In this blog post we will shed some lights on a typical ERP Price and implementing ERP cost for any organization that is involved, We will also shed light on how one can reduce ERP price and ERP cost during different stages of Development. ERP implementation are tricky and need powerful experience resource, vendor knowldege and resources who works on different areas. ERP Price & Cost is one of the most important factors that decides the initiation of any ERP project for almost every businesses. ERP Price calculations and proper costs information is important and necessary area before you select any ERP solution for your business.
Enterprise Resource Planning system is considered as one of the most important & powerful system that manages all your business processes and interaction with different department effectively and offers you more profitability and growth. ERP solutions now a days are used by almost every businesses ranging from small to mid sized and of course Big companies. It sounds very generic when you talk about ERP implementation but there are many areas that needs to be taken care of while undertaking any ERP Development. Although the biggest challenges for any ERP development is the ERP Price, cost and the timelines. As ERP price are directly related to the Project timelines. In this article we will discuss the tips on how to reduce your ERP price & Implementation cost.
Read our Article – Advantages of customized ERP software
So what are the different ERP price & costs involved in ERP implementation?
There are various cost involved during ERP implementation which needs to be taken care of before finalizing the project. Although many ERP vendors offer you with one stop solution that includes variety of services involved before and after Implementation
Some of the high level areas where ERP implementation costs differs based on the services performed by the vendors
- ERP price for Business Requirement Analysis and Documentation
The initial cost comes when you have poor process and the processes are not on paper – as before implementing any ERP solution Business requirement Analysis and Documentation needs to be done to ensure the development and implementation is on proper track. BRD documentation cost can be high or low based on the number of days Functional and Technical ERP analyst are analyzing your business processes.
- ERP Price for Software Development
Once the BRD is done and software is selected another cost which comes is the Software Development price which you need to pay to the vendor for installation, implementation, configurations and so on
- Licensing Pricing
If you are using license based ERP or Enterprise Editions then you need to pay for the licensing price for the ERP software. This may vary based on the number of users license you will need in your organization.
- Onsite services offered by the vendor
In case you are using Vendor resource at your office or plant then onsite cost needs to be paid based on the pricing schedule by vendor.
- Customization costs
Customization in ERP software enhances the timelines and therefore enhance the ERP price – Customization is performed when any features or functions not available in the software you selected.
- ERP Price for Training
Training price is another area where the cost may incurr – Although Training price is almost included in the whole project plan as it is part of ERP implementation.
- Support and AMC
Annual maintenance, bug fixing and support cost is another area which is normally charged at a percentage level for whole project. Based on the services offered by the vendor the cost and pricing of an ERP solution differs.
How to reduce your ERP Price & Implementation cost ?
ERP Price & implementation cost is the major factor that motivates any business to start with ERP project – Sometimes high cost also create failure in ERP projects as the projects are stopped or kept on hold due to no further investment – Let’s discuss on the ways your organization can reduce ERP Price & Implementation costs.
- Plan properly:
Any ERP system needs a proper planning onto the modules, customization, workflows, and most importantly the employees who are the actual user of your ERP system. ERP planning helps in reducing the cost which you may incur in customization and other related services
- Choose your System Wisely:
Selecting proper ERP software is another important factor. Choose your ERP system wisely check in and out functionality which is provided by the ERP software – There are many ERP software available for specific industry that reduces the cost of ERP implementation drastically.
- Reduce Customization or Special Requests
Customization is one of the key factors that enhance the price of ERP implementation. Reducing the customization can help in low cost and quick delivery of the projects. We suggest initiating with vanilla out of the box ERP implementation for less important processes of your business
- Check your Vendor Capabilities:
Vendor experience is another factor that can enhance your ERP software cost – Select your vendor wisely who already have experience with similar kind of implementation – This ensure less time consumption and reduce the failures as well as ERP price is reduced to certain extent.
- Use Agile Development Methodology over Waterfall Method
If your ERP implementation is big then Agile Development Methodology can reduce or divide your whole ERP investment. Agile Development Method divide your whole implementation in variety of phases further you can also have hold on your payments to the vendor as it is paid in small installments.
We hope the above methods can help your business to reduce the ERP Price & implementation cost – You can also consider using Open source ERP software rather going to Proprietary software as these Open Source software are license free and reduce the cost of overall implementation drastically
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This blog post was originally shared on our External blog – http://blogs.globalteckz.com
Read more articles on ERP software
- Why Big Companies prefer using Open Source ERP software – Infographics
- Advantages and Benefits of ERP system
- Best ERP software for your Business
- OpenERP 8 – Odoo first successful Implementation 🙂
- 5 Common Myths about Open Source Software