Leading SMBs Set the Bar High for Achieving ROI From ERP

74% of Top Performers Expect a Return on ERP Investments Within 2 Years


BOSTON, MA--(Marketwire - April 8, 2009) - In the newly released report, "Measuring the ROI of ERP in SMB: Keeping Projects Alive Just When You Need Them the Most," Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), found that 74% of top performing SMBs (companies with annual revenues of $250 million or less) have 33% more aggressive plans for achieving the return on their investment in ERP. Yet as SMBs brace themselves in this down economy, ERP projects run the risk of being delayed just when they are needed the most. Please visit this site to obtain a complimentary copy of the report: http://www.aberdeen.com/link/sponsor.asp?cid=5793.

ERP is more than a necessary infrastructure that forms the transactional system of record upon which a business is based; it is the potential source of cost savings and operational improvements. It is also a serious undertaking. By using ROI estimates to cost justify projects and rigorously measuring the results, leading companies produce twice the reduction in inventory levels as industry average and 10 times that of Laggards. With average inventory reductions of 20%, operating and administrative cost savings of 19% and 22%, the majority of leading companies expect ERP to pay for itself within 2 years.

"A well-managed ERP implementation can be a continuing source of cost savings and operational improvements which help companies survive and thrive in these troubled economic times," said Cindy Jutras, Vice President and Research Fellow, Aberdeen. "The goals of standardizing and accelerating business processes and providing improved visibility are essential to improving business execution, which in turn supports organizational goals of revenue and profit growth. While the total cost of ERP ownership is important to monitor, focusing on TCO is no longer sufficient. Focus must now expand to include the return on investment of ERP projects in order to justify continued investment and maximum benefits. With the downturn in the economy, a knee jerk reaction may be to stop any discretionary spending on ERP projects just when their cost-saving, operation improving potential is needed the most. Given the current economic uncertainty, it is now more critical than ever to keep these ERP projects alive."

A complimentary copy of this report is made available due in part by the following underwriters: Plex Online and SAP

For additional access to complimentary ERP and Finance Research, please visit http://research.aberdeen.com/index.php/-erp-and-finance.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

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Contact Information: Media Contact: Cindy Jutras Aberdeen Harte-Hanks (617) 854-5247 Cindy.jutras@aberdeen.com