Study: Sage X3 cloud gained more than 170% ROI

A few weeks ago, a math discussion in the office between a rocket scientist (Greg Laffety) and a person who is really, really good at math (me) went something like this:

Greg: Something can be 300 percent better.

Me: I know, but — I don’t know. It doesn’t …

Greg: What? If you earn $10 one week and then earn $40 the next week, you’ve done 300 percent better.

Me: I know, I know — It just … Well, you’re right.

All along, I knew Greg was mathematically correct. When it comes to percentages, things like gains and losses can be more than 100 percent. But something in my mind kept saying, “It just looks so funny.”

But that’s the thing about math: It may look funny, but it’s always true. When you’re talking about language, you can have i before e, except after c, and a half dozen other rules that go along with it. But in math, 2 + 2 will always be 4. Period. End of story.

This is an image of the front page of the study done by Forrester Consulting about Sage X3.

Sage commissioned Forrester Consulting to conduct a study about Sage X3.

So I had to laugh at myself when I saw this news: A Forrester Total Economic Impact Study showed that a composite organization using Sage X3 cloud achieved more than 170 percent Return on Investment.

The January 2016 study, which was commissioned by Sage, was based on interviews with current Sage X3 customers to create a composite organization. It revealed the imagined Sage X3 customer achieved its 177 percent ROI with $1.7 million in cost savings over three years and an expected payback period of five months.

“With companies feeling more pressure to reduce costs and adapt quickly to become more agile and responsive, the long-term return of a typical ERP investment is no longer an option,” said Jean Huy, the vice president of global product marketing for Sage X3. “A modern cloud solution such as Sage X3 delivers faster time to value while also allowing companies to gain agility, simplify IT management and free up resources to focus on more important projects.”

I’ll save more of the facts and figures to those of you who want to read the report. (You can download it from our Manufacturing and Distribution page.) But as I flipped through the report, I found some interesting findings by Foresters when they looked at Sage X3 through the eyes of The Organization (their composite company) and the Sage customers they interviewed*:

  • In the Financial Management Module, The Organization went from not attempting interim reporting during the month to having better cash management insight and practices thanks to Sage X3’s real-time reporting.
  • In the Purchasing Module, The Organization was able to standardize its purchasing process globally, ensuring the best possible prices from suppliers.
  • In the Sales Management Module, The Organization can now review customer activity globally monitor, manage, and reduce discount levels out of one system instead of sales managers mistakenly discounting too much in their local currency.
  • In the Inventory Management Module, The Organization was able to view its entire production inventory for all global sites. (The study gave an example of The Organization’s site in China was out of a product, it was able to see if their site in the United Kingdom and supply on hand.)
  • With its mobile platform, Sage X3 can be used on any web browser or mobile device.
  • If The Organization acquires another company, the acquired company can be moved onto the Sage X3 platform much faster and easier than a traditional ERP system.

* Forrester said they maintained complete editorial control over the study, and over the interviews they did with Sage customers. So these statements are either quantified through the Forrester study methodology or opinions of the Sage customers that Forrester deemed to be valid when it was something wasn’t quantifiable.

It’s always interesting to see an independent review of Sage products. It’s great to know that when we tell our customers and prospects that Sage X3 can deliver a great Return on Investment, we can show proof from an independent source.

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