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E-Commerce Plus ERP: Why Integration Is Key

E-Commerce Plus ERP: Why Integration Is Key
March 19, 2012 8:36AM


Enhancing Revenue via Integrated eCommerce to SAP Business One ERP -- Return on Investment (ROI)

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We all know that we need to be motivated to make a purchase. Many times seeing the numbers helps us to understand the profitable value of the solution.

Return on Investment (ROI) is used by companies to understand the business value of investments and today it is one of the main drivers behind spending money on technology. ROI is a family of financial measurements known as Net Present Value (NPV), Internal Rate of Return (IRR) and Payback and are all as important as each other. NPV, IRR and Payback are the primary measures that define the business value of any investment and therefore are key within the financial decision-making process.

The ROI family represents Value (NPV), Rate (IRR) and Time (Payback). Value; how much money one will make on the investment. Rate; the yearly percentage returned on the funds used on the investment. Time; when one will get their initial investment back.

Joint agreement is necessary between the supplier and customer on the costs and benefits in order to provide a trusted ROI. ROI is about quantifying and substantiating ongoing costs and benefits from a project.

A down-turn in economy spurred a renewed interest in value -- and as the strategic mission of IT shifted from saving money on back-office functions to enhancing revenue -- "return on investment" has taken on new meanings and importance.

ROI was about the bottom-line impact of projects and now we have moved to a phase called 'value creation' ROI. "Operational" projects -- such as upgrading a network, replacing PCs or even moving to the cloud -- are usually all about cost savings and are subject to fairly straightforward, tried-and-true evaluation metrics. While operational IT projects aim to save money, strategic ones like integrating eCommerce, try to make money.

Even as companies cut back on expenses there remains the imperative need to increase sales and marketing. Electronic commerce has afforded many benefits to both companies and their customers. This ability to buy and sell products and services over the internet has broadened the options of conducting business. Providing information to customers and handling transactions swiftly has made this form of internet business compelling for both the company marketing their products as well as for their clients.

If you've already implemented an eCommerce solution, you already know many of the following benefits that your WebStore offers:

  • Your business is open 24x7, 365 days a year. Customers can log on to your site anytime, anywhere, to get more information on a particular product or service, and then place an order, quickly and securely.
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