Epicor ROI Program. Lynda Dahlheimer Senior ROI Consultant. It s not about the effort, it s all about the RESULTS George Klaus, CEO Epicor

Transcription

1 Lynda Dahlheimer Senior ROI Consultant It s not about the effort, it s all about the RESULTS George Klaus, CEO Epicor

2 Research Companies gain the most benefits from their ERP solution if the possible return on investment (ROI) was identified before the start of the ERP project and measured continuously throughout the implementation process. Reasons for Not Considering ROI: 48% ROI is too hard to measure 24% Don t have the necessary tools Source: Aberdeen Group, Measuring the ROI of ERP in SMB, Mar 2009

3 Considerations Before Implementation Will ERP decrease our operating expenses? Will ERP help to increase revenue? Will ERP decrease our inventory investment? Will ERP decrease our administrative costs? Will ERP help us improve customer satisfaction? Will ERP contribute to increasing our market share? Will ERP shorten our order-to-delivery cycle time? Will ERP help us keep pace with or surpass our competitors? Will ERP shorten our time to market? What are the metrics for measuring performance improvement?

4 How Can Epicor Help?

5 Epicor Signature Methodology

6 Prepare Stage ROI and KPI Definition 1) Identify tangible benefits and areas with highest potential gains. ROI Calculator tool 2) Quantify tangible benefits such as reduction in operational costs, reduction in administrative costs, reduction in inventory levels and increased revenue. ROI Calculator tool

7 Deploy Stage ROI and KPI Review 3) Establish performance metrics Key Performance Indicators (KPIs) Project Manager ensures the system is set up to gather the data for the KPIs defined 4) Monitor and track the progress of the ROI goals, during implementation and post go-live which is called our 360 ROI Assessment ROI Analysis Tracker- actual values against planned benefits (ROI goals)

8 360 ROI Assessment 1. ROI results presented to project team 2. Project team and Customer define KPIs 3. Checkpoints throughout the implementation PREPARE ROI & KPI Definition 4. Post go-live evaluation of results MEASURE 1 Year Assessment 360º IMPLEMENT KPI Checkpoints Learning about the potential benefits upfront and how to achieve them will empower the entire team to focus on areas where we have identified the greatest potential gains. DEPLOY ROI & KPI Review

9 The Epicor ROI Calculator

10 Epicor ROI Calculator Focuses on over 40 potential areas of tangible benefits associated with ERP AMR, Gartner, Aberdeen and Forrester 20,000 Epicor customers Focus on your issues, pain points and goals, not on our features and benefits Use your data and your estimates of the potential benefits

11 General Assumptions Enter the current values for KPIs and common metrics (Used to convert the benefits to financial values) These values are used throughout the calculations but only entered once Throughout the model, values are entered in the white cells

12 Suite & Module Selection Select ERP suites & modules Financial Management Supply Chain Mgmt Production Management Planning and Scheduling Product Data Mgmt Service Management Human Capital Mgmt Sales Management Customer Relationship Management

13 Potential Benefits Using your estimate of the potential benefits, we ll determine the potential tangible benefits of the Epicor solution Reduced operational costs Reduced administration costs Reduced inventory Increased revenues Improved GM % Establish baseline goals

14 Benefits Worksheets Specific worksheets have been included for specific processes Estimating Purchasing Production A spare sheet has been provided for custom use Calculated values flow back to benefits sheet

15 Benefits Summary Benefits summary shows summary in order of calculated value Can use this to exclude specific benefits from the ROI calculation Also shows formula

16 Total Cost of Ownership Use the TCO form to enter the total estimated costs: Software Hardware Consulting Maintenance Training Internal implementation costs Internal systems admin costs

17 ROI Summary Includes financial metrics Net Return Cumulative Net Return Breakeven Chart Return On Investment Net Present Value (NPV) Internal Rate of Return (IRR) Impact of 1 month delay All calculations are shown both on a 3 and 5-year basis

18 ROI Summary Includes Headcount Analysis Hours saved identified in the benefits, summarized by Epicor Suite Result in headcount redeployment and/or headcount reduction

19 ROI and Best in Class Performance Compares metrics in model with Aberdeen study Helps identify how ambitious the ROI savings are Aim to plot arrow within the green (> average)

20 ROI Analysis Tracker

21 Prepare Stage ROI and KPI Definition 1) Identify tangible benefits and areas with highest potential gains. 2) Quantify tangible benefits such as reduction in operational costs, reduction in administrative costs, reduction in inventory levels and increased revenue. Deploy Stage ROI and KPI Review 3) Establish performance metrics Key Performance Indicators (KPIs) 4) Monitor and track the progress toward the ROI goals, during implementation and post go-live.

22 Companies gain the most benefits from their ERP solution if the possible return on investment (ROI) was identified before the start of the ERP project and measured continuously throughout the implementation process. Results: Easier-decision making process Focused implementation project Cost justification for initial and ongoing investment MEASURE 1 Year Assessment PREPARE ROI & KPI Definition 360º IMPLEMENT KPI Checkpoints DEPLOY ROI & KPI Review

23 Next Steps 1. Fill out ROI Worksheet 2. Populate ROI Calculator to identify and quantify tangible benefits 3. Review ROI results, Calculator Session 4. Deliver ROI Reports

24 Thank you. Questions? Lynda Dahlheimer Senior ROI Consultant It s not about the effort, it s all about the RESULTS George Klaus, CEO Epicor