TEC ROI Calculator ERP

Considering an ERP system? Get a free ROI REPORT

Smart managers understand that knowing ROI is a key to success in many situations. ROI is a factor in making strategy and other major decisions, buying and selling complex products and services, and participating in projects both as a project manager and as a key stakeholder or contributor.

Risk, Reward, and Payback

The simplest measure of ROI is the payback period, or the length of time it takes for the cumulative return to equal the cumulative investment cost. Ordinarily, investment spending must occur before the investment starts producing benefits. The longer an investment's payback period, the riskier and less attractive the investment is. Similarly, the larger the initial investment, the riskier and less attractive it is; and not surprisingly, larger investments usually take longer to payback. These days, organizations want very short payback periods—they want their return yesterday.

System Business Drivers and Benefits

  • Automate accounting processes.
  • Allow multiple users to work with financial data.
  • Implement well-defined procedures to decrease accounting errors.
  • Refine forecasting methodologies for improved production efficiency.
  • Determine costs based on output levels to improve pricing.
  • Improve order, inventory, and asset management.

Accounting System Risks

  • Selecting an inadequate accounting system may hamper your ability to detect internal fraud or theft.
  • Make sure your software selection enables compliance with the appropriate tax practices and regulations.
  • If the accounting product you choose is not a good fit for your company's processes, you may be unable to fully understand the cost components involved in production.

Why Use the ROI Calculator

  • Quantify the business expectations concerning your project.
  • Develop a structured approach to measuring direct and indirect returns.
  • Assess the impact of a project on your company’s bottom line.
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Nucleus Research Logo The Nucleus Research–TEC ROI Calculator is based on data gathered from the 2013 Nucleus Research Benchmark Study of 362 decision makers in the United States and Europe. Survey respondents were from a variety of industries in organizations ranging from small and medium-sized businesses to Fortune 100 companies.
 
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