How do you calculate ERP ROI?

Add up the yearly savings and gains the ERP brings, such as lower stock, fewer errors, faster collections and saved staff hours, then compare them with the total cost of licences, implementation, infrastructure and AMC.

How to Measure the ROI of SAP Business One

Return on investment from SAP Business One comes from a few places that you can measure before and after go-live. Here is a simple method you can use with your own numbers.

Step 1: List the total cost

Add up licences, implementation, infrastructure and the first few years of AMC. With AIT, all-in packages start at Rs. 9.99 Lakhs, and AMC is 18% of licence cost per year. See what SAP Business One costs.

Step 2: Measure where money is leaking today

Area	What to measure today	How SAP Business One helps
Inventory	Average stock value, dead and expired stock	Live stock, reorder planning, expiry alerts
Collections	Average days to collect from customers	Ageing reports, credit limits, reminders
Month-end	Days taken to close the books	One set of books updated by every department
Errors	Wrong dispatches, billing errors, stock mismatches	One source of data, approvals, batch and serial tracking
Staff time	Hours spent re-entering data and preparing MIS	Automatic postings and ready reports
Purchasing	Emergency purchases and price differences	MRP, purchase approvals, vendor price history

Step 3: Estimate a realistic improvement

Be conservative. For example, if stock worth Rs. 2 Crore is held on average and better planning reduces it by 10%, that frees Rs. 20 Lakhs of working capital. Use your own figures for each row in the table.

Step 4: Compare yearly gains with cost

Add the yearly gains and compare them with the total cost. Many businesses also value things that are harder to price: owners seeing live numbers, smoother audits and the ability to open new branches without adding staff.

Get help with your numbers

In a free demo, AIT can walk through this calculation with your figures.