Determining the Return on Investment of Acumatica – Cloud ERP Software: Measures of Success Part 1
Posted on: July 29, 2015 | By: Jim Bertler | Acumatica
How do we measure Return on Investment (ROI)? In its simplest terms, it is the way we decide which business investments to make, and decide which ones were worth making. ROI compares our expected monetary benefit of an investment compared to how much the investment cost us. We can also attempt to measure its “payback period” or, how long it will take to actually recover the costs of an investment and actually begin to benefit. As one may assume, the shorter the payback period, the better.
We usually think of ROI in terms of investments like property, plant and equipment – as well as assets that are intangible like software. It is often hard to measure what we gain from investing in ERP systems like Acumatica. This is because these kinds of investments are hard to tie to cash flows, as it isn’t very often that sales or revenue is related directly to your software investment, but it will likely improve work capacity in ways you could have never imagined, which gives you a lot more time to focus your energy at more critical business decisions and closing deals- which does help you bring in more money overall.
It’s tough to try and pinpoint the quantifiable benefits of an Acumatica implementation, so we decided to compile a few of the reasons why Acumatica makes a lot sense. Here are 3 ways that you can determine how worth it your investment way.
1.Inventory Management is Upgraded
Acumatica helps you track and account for every movement your inventory makes, but the inventory planning capabilities help the most with inventory management. Having inventory in the right place at the right time is the most important factor in determining if Acumatica is working for you. Out of stock events are another way to notice if your software is keeping up and handling your orders.
You can also have too much inventory on hand that is costing you more to store it which isn’t ideal. Keep your inventory in the ideal place for you by using Acumatica to keep track of everything.
2. Enhanced Customer Service
Customer service is now nearly the forefront of every business’s plan. If your business focused solely on providing a great product but was lacking in the customer service department, it is likely that you probably aren’t doing quite so well. Businesses have to compete to have excellent customer service, and some businesses are really setting a standard that others will have to keep up with if they hope to do well. If not, it is likely that your customers will take their business elsewhere. It is extremely important to be able to track line item fill rates, order fill rates, on-time deliveries and invoice accuracy. If your ERP system isn’t up to par, it is likely that are missing out on these key factors that reflect customer service.
3. Make Better Use of IT Resources
A lot of times we see companies wanting to update their ERP software to Acumatica because they want to change the delivery model or boost capabilities in the internal IT system. Many companies hope to open up time available to them that is currently being used up by outdated ERP systems. No matter the reason, this is just another indirect way we can see increasing ROI.
If by deploying Acumatica you need to change application deployment from on-premise to cloud, then you should take into account reductions and additions in IT infrastructure should be included in the picture. Shifts in IT delivery models can really bring your IT costs down.
We hope that maybe this made your decision to change your outdated ERP system to Acumatica a little easier. If you still have questions or concerns, let us know, we at Logan Consulting, your Chicago based Acumatica partner are here to help make your decision easier.