How To Calculate The ROI Of Your ERP Implementation
ERP systems are often multimillion-dollar investments, expected to drive efficiency, insight, and growth. But according to Shiv Kaushik, chairman and CEO of ICCG, many organizations struggle to define or measure ROI effectively—mostly because they ask the wrong questions too late. In his recent Forbes article, Kaushik urges companies to treat ROI as a strategic, evolving process—not a one-time calculation. Here are his seven key takeaways, summarized:
- Start with the business problem. Align ERP goals with the real pain points it’s meant to solve—not just technical requirements.
- Consider total cost. Look beyond software to include implementation, training, support, and lost productivity.
- Track the right metrics. Use KPIs like cycle time and accuracy to demonstrate real value.
- Measure productivity gains. ERP should reduce manual work and free teams for higher-value tasks.
- Factor in intangibles. Benefits like agility, speed, and governance matter—even if hard to quantify.
- Segment ROI. Break down value by business unit, timeframe, or strategic goal.
- Revisit regularly. ROI isn’t static—review it over time to guide future investments.
ERP success isn’t just about reducing costs—it’s about enabling smarter decisions, faster growth, and long-term adaptability. As Kaushik puts it, the real ROI conversation doesn’t start at go-live—it begins well before, and it should never really end.
