Return on investment should also be a factor in business software purchases

Lorge Press Office

An investment in accounting and business software should deliver a return in line with investor expectations. On this premise, ACCPAC financial software reseller and solutions provider Lorge has introduced the “Lorge Index” as a means of tracking and measuring the return on investment (ROI) for a company using ACCPAC programs and Lorge`s value-added services and support.

To compile the index, Lorge enrolled the assistance of its client base, who responded to a series of questions that were collated to provide a database against which meaningful ROI comparisons can be made.

“The index maintains the confidentiality of individual company information while providing a benchmark against which clients can evaluate their individual ROI achievements,” says Lorge managing director Errol Wills. “In essence, the index encourages co-operative efforts with clients to improve specific ROI areas that fall short of the index benchmark.”

The “value drivers”, or the biggest windows of opportunity to make savings and increase ROI within the index include: reduction in acquisition costs; increased sales due to improved customer service; interest earned on shorter collection cycles; savings in engineering re-work; increased direct labour productivity; decreased indirect labour costs; savings resulting from better management of critical business processes; and reduction of inventory and carrying costs.

Collated responses revealed an average net annual benefit from total savings against total ACCPAC solution cost of some R300 000, resulting in a ROI of 26% and a total cost payback period of just 10 months.

“This can undoubtedly be improved upon,” says Wills. “The index provides the platform from which plans can be developed between Lorge and individual clients to fully unlock the value inherent in effective implementation and use of ACCPAC accounting and business software modules.”

Lorge now intends segmenting the index into sections that accommodate the type of business and its size to provide more meaningful individual company comparisons against the benchmark.

“We see the index being refined and expanded over time,” adds Wills. “In this way Lorge can ensure that every new module introduced in to the ACCPAC product range is evaluated against the returns that it delivers and not merely the features that it provides.

“Even more important is the fact that it will encourage Lorge to ensure that every service offering we provide is designed to contribute to the ROI for each individual company`s business system.

“The Lorge Index will also help our clients to quantify the probable returns on business system improvement projects and additional business system investments. It will raise awareness on both sides of the relationship, keeping both us and our clients on our toes.”

Issued by: Copywise


Established in 1986, Lorge has become the undisputed leader in ACCPAC accounting software and business solutions in Africa. Lorge`s independence and consistent expertise in the implementation, development, servicing and support of ACCPAC systems as well as the design and application of innovative solutions that provide strategic and competitive advantage, has earned it an enviable reputation in both the public and private sectors.

Editorial contacts

Colleen Bellas
(011) 292 8100

Dave McDermott
(011) 4782055