8 Ways to Developing a Business Case For an ERP Implementation

Ultimately, every project comes down to one thing: the potential ROI. There are eight advices for developing a business case to convince executives to invest in new technology:

1. Relate the problem to the bottom line

Maybe there is a hard time accessing real-time data. Regardless of the reasoning, the best way to pitch the strategy is to relate it to the organization’s bottom line.

If they are continually missing deadlines, then calculate the penalties they would have to pay as a result. Sound financial reasoning with recommendation will set off on the right foot.

2. Show multiple opportunities for improvement

One purchase, numerous benefits?  Most enterprise technologies touch multiple areas of an organization. This makes them a valuable investment. To strengthen the value proposition, emphasize each of the ways an ERP system could transform the organization.

3. Demonstrate long-term usability

Executives aren’t just worried about today’s results – they must think about tomorrow’s goals as well. In the long-term, outdated technologies can become hard to use and expensive to maintain. Modern ERP systems, on the other hand, are more user-friendly and seamlessly integrate with technologies the company might adopt in the future. Look for ERP vendors that have a demonstrated history of support, system updates and long-term ROI.

4. Build credibility through case studies and reports

Corporate decision-makers need data to rationalize an investment. Most ERP can provide extensive resources to help build the business case. For example, a success story from another company in same industry can be convincing to executives.

5. Anticipate failure

Executives are held responsible when an ERP implementation fails. As a result, they often err on the side of caution when it comes to expensive technology investments. When approaching the executive team, don’t just present the reasons why the company should adopt the new technology. Think through the potential reasons why the company.

  

6. Set a realistic time frame

Implementing an ERP system doesn’t happen overnight. While executives may want immediate results, it’s better to give them realistic expectations. One should account for production testing, user training and data migration. Map out each milestone and consider building in extra days for unexpected roadblocks.

7. Offer to monitor, report and analyze

Meet with executives to develop specific goals and key performance indicators (KPIs). Offer to provide regular status updates to make the results more visible. This demonstrates that you’re aligned with their priorities.

8. Liaise between executives and end-users

Once executives are on board, you should continue to communicate with them regarding end-user needs. Nobody will have more insight into what’s necessary in an ERP system than the people who currently own your business processes. You can communicate their pain points up the chain of command, ensuring the technology you select meets your business needs.