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Go For Maximum Payback Potential

Today organizations need demonstrable return on their investments before they invest in enterprise software. Customers are demanding that ROI analysis be a critical factor in their decisions to acquire new enterprise software. A decision to acquire new enterprise software that relies solely on quantifiable ROI factors would be limited in its ability to predict the ultimate success of the software.

That success would include, particularly in the long-term, payback factors that are harder to quantify and therefore, more often than not left out of the ROI equation. These non-quantifiable or intangible factors should be given as much importance as the quantifiable measures before making the decision to acquire a new ERP system and selecting a vendor/package. While almost all ERP vendors are providing enterprise resource payback to their customers, it is the right combination of technology, architecture, functionality and active customer support that provides maximum payback potential.

By looking at how the ERP systems support payback in customer relations, it becomes obvious that these same payback parameters are involved in driving significant new business opportunities for the organization. The ability to model new processes that in turn manage new products or services can open up these new opportunities. When other features are added customers report that additional opportunities emerge. This is true for the direct e-commerce connections cited above as well.

The link between customer support and service and new business opportunities is one of the cornerstones of enterprise resource payback. The flexibility and speed of the enterprise applications environment allow organizations to maximize their opportunities for both new and existing business.

For example, the customer relationship management (CRM) software, now being offered by almost all ERP vendors as part of their systems, tightly integrates with warranty tracking and field service, thereby allowing companies to expand service offerings to their own customers and expand service revenues as a result. In a similar vein, the integrated functionality available in the collaborative planning and engineering functionality allows manufacturing partners to reduce design and production time and get products to market more quickly and efficiently.