In order to determine which investments to make, business leaders use the method of Return on Investment (ROI). To use ROI is to compare the anticipated benefit of a specific investment, measured in monetary value, as compared to how much that investment cost in monetary units. ROI calculations are made for investments such as equipment or additions to property, as well as software. It can be more difficult to quantify the benefits that come from software investments, such as cloud ERP software. While the returns may not all show up in monetary units, the benefits are there in other forms. Here are some of the many ways to calculate your ROI for cloud ERP software:
Reduced IT Costs with Cloud ERP Software
It has been reported by companies using cloud ERP software that they have reduced their costs on software, hardware, IT personnel and maintenance. With cloud ERP software, companies can replace outdated software that was once expensive to purchase, cost a lot to maintain, and required time consuming manual data entry. Cloud ERP allows for one single data repository, as opposed to having separate hardware and software at multiple locations, making it accessible to all employees over the Internet.
More Accurate Billing, Accounting and Faster Quote to Cash
When a company moves to cloud ERP software and is no longer relying on paper, software packages and spreadsheets, their collections are accelerated and the quote to cash time is reduced. The accuracy of billing is increased and their monthly or yearly financial close is also simplified. This happens because there is the ability to more easily manage and access financial data along with financial consolidation.
Increase in User Productivity
When employees no longer have to manually enter data, consolidate information on spreadsheets or depend on an in-house IT department to handle a problem with the system, productivity automatically increases. It becomes easier for workers in one department to access information needed from a different department, as it is all online and not stuffed in filing cabinets. The data gets processed quicker, and the employee can move on to the next task or focus on more activities that add to the value of the company.
Increase in Customer Satisfaction
Companies are now focusing on the customer service experience more than ever and making it a key strategy in business. With cloud ERP software, employees can instantly access information about the customer’s order history with the company, their financial status and payments. Overall resolution times with customer service representatives can be reduced by up to 60 percent, which makes the customer happy and willing to continue their business with the company.
Contact us if you have any questions about calculating your Return on Investment for cloud ERP software, or any other questions about the cloud for business.