Findings from end-user evaluation reveal Enterprise Resource Planning can deliver value benefits beyond operational efficiencies.
New, qualitative research from analyst firm IDC has finally dispelled the misperception that enterprise resource planning (ERP) systems only deliver value in the form of operational efficiencies, with respondents to an independent study citing benefits such as better sales team performance, the ability to bid for more business, improved net promoter scores (NPS), winning more deals and keeping customers for longer.
While some enterprise software buyers still struggle with justifying large projects like an ERP selection and implementation, worrying about the risks, costs, and disruption, many have now realised that there are these significant benefits to be had, and by working with a trusted partner they can reduce time-to-value and realise these benefits much sooner than they thought. Indeed, the IDC study found that the average amortisation period for IFS Enterprise Software was just 15 months – less than half the industry average.
IFS recognises that enterprise software and ERP project owners because they have a lot of weight on their shoulders to show the benefits of such enormous projects – and do so quickly. And while most vendors resort to a simplified return on investment (ROI) calculation, IFS is now adopting a radically different approach to demonstrating value. By listening to customers and getting closer to their businesses early in the sales cycles, they are now able to produce a more holistic and detailed business case during the evaluation phase based on the customer’s long-term goals. This can then be used to measure success once the project is complete.
The end-user evaluation also shows that for the average customer IFS Enterprise Solutions deliver net productivity increases of over 18% and adds over $25m in revenue each year. In IFS’ view, this paper sets the standard to which the rest of the enterprise software industry should be held to.