You're considering new ERP modules for your company. How do you convince executives of their ROI value?
To secure executive buy-in for new ERP modules, illustrate their value clearly. Consider these strategies:
How have you approached conversations about ROI with your executives?
You're considering new ERP modules for your company. How do you convince executives of their ROI value?
To secure executive buy-in for new ERP modules, illustrate their value clearly. Consider these strategies:
How have you approached conversations about ROI with your executives?
-
First explaining to the business that an ERP system is a line of business applications that is a must to have and not nice to have. Having looked at the organisational processes that need to be automated, you also go further and speak to the efficiencies that will be gained by the introduction of each module. An example:- Finance: The Finance module would, for example, give the organisation a single view of the entity finances and move away from an Excel spreadsheet that can be easily manipulated. You need to add tangible figures that speak to the savings that the module would bring as well
-
To convince executives of ERP modules' ROI, start by focusing on how the modules solve specific business problems. Show real-world examples of similar companies seeing improved efficiency, cost savings or revenue growth. Highlight time-saving benefits - faster processes mean more productivity. Break down the cost vs. long-term gains, emphasizing how the modules will pay for themselves over time. Lastly, make it relatable - show how these modules improve daily operations for teams, leading to happier employees and better customer satisfaction.
-
You need a solid Cost Benefit Analysis which is driven from a new Target Operating Model and Journeys (Customer, Vendor etc) and the overall Scope and Requirements for the Programme of Transformation. You cannot short change this process step - it is critical because it leads to Return on Investment (ROI) outputs - and you can't build a Delivery Plan, Budget, etc etc without that. This gives you a forecast of Benefit - which you will track as a metric of delivering the Programme. This is a really SKILLED process that I find sits well with Senior BA's in Programme Teams.
-
When discussing ROI with executives, I focus on quantifiable benefits. I start by aligning the ERP module's impact with business goals, such as cost savings, process automation, and improved decision-making. I use real-world data or case studies from similar companies to highlight success stories. Additionally, I present detailed financial projections showing the long-term value, ensuring executives understand both the immediate and future returns. This approach fosters confidence in the investment's potential.
-
For any ERP consultant or program manager "ERP value addition" or "scope enhancement" is the best approach to maintain long term sustainable relationships with organization & its executives promoting efficiency, productivity & continuous improvement culture. A simplified way of convincing & building trust for the new solutions is to project the long term value addition of ERP modules in terms of monetary value, capabilities build, increased process efficiencies, market relevance or competition, futuristic sustainability. On top of it, how company expansions can be streamlined through early adaptations, this build trust , openness , transparency & respect for proactive consulting on new age practices
-
In discussions with executives about ERP modules, I focus on aligning the modules with business goals. I emphasize how the modules will improve operational efficiency, reduce manual errors, and drive cost savings. Using data projections, I show how the investment will pay off by quantifying potential ROI through time savings and increased productivity. Additionally, sharing case studies of similar companies that have successfully implemented the modules helps build confidence in the decision.
Rate this article
More relevant reading
-
ERP ImplementationsHow do you handle the resistance and feedback from your ERP users and customers?
-
ERP ImplementationsHow do you manage ERP scope creep and budget overruns during implementation?
-
ERP ImplementationsHow do you develop and implement a post-implementation support plan and budget?
-
Enterprise Resource Planning (ERP)How do you support and give feedback to ERP users?