Containing ERP costs

ERP implementations are expensive affairs. One often sees companies complaining on how the implementation far exceeded the allocated budget. This notion is often strengthened when clients think that ERP implementation cost is simply what is paid to the ERP vendor.  They overlook other avenues where the implementation will cause revenue break (temporarily).Contrary to popular beliefs; these deviations are more often due to internal problems than vendor problems.

Below is a list factors, if monitored closely, can help calculated the actual implementation price and narrow down deviations:

• Implementation Intrusions
  This is an expense contributing factor that is often not counted in implementation costs. In any ERP implementation, resources will have to halt their regular work frequently for many reasons: discussions with the ERP consultants, dry-runs, meetings, process re-works
• ERP consultant Intervention
  The ERP costs to a great extent are defined by the type and duration of services availed from the ERP consultants. Any superfluous sessions or unnecessary demands will only add up to the consultation bill. It is very important to be thorough with your own system to do away with such overheads
• ERP customization costs
  The extent and need for ERP customizations is an issue that should be carefully dealt with. Though maximizing customization may seem the easy way out, decisions on ERP customizations should be made by carefully reviewing the customization benefit and monetary damage trade-off.
• ERP training
  ERP training is often a very time consuming and monetarily draining segment of ERP implementation. Whether the IT staff only must be trained or the entire business user team, is a prerogative of the client.

To learn more about the Enterprise Resourse Planning (ERP) Solutions custom software Solutions implemented by iSummation, please contact us. We are a specialized vendor based in India offering ERP consulting and custom web as well as desktop ERP implementation services.

Further Reading

Common Reasons for Outsourcing ERP

6 Steps to successful ERP implementation

Containing ERP costs

ERP software customization

How to avoid ERP failures