THE ROI OF CLOUD ERP IMPLEMENTATION

Transcription

1 THE ROI OF CLOUD ERP IMPLEMENTATION

2 Execut ive Summary RO I i s th e key ben ch m ar k i n d eci d i n g w h i ch i n vestm en ts gi ve th e gr eatest r et u r n. I n oth er w or d s, RO I i s a com p ar i son of th e ex p ected ben ef i t of a p ar ti cu l ar i n vestm en t m easu r ed i n m on etar y u n i ts, com p ar ed to th e cost of th at i n vestm en t i n th e sam e m on etar y u n i ts. Ru n n i n g y ou r bu si n ess at op ti m u m p er f or m an ce can be d i f f i cu l t i f y ou r on ly Yes, ROI can be calculat ed on an ERP soft ware m an agem en t tool s ar e ju st sp r ead sh eet s, basi c accou n ti n g sof tw ar e or p ap er r ecor d s. W i t h ou t a p r op er ERP sol u ti on, bu si n esses ar e str u ggl i n g to get a gr eater RO I. T h er e ar e tw o m ai n op ti on s f or ERP; on - p r em i se an d SaaS, or cl ou d - based. T h er e i s a gr eat d i f f er en ce betw een cl ou d an d on - p r em i se sol u ti on s. M ost i m p or tan tly, th e RO I ben ef i ts of cl ou d - based ERP ar e gr eater th an on e m i gh t th i n k.

3 The Difference Between On-Premise and Cloud-Based ERP Solutions The f irst st ep w it h an on- premise syst em is t he up- f ront invest ment. There?s a cost t o inst alling and set t ing up your new ERP. The ERP sof t w are provider needs t o send out IT expert s t hat inst all t he hardw are and sof t w are you had t o purchase, in case you don't have your ow n t eam already. It is more expensive f or small t o medium sized businesses. Like an iceberg, t here are a lot more cost s t o maint aining an ERP syst em t han you might init ially see. There?s not a lot of det ailed cust omizat ion. If you do decide you need some cat egories t ailored t o your business, you'll have t o get someone t o rew rit e t hose cust omizat ions. You have t o have an IT manager t hat is capable of const ant ly maint aining t he ERP syst em, w hich can be highly t ime consuming. Not t o ment ion, all of t hese are necessary, on- going cost s f or an on- premise ERP syst em. - Direct Cost s: 11% - Indirect Cost s: 89% VS. Cloud- based ERP solut ions require no hardw are or sof t w are t hat needs t o be inst alled. It?s all w it hin t he brow ser, so you just need a login t o ent er f rom anyw here! Depending on t he ERP provider, t here shouldn?t be any up- f ront cost s eit her. Cloud- based ERP syst ems are changing t he w ay ERP is done. - Direct Cost s: 95% - Indirect Cost s: 5% Clou d Win s

4 The ROI Benefits of Cloud-Based ERP Are Greater Than You Might Think The reduct ion of cost s f or IT can be quit e large. One t echnology company sw it ched t o a cloud- based ERP sof t w are and saved more t han $100,000 in hardw are and sof t w are purchase and avoided hiring at least t hree f ull t ime employees f or it s IT depart ment. Anot her company w as able t o reduce it s f inancial cost s by 50%. AB I LI TY TO ACCESS D ATA FRO M AN YW H ERE SAVE $ M O N EY RO I ACH I EVED B Y U SI N G CLO U D ERP Your employees are able t o access, implement, and updat e dat a on t he go. A t echnology company w as able t o save $100K in purchases by sw it ching t o cloud- based ERP sof t w are. A recent st udy by Nucleus Research calculat ed t hat most companies report ed a higher t han 150% ROI af t er sw it ching t o a cloud- based ERP syst em.

5 There's A Noticeable Increase In Productivity This is done by reducing manual dat a ent ry or t he need t o combine dat a manually in spreadsheet s. By being able t o send updat es on cust omer inf ormat ion and more over t heir mobile devices, employees are able t o get much more w ork done t han t hey w ere bef ore cloud- based ERP. Here are some examples: 1. SALES & MARKETING If you have a sales call and want to update the customer database, you don?t have to write a note and remember to do it when you get back to the office; that is very inefficient. You can just make the direct changes right then and there using your smart phone, adding notes within the ERP for everyone to see. 2. PAPER TO CLOUD Moving from paper, spreadsheets, and basic accounting packages to cloud ERP solutions helps companies speed up collections, reduce the quote to cash time, and increase the accuracy of their billing. Monthly or yearly financial close has been simplified as well, due to financial consolidation and the ability to more easily access and manage financial data. 3. INVENTORY PLANNING Decreasing inventory levels through better inventory planning reduces costs. Inventory management systems improve the tracking of movements. This is not the only important factor. Invoice accuracy can reduce collection cycles, which in turn improves cash flow.

6 The St at ist ics of ROI for Cloud-Based ERP Solut ions A recent st udy calculat ed t he ROI achieved t hrough t he use of cloud ERP, and not iced most companies report ed a higher t han 150% ROI. Even t hough cloud ERP only represent s 2 t o 7 percent of t he t ot al ERP market at present, t he revenues it generat es have doubled by 2015 compared t o One cloud ERP sof t w are user said,?there is information about the customer and what they ordered. They can see history without tracking people down and see a complete picture of sales, ordering, and fulfillment. That has made us 20 to 30 percent more profitable.? - Nucleus Research The payback of t he cloud ERP solut ions analyzed in one st udy, ranged f rom 2 mont hs t o 1.9 years w it h average annual benef it s f rom $72,790 t o $715,603.

7 About My Office Apps For more than 25 years,my Office Apps (MOA)co-founders saw the challenges companies have, purchasing and implementing Inventory management and ERP software solutions. One of the co-founders served as the Chief Information Officer of a leading publicly-based technology company with both domestic and international locations. They experienced firsthand the need for efficient and cost effective inventory management software. Today, the MOA vision is to create unique cloud-based Software as a Service and move forward to a full ERP solution. With the advent of today?s cloud and subscription economy there is no need for a company to invest in expensive hardware, software or to incur significant upfront costs. MOA software solutions adapt to the customer?s business requirements regardless of size, or industry. Int erest ed? W ant t o learn more? Please visit w w w.myof f iceapps.com f or addit ional resources including more w hit e papers, case st udies and videos. Or you can cont act My Of f ice Apps direct ly at inf o@myof f iceapps.com or at (714) Sources: ht t ps://nucleusresearch.com/ W hat Some Of Our Users Say... MyOfficeApps.com (714) sales@myofficeapps.com