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ERP Solutions Benefits: Flipping the 80/20 rule for a positive ROI

Posted by Dawn Aldwinckle on January 28th, 2013

ERP solution ROI, increase ROIThe entire point of enterprise resource planning, or ERP software solutions is to provide real value to your business. However, it is not uncommon to find the 80/20 rule at play within ERP deployment – 80% of effort delivers just 20% business value. If we want a positive ERP ROI then we need to devise a methodology for flipping this 80/20 rule on its head.

A focus on planning

As we discovered in our previous blog ERP software project overruns, which cost time and money, are often caused by insufficient planning time and communication at the early stages. More time planning and preparing the ERP project allows a more focused build and will result in clear positive ERP implementation ROI results.

But what aspect of the planning stage will deliver the best ROI?

Some areas of your business will benefit more from tailored ERP software solutions than others. It is possible to investigate each key functional area in turn to uncover their individual business value, and thus the direct ROI, at the planning stages. With this information you can focus your design and build on the key areas and modules to provide the best business value – flipping the 80/20 rule on its head and receiving 80% business benefit for just 20% effort.

Key functional areas

These are many processes in which ERP software solutions can fundamentally change your processes for the better. You will find the processes that impact on the business value to your customers will provide the greatest benefits when supported with an ERP solution. Automation of certain processes will increase efficiency but may not provide any value benefits.

Putting it into practice

Once you have defined your key functional areas and calculated the ROI for each area you are ready to start designing and building your ERP solution. Focus the effort on those key areas with the highest potential ROI – building tailored modules to support each area. Then, for those areas with questionable or negative ROI, use standard modules to save time and effort. Some standardised modules may need a little tweaking to fit your business, but a good ERP provider should be able to make these changes with minimal fuss.

Why choose Lakeview?

At Lakeview we build all our ERP software solutions bespoke as standard to suit different industry needs and requirements. We focus our efforts on tailoring your ERP modules to support your key functional areas – delivering the best value to your business while minimising the costs. Take a look at the positive ROI gained from ERP solutions from

If you’re looking for an ERP solution but are unsure where to start,download our impartial guideto choosing an ERP solution. If you’d like to know more about Lakeview then do not hesitate to get in touch with us today.





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