The Hidden ROI in Every ERP Release

Why Organizations Miss Out on Release Value

Several factors prevent organizations from capturing the full value of ERP updates:

Update fatigue. When releases arrive quarterly or even monthly, teams struggle to keep pace with what's new and relevant to their operations.

Lack of evaluation process. Without a systematic approach to reviewing release notes, organizations cannot identify which features address their specific pain points.

Implementation uncertainty. Even when teams identify valuable features, they often lack clarity on how to implement them effectively within existing workflows.

Resource constraints. IT and finance teams juggle competing priorities, making it difficult to allocate time for evaluating and testing new functionality.

These challenges are common, but they're also solvable with the right approach.

Building a Release Evaluation Framework

Organizations that successfully extract value from ERP updates follow a structured evaluation process. This framework transforms release management from reactive to strategic.

Establish a Release Review Team

Designate specific stakeholders responsible for reviewing updates. This team should include representatives from key user groups: finance, operations, IT, and any departments heavily dependent on the ERP system. Each member brings domain expertise that helps identify relevant enhancements.

The team's responsibilities include reviewing release notes, prioritizing features for evaluation, coordinating testing, and communicating changes to end users.

Create a Feature Assessment Matrix

Not all features deliver equal value. A structured assessment approach helps teams focus on high-impact opportunities.

Evaluate each feature against these criteria:

• Time savings potential: Does this feature reduce manual data entry, automate repetitive tasks, or streamline existing processes?
• Error reduction: Will this enhancement improve data accuracy, add validation rules, or eliminate common mistakes?
• Reporting improvements: Does it provide new insights, better visualization, or more efficient access to critical data?
• Compliance support: Does it help meet regulatory requirements or improve audit readiness?
• User experience: Will it make daily tasks easier, reduce training needs, or improve system adoption?

Score each feature on impact (high, medium, low) and implementation effort (simple, moderate, complex). Prioritize high-impact, simple-to-implement features first.

Document Current Pain Points

Maintain an ongoing list of process inefficiencies, user complaints, and workarounds. When reviewing release notes, cross-reference new features against this list. Updates that directly address documented pain points deserve immediate attention.

This practice also provides valuable feedback to ERP vendors, as organizations can request specific enhancements based on real operational needs.

Identifying High-Impact Features

Certain types of ERP enhancements consistently deliver measurable value across organizations.

Automation Enhancements

Features that automate manual processes generate immediate time savings. Look for updates to workflow automation, batch processing capabilities, scheduled reporting, and integration improvements.

For example, enhanced approval routing that automatically escalates overdue approvals can eliminate bottlenecks that delay month-end close. The time saved compounds across every reporting period.

Data Validation and Controls

Updates that strengthen data validation reduce costly errors. New field validation rules, duplicate detection improvements, and enhanced audit trails prevent problems before they require correction.

Organizations often underestimate the cost of data errors: the time spent identifying mistakes, researching root causes, making corrections, and dealing with downstream impacts. Features that prevent these errors deliver ROI that's easy to overlook but significant to capture.

Reporting and Analytics Upgrades

Improved reporting capabilities often provide the highest visibility ROI. Enhanced dashboards, new report templates, better data visualization, and improved export functionality make information more accessible and actionable.

When evaluating reporting enhancements, consider both the time saved creating reports and the value of insights that become available with better analytics.

User Interface Improvements

Usability enhancements reduce training time and improve productivity. Navigation improvements, better search functionality, customizable views, and mobile access upgrades may seem minor individually but compound across all users and daily interactions.

Calculate the aggregate impact: if a navigation improvement saves each user two minutes per day, multiply that by the number of users and working days per year. Small efficiencies scale quickly.

Testing and Validation Before Full Deployment

Once high-priority features are identified, structured testing prevents implementation problems.

Sandbox Environment Testing

Test new features in a non-production environment first. This allows teams to understand functionality, identify potential conflicts with customizations, and develop implementation procedures without risking operational disruption.

Document test scenarios that mirror actual business processes. Include edge cases and unusual transactions to verify the feature handles real-world complexity.

Pilot User Groups

Before organization-wide rollout, implement new features with a small group of users. Select pilot participants who represent different skill levels and use cases.

Gather feedback on usability, identify training needs, and refine implementation procedures based on pilot results. This staged approach reduces risk and improves adoption success.

Measuring Actual ROI

Quantifying the value delivered by new features validates the release evaluation process and builds support for continued investment in feature adoption.

Time Savings Metrics

For automation and efficiency features, measure time before and after implementation. Track specific tasks affected by the enhancement:

• Minutes saved per transaction
• Reduction in process completion time
• Decreased time spent on rework or corrections

Multiply time savings by labor costs to calculate financial impact.

Error Reduction Tracking

For data validation and control features, monitor error rates before and after implementation. Track:

• Number of data entry errors requiring correction
• Transaction rejections or exceptions
• Audit findings related to data accuracy

Include the cost of error correction in ROI calculations, as this represents avoided waste.

User Adoption Indicators

Monitor feature usage through system analytics. Low adoption rates may indicate training gaps or usability issues that need addressing. High adoption suggests the feature delivers value users recognize.

Survey users periodically to gather qualitative feedback on which enhancements improve their daily work most significantly.

Creating a Repeatable Process

The true value of release management comes from establishing sustainable practices that deliver consistent results with each update cycle.

Standardize Release Review Timing

Schedule release review meetings in advance, aligned with the vendor's update cycle. This ensures the review team can prepare adequately and stakeholders can participate consistently.

Allow sufficient time between feature identification and planned deployment for proper testing and training development.

Maintain Implementation Documentation

Document how each adopted feature was implemented, including configuration changes, process modifications, and training materials created. This knowledge base accelerates future implementations and supports troubleshooting.

Include lessons learned from each deployment to continuously improve the implementation process.

Communicate Changes Effectively

Develop a standard communication approach for announcing new features to end users. Include:

• What's changing and why
• How it benefits their daily work
• What actions they need to take
• Where to find help or additional information

Clear communication improves adoption and reduces resistance to change.

Common Pitfalls to Avoid

Even with a structured approach, certain mistakes can undermine release value capture.

Adopting features without clear business justification. Not every new feature deserves implementation. Focus on enhancements that address specific needs or opportunities.

Neglecting training and change management. Technical implementation alone does not guarantee ROI. Users need adequate training and support to leverage new functionality effectively.

Implementing too many changes simultaneously. Change fatigue is real. Prioritize and pace feature rollouts to avoid overwhelming users.

Failing to measure results. Without measurement, organizations cannot distinguish valuable features from those that miss the mark. Tracking results informs future prioritization decisions.

Building Long-Term Value

Organizations that consistently extract value from ERP updates gain compounding benefits over time. Each successfully implemented feature builds on previous improvements, creating increasingly efficient operations.

This approach also strengthens the relationship between IT, finance, and operational teams. Collaborative release evaluation breaks down silos and ensures technology investments align with business priorities.

The most successful organizations view their ERP system as a evolving platform rather than a static tool. Regular feature adoption keeps the system aligned with changing business needs without requiring disruptive major upgrades.

Taking Action

Maximizing ROI from ERP releases requires deliberate effort, but the investment pays consistent dividends. Organizations that implement structured release evaluation processes report significant improvements in operational efficiency, data accuracy, and user satisfaction.

The key is starting with a manageable approach: establish a small review team, create a simple assessment framework, and focus on one or two high-impact features from the next release. Build from these early successes to develop increasingly sophisticated release management practices.

Every ERP update represents an opportunity to improve operations without additional software costs. The question is not whether value exists in each release, but whether organizations will invest the effort to capture it.

Register for the ERP Release Readiness SmartTalks session to learn how to find value in every update. This practical training provides frameworks, templates, and best practices for building an effective release evaluation process tailored to your organization's needs.

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