PBrain ERP system can help reduce operating costs by automating manual processes, increasing productivity, and providing standard features that previously had to be purchased separately. The ROI of PBrain ERP attempts to calculate both the savings as well as the increased earning potential

Here are some things to consider that can help you figure out ROI:

Evaluating, selecting, and implementing ERP involves gathering a large amount of business data. Bringing this information together can be an overwhelming task. People from every department should give their input objectively to help counter any bias and ensure consistency.

You can achieve increased ROI by not getting into the technical aspects of an ERP system. You should understand how it will improve your processes and what savings those improvements will provide over time. ROI will depend on how well you manage business process reengineering and organizational change management.

Setting realistic expectations and forecasting ROI benefits is important. Estimate the project’s time, cost, and effort by getting the advice of an expert, someone other than the ERP vendor as they may not be entirely realistic for their benefit.

PBRAIN.ERP costs such as licensing and hardware can be easily determined. Besides these costs, other expenses need to be considered and calculated. They include SaaS subscription, consultancy, maintenance, and user costs.

Below are some questions to consider:

• How do you plan to deploy your solution: Cloud? On-Premise?
• How many users do you need?
• What do you need to run your business?
• What are your implementation and training needs?

You may require a significant amount of time to calculate these costs. Here is the list of costs that can be forecasted before investing:

Many business owners assume that this PBRAIN.ERP cost is easy to calculate as it’s the amount taken from the vendor’s quote. However, that depends on the modules and deployment options your company requires.

On-premise PBRAIN software is hosted on the local servers in your organization. In this situation, a one-time licensing fee is required. With an on-premise deployment, businesses also need to update their servers to ensure the software can function now and into the future, so any expense that entails should be included. Licenses are “repurchased” every five years so that is also a cost to be considered if the plan is to keep the system for longer.

SaaS of Cloud PBRAIN.ERP is hosted remotely on a third-party server and can be accessed via the internet. You have to pay a monthly subscription fee, until the date you no longer use the system. There is no fee for updates to the ERP system.

If you use a consultant to drive the implementation process you will need to factor in their fee. To calculate this expense, it’s important to define the list of activities they will perform and the timeframe they will be needed to establish expectations and avoid future issues and costs.

A range of implementation services offered by ERP consultants includes data migration, project management, system customization, etc. Some consultants ask for surcharges for these services so make sure you have clarity on how their fees work.

Your servers and machines should meet at least the minimum specifications of the vendor. Getting your equipment updated to accommodate the ERP implementation may require costs you need to factor into your ROI calculations.

Maintenance fees need to also be considered including IT labor, additional server expense, and other departmental costs. And the ERP vendor may have an annual maintenance fee that will allow you access to new technologies to help you maintain a competitive edge.

It is crucial to train your employees on the new ERP system to ensure it is efficiently used. Training is a time-consuming process and that cost needs to be calculated. It will depend upon many factors including how many people need to be trained and how challenging it is to learn the processes and whether you need to hire additional resources to help with the training or managers to help streamline new production processes.

It is important to manage costs as per the budget and it should never exceed the amount you have planned or ROI can go down.

Installation of ERP requires time, effort, and money. Once you get it implemented, the software starts gathering raw business data and transforms it into information that is easily understandable and readable.

To calculate ERP return in investment, data should be given a dollar value. It helps in calculating increased levels of efficiency in business processes.

This info graphic lists the tangible and intangible returns to expect from ERP investment:

In addition to this, you must know the answers to these questions:

• How long will I use this ERP system in the future?
• What are my expected monetary benefits after using it?

It is difficult to calculate tangible benefits in monetary terms as these may fluctuate. However, to ensure ROI, it’s a must to quantify all the business parameters.

As you would expect, more standard selections, versus more customized options, impact your ERP cost. Your ability to choose what is best for your business success today, combined with the confidence your solution can scale to support your continued growth….is priceless.

The key to business profitability is to change and enhance business processes and fill the gaps to improve efficiency and overall productivity.

The first step of calculating ERP ROI is, to sum up the total cost of ownership (TCO) of ERP software over a specified period, as we mentioned above.

The second step is to guesstimate the anticipated benefits over a certain period. To put down these benefits into figures, look at benefits that occur from the reduction of operating costs, inventory costs, labor costs, and improved production (as these points directly affect the profit and loss of the company).

Performing ROI analysis for an ERP system is quite intimidating especially when it comes to calculating unquantifiable figures. ROI measurement helps you forecast the future business plan and increase the chances of a successful ERP project completion.

Some of the immeasurable returns you can expect from the ROI of an ERP investment are:

• Improves staff retention
• Effectively fixes errors
• Single source of truth on a centralized platform
• Increased visibility allows for quick decision-making