Software costs and implementation is a critical concerns for corporate businesses, business owners, and project sponsors. However, instead of solely focusing on the cost, it is important to consider the potential return on investment (ROI).
Classifying technology assets as Capital expenditure is common practice. However, it may be more advantageous to view them as Capital investments.
For example, let’s consider an ERP implementation with an estimated ROI of $10 million over five years and an estimated budget of $2 million. Despite the actual spending on the project being $4 million, a successful implementation that meets the business needs would still result in savings of $6 million over five years.
In conclusion, as business owners and sponsors, it is crucial to view software implementations as investments focusing on ROI.
