ERP Evaluation

ERP evaluation refers to the systematic procedures followed to estimate the performance of ERP in a company. This is not a one step process and it should be a part of the organizational study and as well as be done from time to time.

The first thing in ERP evaluation is ROI. ERP is a very costly investment and it becomes very important to check if the returns are satisfactory or justified for the costs involved. ERP evaluation is dependent on several factors. As a matter of fact implementation of ERP will eat up a large chunk of the organizations profits in many cases. The reason is that ERP calls for change management and before the employees tune in to the new atmosphere the company might have to lose several regular businesses. This will certainly prove to be useful if only ERP satisfies the requirements of the company and is able to compensate on this loss.

Similarly lot of money is spent on implementing ERP and training the workforce to use it. Apart from all this it has to be studies if ERP has facilitated smooth transaction of business than ever. This is one of the most important parameter in assessment which decides if ERP should be a part of the organization or if it should be given a go by.

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