ERP ROI Calculation Worksheet
Need help calculating the ROI for an ERP upgrade? This worksheet will help you compare the costs and benefits of a new ERP system vs your legacy ERP. Télécharger le documentS A P I N S I G H T S
ERP ROI Calculation
Worksheet
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ERP ROI Calculation
Worksheet
1 / 6
S A P I N S I G H T S
ERP ROI Calculation WorksheetCompare the costs and benefits of a new ERP system
versus your legacy ERP. Learn about best practices for
calculating ERP ROI, take advantage of expert tips based
on dozens of implementations, and follow specific
instructions for every step of the ROI calculation process.
Once you’ve reviewed the best practices, fill in your
numbers on this worksheet and calculate your ROI result.
1. Calculate the ERP costs
Identify the ERP deployment options you will compare.
Learn more about ERP deployment options.
On-Prem Hosted True Cloud Hybrid
Legacy System
New System
There are three major steps to
calculating the ROI of an ERP upgrade:
3 Calculate the ROI
2 Estimate the ERP benefits
1 Calculate the ERP costs
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ERP ROI Calculation WorksheetCompare the costs and benefits of a new ERP system
versus your legacy ERP. Learn about best practices for
calculating ERP ROI, take advantage of expert tips based
on dozens of implementations, and follow specific
instructions for every step of the ROI calculation process.
Once you’ve reviewed the best practices, fill in your
numbers on this worksheet and calculate your ROI result.
1. Calculate the ERP costs
Identify the ERP deployment options you will compare.
Learn more about ERP deployment options.
On-Prem Hosted True Cloud Hybrid
Legacy System
New System
There are three major steps to
calculating the ROI of an ERP upgrade:
3 Calculate the ROI
2 Estimate the ERP benefits
1 Calculate the ERP costs
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S A P I N S I G H T S
ERP ROI Calculation WorksheetCalculate the ERP cost of both systems
This section of the worksheet is designed to calculate
the total cost of ownership (TCO) for both the
existing ERP legacy system and the new replacement
system. There are typically four areas of investment:
infrastructure, software, implementation, and ongoing
personnel costs.
1. Capture your ERP infrastructure costs – over time
Legacy System New System 5-Year
Difference
Infrastructure Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Infrastructure – Initial Hardware
Infrastructure – Ongoing Upgrades
and Maintenance
System Software
System Software –
Upgrades and Maintenance
Networking –Equipment and Fees
User Devices
Infrastructure Facilities Fees
Subtotal Infrastructure
Total 5-Year Difference (Legacy System – New System):
2. Identify your ERP software costs
Legacy System New System 5-Year
Difference
Software Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Perpetual License Fee – Initial Cost
Perpetual License Fee – Ongoing
Annual Fee
Annual Subscription (SaaS)
Annual Maintenance Fees (SaaS)
Subtotal Software
Total 5-Year Difference (Legacy System – New System):
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ERP ROI Calculation WorksheetCalculate the ERP cost of both systems
This section of the worksheet is designed to calculate
the total cost of ownership (TCO) for both the
existing ERP legacy system and the new replacement
system. There are typically four areas of investment:
infrastructure, software, implementation, and ongoing
personnel costs.
1. Capture your ERP infrastructure costs – over time
Legacy System New System 5-Year
Difference
Infrastructure Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Infrastructure – Initial Hardware
Infrastructure – Ongoing Upgrades
and Maintenance
System Software
System Software –
Upgrades and Maintenance
Networking –Equipment and Fees
User Devices
Infrastructure Facilities Fees
Subtotal Infrastructure
Total 5-Year Difference (Legacy System – New System):
2. Identify your ERP software costs
Legacy System New System 5-Year
Difference
Software Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Perpetual License Fee – Initial Cost
Perpetual License Fee – Ongoing
Annual Fee
Annual Subscription (SaaS)
Annual Maintenance Fees (SaaS)
Subtotal Software
Total 5-Year Difference (Legacy System – New System):
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S A P I N S I G H T S
ERP ROI Calculation Worksheet3. List your ERP implementation costs
Legacy System New System 5-Year
Difference
Implementation Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Staff Project Team
Consultants Fees
Data Conversion, Input, and Testing
User Training and Education
Subtotal Implementation
Total 5-Year Difference (Legacy System – New System):
4. Determine your ongoing ERP personnel costs
Legacy System New System 5-Year
Difference
Ongoing Personnel Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Infrastructure Support Costs
Backup and Disaster Recover
Network and Devices Support
Periodic Bug Fixes
Software Integration
Software Modifications
User’s Mobile Device Support
Subtotal Ongoing Personnel
Total 5-Year Difference (Legacy System – New System):
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ERP ROI Calculation Worksheet3. List your ERP implementation costs
Legacy System New System 5-Year
Difference
Implementation Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Staff Project Team
Consultants Fees
Data Conversion, Input, and Testing
User Training and Education
Subtotal Implementation
Total 5-Year Difference (Legacy System – New System):
4. Determine your ongoing ERP personnel costs
Legacy System New System 5-Year
Difference
Ongoing Personnel Costs Year 1 Years
2-5
5-Year
Total Year 1 Years
2-5
5-Year
Total
Infrastructure Support Costs
Backup and Disaster Recover
Network and Devices Support
Periodic Bug Fixes
Software Integration
Software Modifications
User’s Mobile Device Support
Subtotal Ongoing Personnel
Total 5-Year Difference (Legacy System – New System):
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S A P I N S I G H T S
ERP ROI Calculation Worksheet2. Estimate the ERP benefits
Identify the direct and indirect benefits for each department.
Copy and paste this table into your worksheet for each department in your organization.
Department:
Process to be improved Direct Annual
Benefit
Indirect Annual
Benefit 5-Year Total Strategic Benefit
Totals
Determine the total cost of legacy ERP vs new ERP system
From the four cost tables on the previous pages, transfer the total for each area of investment, as well as the subtotals
of the new system costs, to the table below. You will now be able to see the total savings or additional costs of going
to a new system. Expect a mix of negative and positive subtotals for the “5-year difference.”
From the four tables on pages 3 and 4 Total 5-Year Difference New System’s 5-Year Costs
Infrastructure Costs Total
Software Costs Total
Implementation Costs Total
Ongoing Personnel Costs Total
Totals
Department Total 5-Year Benefit
1.
2.
3.
4.
5.
6.
Total Project ERP Benefits
Summarize the ERP benefits
Once all the areas of improvement have
been considered, add the sum of the
five-year totals from each department to
determine the total benefit.
The total investment – use in
your ROI calculation
The total benefit– use in
your ROI calculation
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ERP ROI Calculation Worksheet2. Estimate the ERP benefits
Identify the direct and indirect benefits for each department.
Copy and paste this table into your worksheet for each department in your organization.
Department:
Process to be improved Direct Annual
Benefit
Indirect Annual
Benefit 5-Year Total Strategic Benefit
Totals
Determine the total cost of legacy ERP vs new ERP system
From the four cost tables on the previous pages, transfer the total for each area of investment, as well as the subtotals
of the new system costs, to the table below. You will now be able to see the total savings or additional costs of going
to a new system. Expect a mix of negative and positive subtotals for the “5-year difference.”
From the four tables on pages 3 and 4 Total 5-Year Difference New System’s 5-Year Costs
Infrastructure Costs Total
Software Costs Total
Implementation Costs Total
Ongoing Personnel Costs Total
Totals
Department Total 5-Year Benefit
1.
2.
3.
4.
5.
6.
Total Project ERP Benefits
Summarize the ERP benefits
Once all the areas of improvement have
been considered, add the sum of the
five-year totals from each department to
determine the total benefit.
The total investment – use in
your ROI calculation
The total benefit– use in
your ROI calculation
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