epicor roi program · 2021. 2. 19. · • will erp help us improve customer satisfaction? • will...

Epicor ROI ProgramLynda DahlheimerSenior ROI Consultant

“It’s not about the effort, it’s all about the RESULTS”

George Klaus, CEO Epicor

Research

“Companies gain the most benefits from their ERP solution if the possible return on investment (ROI) was identified before the start of the ERP project and measured continuously throughout the implementation process.”

Reasons for Not Considering ROI:

• 48% ROI is too hard to measure

• 24% Don’t have the necessary tools

Epicor ROI Program © 2010 Epicor Software Corporation.

Source: Aberdeen Group, “Measuring the ROI of ERP in

SMB”, Mar 2009

Considerations Before Implementation

• Will ERP decrease our operating expenses?

• Will ERP help to increase revenue?

• Will ERP decrease our inventory investment?

• Will ERP decrease our administrative costs?

• Will ERP help us improve customer satisfaction? • Will ERP help us improve customer satisfaction?

• Will ERP contribute to increasing our market share?

• Will ERP shorten our order-to-delivery cycle time?

• Will ERP help us keep pace with or surpass our competitors?

• Will ERP shorten our time to market?

• What are the metrics for measuring performance improvement?


How Can Epicor Help?How Can Epicor Help?

Epicor Signature Methodology


Prepare Stage

“ROI and KPI Definition”

1) Identify tangible benefits and areas with highest potential gains.

• ROI Calculator tool

2) Quantify tangible benefits such as reduction


2) Quantify tangible benefits such as reduction in operational costs, reduction in administrative costs, reduction in inventory levels and increased revenue.

• ROI Calculator tool

Deploy Stage

“ROI and KPI Review”

3) Establish performance metrics – Key Performance Indicators (KPIs)

• Project Manager ensures the system is set up to gather the data for the KPIs defined


4) Monitor and track the progress of the ROI goals, during implementation and post go-live which is called our 360°ROI Assessment

• ROI Analysis Tracker- actual values against planned benefits (ROI goals)

360°ROI Assessment

360º

PREPAREROI & KPI Definition

IMPLEMENTMEASURE

1. ROI results presented to project team

2. Project team and Customer define KPIs

3. Checkpoints throughout the implementation

4. Post go-live evaluation of results

360º IMPLEMENTKPI

Checkpoints

DEPLOYROI & KPI

Review

MEASURE1 Year

Assessment

Learning about the potential benefits upfront and how to achieve them will empower the entire team to focus on areas where we have identified the greatest potential gains.


The Epicor ROI CalculatorThe Epicor ROI Calculator

Epicor ROI Calculator

• Focuses on over 40 potential areas of tangible benefits associated with ERP

� AMR, Gartner, Aberdeen and Forrester

� 20,000 Epicor customers

• Focus on your issues, pain points and goals, not on our features and benefits

– Use your data and yourestimates of the potential benefits


General Assumptions

• Enter the current values for KPIs and common metrics

(Used to convert the benefits to financial values)

• These values are used throughout the calculations but only entered oncebut only entered once

• Throughout the model, values are entered in the white cells


Suite & Module Selection

• Select ERP suites & modules

� Financial Management� Supply Chain Mgmt� Production Management� Planning and Scheduling� Product Data Mgmt� Service Management� Human Capital Mgmt� Sales Management� Customer Relationship

Management


Potential Benefits

• Using your estimate of the potential benefits, we’ll determine the potential tangible benefits of the Epicor solution

� Reduced operational costs

� Reduced administration � Reduced administration costs

� Reduced inventory

� Increased revenues

� Improved GM %

• Establish baseline goals


Benefits Worksheets

• Specific worksheets have been included for specific processes

� Estimating

� Purchasing

� Production� Production

• A spare sheet has been provided for custom use

• Calculated values flow back to benefits sheet


Benefits Summary

• Benefits summary shows summary in order of calculated value

• Can use this to exclude specific benefits from the ROI calculation

• Also shows formula• Also shows formula


Total Cost of Ownership

Use the TCO form to enter the total estimated costs:

• Software

• Hardware

• Consulting

• Maintenance• Maintenance

• Training

• Internal implementation costs

• Internal systems admin costs


ROI Summary

• Includes financial metrics

� Net Return

� Cumulative Net Return

� Breakeven Chart

� Return On Investment

� Net Present Value (NPV)� Net Present Value (NPV)

� Internal Rate of Return (IRR)

� Impact of 1 month delay

• All calculations are shown both on a 3 and 5-year basis


ROI Summary

• Includes Headcount Analysis

– Hours saved identified in the benefits, summarized by Epicor Suite

– Result in headcount redeployment and/or headcount reductionheadcount reduction


ROI and Best in Class Performance

• Compares metrics in model with Aberdeen study

• Helps identify how ambitious the ROI savings are

• Aim to plot arrow within the green (> average)


ROI Analysis Tracker


Epicor ROI Program

Prepare Stage – “ROI and KPI Definition”

1) Identify tangible benefits and areas with highest potential gains.

2) Quantify tangible benefits such as reduction in operational costs, reduction in administrative costs, reduction in inventory levels and increased revenue.

Deploy Stage – “ROI and KPI Review”3) Establish performance metrics – Key Performance Indicators

(KPIs)

4) Monitor and track the progress toward the ROI goals, during implementation and post go-live.


PREPAREROI & KPI Definition

Epicor ROI Program

Companies gain the most benefits from their ERP solution if the possible return on investment (ROI) was identified before the start of the ERP project and measured continuously throughout the implementation process.

Results:• Easier-decision making process

360º IMPLEMENTKPI

Checkpoints

DEPLOYROI & KPI

Review

MEASURE1 Year

Assessment

• Easier-decision making process• Focused implementation project• Cost justification for initial and

ongoing investment


Next Steps

1. Fill out ROI Worksheet

2. Populate ROI Calculator to identify and quantify tangible benefits

3. Review ROI results, Calculator Session

4. Deliver ROI Reports4. Deliver ROI Reports


Thank you. Questions?

Lynda DahlheimerSenior ROI [email protected]

“It’s not about the effort, it’s all about the RESULTS”

George Klaus, CEO Epicor

epicor roi program · 2021. 2. 19. · • will erp help us improve customer satisfaction? • will...

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