One of the most common ERP myths is long payback cycles \u2013 making them an expensive short-term investment.<\/p>\n
However, data from leading ERP provider SYSPRO and research firm Frost & Sullivan proves this is untrue.<\/p>\n
Short repayment period<\/strong><\/h3>\nSYSPRO and Frost & Sullivan conducted research that is presented in the whitepaper \u201cERP Myths & Truths \u2013 Dispelling Misconceptions About Enterprise Resource Planning Systems.\u201d<\/p>\n
This whitepaper details how 16 common ERP myths are false \u2013 including the perception that ERP solutions have a long payback period.<\/p>\n
This myth is crushed in the whitepaper, with the data showing that an ERP investment takes just 16 months on average to fully pay itself off. In certain cases, this process can be even shorter.<\/p>\n
What\u2019s more, SYSPRO and Frost & Sullivan found the cost of owning an ERP system is approximately 3-5% of a company\u2019s annual revenue.<\/p>\n
This is a sizable investment, making it even more impressive that the repayment period for an ERP system is approximately 16 months.<\/p>\n
Impressive return on investment<\/strong><\/h3>\nThe report also highlights the need to set realistic Return on Investment (ROI) targets for the ERP investment before the system is adopted.<\/p>\n
This ensures the implementation of the ERP system will align with your organisation\u2019s operational and digital strategies.<\/p>\n
Importantly, research shows that ERPs pass this ROI test with flying colours.<\/p>\n
According to an ERP Report<\/strong><\/a><\/strong> by Panorama, 81% of organisations that performed an ROI analysis before adopting their ERP systems met these expectations after only one year.<\/p>\nIn fact, ERP implementation made a positive impact on almost all KPIs in this period, as shown in the graph below.<\/p>\n
The report also highlights the need to set realistic Return on Investment (ROI) targets for the ERP investment before the system is adopted.<\/p>\n
This ensures the implementation of the ERP system will align with your organisation\u2019s operational and digital strategies.<\/p>\n
Importantly, research shows that ERPs pass this ROI test with flying colours.<\/p>\n
According to an ERP Report<\/strong><\/a><\/strong> by Panorama, 81% of organisations that performed an ROI analysis before adopting their ERP systems met these expectations after only one year.<\/p>\n In fact, ERP implementation made a positive impact on almost all KPIs in this period, as shown in the graph below.<\/p>\n
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