According to Toolbox, enterprise software systems, including CTRM software, generally last from five to 12 years. However, the idea of replacing a CTRM system – or any ERP system – every five years is problematic. Choosing a new system takes several months and configuring and implementing it can take a year or longer. If you replace your CTRM software every five years, you begin searching for your new system before you have had a chance to reap the benefits of the old one.
CTRM ROI takes up to four years
Businesses typically see a return on investment for enterprise software between two and four years after implementation. Panorama Consulting Group researched the payback period of major ERP vendors and found that these ERP systems have an average ROI of 2.7 years.
If you choose an on-premises implementation, you have to cover the purchase cost of the software as well as IT expenses and annual maintenance costs. For a SaaS system, you have to cover the annual subscription fee. Both on-premises and SaaS systems will have customization, implementation, and training costs – including the time your team spends learning how to use the new system.
Choosing your new CTRM software takes several months
Choosing a new commodity management system is a multi-step process. Even if you are methodical, and everyone’s schedules align, the process takes a minimum of 16 weeks. In general, the selection process takes at least 24 weeks and often up to a year or longer.
Implementing new software takes months – or years
Implementing a CTRM system takes time, even if you choose a SaaS deployment. On average, ERP solutions take from six months to two years to implement. The exact length of time depends on the amount of customization required, size of the company, complexity of the system, and the ease of integrations. Data migration can also create challenges and take time.
The majority of CTRM implementations take six to 12 months from kick off to a live system in full operation.
If you replace your CTRM system every five years, you will begin research for a new CTRM solution three years after you implement your existing system. Every decade, your team will spend six years researching, implementing, and learning new CTRM systems. That is not the most effective or efficient way to run your business.
Read this white paper to review the complete timeline for replacing a CTRM system every five years.
When you choose your next CTRM system, plan for a more stable future. Choose a CTRM system that can grow with you, so you don’t need to replace it every five years. Choose a solution with a faster implementation, faster ROI, and longer life, so you can enjoy the benefits of your CTRM system without the pressure to constantly plan for the next one.
At iRely, our CTRM solutions is designed to last 10, 20, 30 years or more. We have a clear path for upgrades and enhancements to ensure you always have the most modern, feature-rich solution.
Contact iRely today to learn more.