The Problem with Traditional Justifications
When discussing return on investment in ERP projects, most justifications rely on optimistic assumptions that rarely materialise. This article proposes a more rigorous approach based on real data and proven methodologies.
The Three Most Common Mistakes
- Overestimating tangible benefits: Savings are assumed without validating against actual operational data.
- Ignoring hidden costs: Training, consulting, maintenance, and lost productivity during the transition.
- Failing to account for risk: A sound ROI must include sensitivity analysis and Monte Carlo simulation.
Towards a More Scientific ROI
The key lies in building a business case with objective data, using industry benchmarks and methodologies such as NPV, IRR and discounted payback with weighted scenarios.
A well-constructed ROI not only justifies the investment — it aligns the entire organisation around the project's measurable benefits.
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Ángel Carlos del Pozo Muela
Executive MBA · Digital Transformation · Enterprise Information Systems SpecialistComputer Engineer specialised in Enterprise Information Systems.
Disclaimer
The opinions expressed in this article are personal and do not necessarily represent the position of any organisation with which the author is affiliated.