How to reduce ERP implementation Costs

July 27, 2013

how to reduce your erp implementation cost

ERP software is considered as most comprehensive and complete solutions for Small to Big organizations, since Enterprise resource planning software covers every aspect and workflow of your business and helps you with more efficiency and effectiveness in working. ERP development requires lot of pre planning before going to the actual implementation stage. Therefore one of the biggest factors involved is the investment and cost to complete the project.

There are ERP projects which double it cost with the changes in scope and may sometimes lead to failure also. Therefore proper management of your ERP investment is a must step before even considering ERP software for your business. Business owners should also understand that ERP implemented successfully can bring long term fruitful growth to an organization. But cost saving is an important factor while choosing the vendor, product, and reducing the total cost of ownership.

In this article we will shed some light on how organizations can really reduce the cost of ERP implementation. We will not go into details of every point so if you need explanation you can just comment and we will ensure to provide the answer.

• Check your budget before considering ERP software
• Do your homework on Timelines, Resource Allocations, Requirements and altogether a powerful planning that can help you in unwanted cost later.
• Vanilla flavor is still tasty – Minimize the customizations and try to cover your implementations in default features. Customizations sometimes inculcate more than 60% of the total cost of the project therefore be careful.
• Involve Lower level employees – They are the best to provide you with what actually needed, Rather impressing your boss.
•  Calculate the Return on Investment (ROI) properly.
• Check the Vendor capabilities, Experiences in similar industry to reduce the timelines.
• Don’t invest on high costing ERP consultants unless needed in your company.
• Play properly over Onsite and off shore development cost, Onsite is only recommended if implementation phase is critical or on a final testing or Pilot stages of the project.
• In case of license software, go for only required licensing as needed.
• Check for Open Source technologies since they are the cost effective solutions available in the market and accepted by millions.

If you feel we miss any tips – Your comments are always approved with your contribution.

The above points and tips are just few steps that can reduce your cost or I would say control your overall total cost of ownership while increasing the ROI. We at GlobalTeckz offers you with one of the most cost effective and Open source ERP solution that reduce your cost from licensing and can be customized as per your requirement. Please fill our contact form and we will get back to you or email us on info@globalteckz.com