For many organizations, the implementation of an Enterprise Resource Planning (ERP) system is considered a major milestone—one that promises streamlined operations, better visibility, and data-driven decision-making. But what happens after the ERP is in place? As business needs evolve, gaps in standard ERP functionalities become evident. That’s where Power Apps come into play.
Microsoft Power Apps provide a flexible, low-code platform to extend the functionality of existing ERP systems—without the complexity or expense of full-scale ERP customization. However, for any IT or business leader considering extending ERP capabilities with Power Apps, one pressing question remains: What’s the return on investment (ROI)?
In this article, we’ll explore how organizations can measure the ROI of Power Apps used to enhance ERP systems—evaluating real-world metrics like cost savings, time efficiency, and productivity gains.
Understanding the Role of Power Apps in ERP
Power Apps are part of the Microsoft Power Platform, enabling organizations to build custom business applications that connect to existing data sources like ERP systems. Rather than altering the ERP directly—which can be risky, costly, and inflexible—Power Apps serve as a secure extension layer, allowing organizations to:
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Build custom workflows
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Improve user interfaces
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Enable mobile capabilities
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Integrate third-party services
Whether you’re using SAP, Oracle, NetSuite, or Microsoft Dynamics, Power Apps can bridge the functionality gaps and modernize legacy interfaces—all while staying within budget and timeline constraints.
ROI Dimensions: What Should You Measure?
When evaluating the ROI of extending ERP with Power Apps, it’s crucial to look at three core dimensions:
1. Cost Reduction
ERP customization is expensive. Traditional approaches may involve large development teams, lengthy deployment cycles, and ongoing maintenance fees. In contrast, Power Apps significantly reduce the total cost of development by:
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Enabling low-code or no-code environments
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Shortening time-to-market for internal applications
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Reducing dependency on third-party platforms or vendors
Let’s say your company needs a mobile approval system for purchase orders. A direct ERP customization might cost $100K–$150K and take 6 months. With Power Apps, the same feature could be built and deployed within a few weeks—often for a fraction of the cost.
2. Time-to-Value
One of the key advantages of Power Apps is speed. With prebuilt connectors and drag-and-drop components, Power Apps allow development teams (and even non-technical users) to prototype, test, and deploy solutions quickly.
Faster deployment leads to faster time-to-value—which in turn shortens the ROI curve. A tool that improves order processing or reduces manual data entry can start delivering returns almost immediately.
A leader in custom software development consulting—have cut app development timelines by 40–60% after switching from traditional coding approaches to Power Apps for ERP extension.
3. Productivity Gains
Productivity improvements often provide the most tangible form of ROI. When employees can access ERP data through simplified interfaces, automate manual tasks, or work from mobile devices, operational efficiency improves drastically.
Examples of productivity-focused Power Apps include:
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Field service apps with offline ERP access
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Sales dashboards connected to live inventory
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Invoice processing with approval automation
When combined with Power Automate, these apps create end-to-end solutions that remove bottlenecks and boost user adoption. If you’re not leveraging Power Automate, you’re only tapping into half the potential of the platform. Our Power Automate consulting services often reveal areas where automation can save dozens of hours per week across departments.
Real-World Impact: A Case Study
A regional distribution company using Microsoft Dynamics NAV struggled with slow approval cycles for customer credit requests. The ERP didn’t support mobile workflows, and approvals often took up to 3 business days—delaying shipments and affecting customer satisfaction.
We helped the company design a custom Power App that pulled customer data from the ERP, displayed it in an intuitive dashboard, and allowed mobile approval from managers. It was built, tested, and deployed in under 4 weeks.
ROI Snapshot:
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Cost savings: $75,000+ annually (reduced labor and paperwork)
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Approval time reduced: 3 days to less than 4 hours
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Customer satisfaction rating: Increased by 12%
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Payback period: Less than 3 months
Building a Business Case: What to Include
When pitching Power Apps as an ERP extension strategy to stakeholders, your business case should focus on:
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Operational pain points: Where does your ERP fall short?
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Proposed solution: What will the Power App do?
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Expected outcomes: What metrics will improve?
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Cost vs. benefit: How much will you save or gain?
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Implementation roadmap: Timeline, phases, and resource needs
We often help clients build this internal proposal as part of our custom software development consulting engagements—ensuring technical feasibility and business alignment from the start.
Integration with Existing IT Infrastructure
A critical factor in realizing ROI is how seamlessly Power Apps integrate with your existing IT and ERP infrastructure. Microsoft provides a robust ecosystem—including Azure, Power BI, and Dataverse—that ensures scalability and security.
Power Apps can integrate with:
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Microsoft Dynamics 365
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SAP, Oracle, NetSuite via connectors or APIs
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SharePoint and Excel-based data
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SQL Server and Azure databases
This flexibility allows you to design solutions that are modular, adaptable, and future-proof—without heavy ERP customizations that require ongoing vendor support.
Measuring ROI: Tools and Techniques
Here are some techniques businesses use to measure ROI effectively:
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Baseline Metrics: Define key metrics before implementation (e.g., average order processing time, data entry errors).
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Time Tracking: Use built-in tools or third-party apps to measure time saved post-deployment.
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Feedback Loops: Collect user input to identify satisfaction and usability gains.
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BI Dashboards: Integrate your Power App with Power BI to monitor performance in real time.
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Quarterly Reviews: Assess KPIs like cost savings, productivity, and process efficiency every 3 months.
Final Thoughts
Power Apps are not just a low-code tool—they’re a strategic asset. By extending your ERP system with custom Power Apps, your business gains agility, speed, and scalability without the typical downsides of traditional ERP customization.
When measured against meaningful business outcomes—cost, time, and productivity—Power Apps consistently deliver strong ROI.
Whether you’re looking to automate routine tasks, provide ERP data access on mobile devices, or build intelligent workflows, develop the solution, and measure success—end to end.
Interested in getting started? Our custom software development consulting and Power Automate consulting teams are ready to support your journey.
FAQs: Measuring ROI of ERP Extensions with Power Apps
1. How long does it take to see ROI from a Power App built on ERP data?
Most businesses begin seeing ROI within the first 3 to 6 months, depending on the complexity of the app and its integration with the ERP. Apps that automate existing processes or improve field access to ERP data typically deliver faster returns.
2. Can Power Apps work with non-Microsoft ERP systems like SAP or NetSuite?
Yes. Power Apps can connect with non-Microsoft ERP systems using APIs, Azure services, or custom connectors. specializes in cross-platform integrations as part of our custom software development consulting services.
3. What are the benefits of combining Power Apps with Power Automate?
Combining Power Apps with Power Automate allows for seamless end-to-end automation—turning static data into dynamic workflows. This significantly enhances productivity and ensures real-time communication between users and systems. Learn more through our Power Automate consulting offering.
