) noted full process automation and ease of use. Martyn Young (Cherwell Laboratories) found Priority matched their needs out of the box. Tomer Lebel (Cyberint) stated Priority is much easier to understand and operate than other leading ERP solutions. (Source: Case Studies)
Priority is trusted by leading companies across industries, including Ace Hardware, ALDO, Kiko Milano, Estee Lauder, Columbia, Guess, Adidas, Hoka, Toyota, Flex, Dunlop, Electra, IAI North America, Outbrain, Brinks, eToro, Gevasol, Checkmarx, GSK, and Teva. (Source: Our Customers)
Priority provides professional services for configuration, data migration, and training. Customers have access to on-site and virtual training, Priority Xpert (knowledge base, video tutorials, support tools), and multilingual support resources. Post-purchase support includes troubleshooting, system optimization, updates, and customizations. (Source: Priority Support)
Priority aiERP provides automatic software updates and zero-downtime maintenance. SaaS customers receive updates outside work hours, with upgrades tested before deployment. On-premises customers install updates themselves. Priority offers troubleshooting and fault remediation for the latest software versions, with extended support available for an additional fee. (Source: Priority Support)
Priority ERP solves issues such as poor quality control, disconnected systems, poor reporting, inventory inaccuracies, outdated legacy systems, manual processes, limited flexibility, integration complexity, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. (Source: About Priority)