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Date : 2019-05-31

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The true cost of ERP implementation

The true cost of ERP implementation

Date : 2019-08-13

Not all ERP implementation are the same. The cost of\r\nimplementation differs dramatically with the job performed.

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This article is a gentle introduction about the factors that\r\ninfluences ERP installations.

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When you are looking into getting a superior quality ERP\r\nsystem, you need to be aware that the upfront price may not be all it costs.\r\nYou want to make sure that you are aware of the total cost of ownership\r\nof the product, and how it will affect your organization on an on-going basis.\r\nHere are some of the expenses of which you might not be aware that you need to\r\nplan for during implementation.

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·       \r\nLicensing fees: per user,\r\nper module, user & model, flat fees, one-time-fees

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·       \r\nImplementation fees: three\r\ndifferent types of implementation

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o  \r\nExpress for small businesses,

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o  \r\nStandard for businesses\r\nwith minor standard processes modifications

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o  \r\nAdvanced for mature\r\nbusinesses that requires modifications to address some specific vertical needs

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·       \r\nCustomization fees: there\r\nis no “one size fit all”. To get the best and a competitive advantage, you need\r\nto customize the ERP

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·       \r\nTraining: without it your\r\nusers will not get the maximum value out of the ERP

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·       \r\nData migrations: You need\r\nto migrate legacy data unless you want to keep switching between different\r\nsoftware and manually getting historic data.

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·       \r\nMaintenance & Support:\r\nERP is not a single install & run software. It requires continuous changes\r\nto keep up with the Legal business changes, new features and advancement in the\r\nfunctional functionalities and business opportunities

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·       \r\nHosting: the ERP should run\r\nsomewhere. Whether on cloud, premises, SaaS or PaaS, the cost should be taken\r\ninto account

How to Avoid it

On your next ERP proposal make sure to verify that all costs\r\nare taken into account and think of the total cost of ownership.

 Some vendors, performing ERP implementation in Lebanon, use\r\nthe “Calling price” (or in French called “Prix d’appel”) to lure business to\r\nsign on a deal where the real price is 10x more than the proposed price. The\r\nend result is a frustrated business and risking the whole solution failure or\r\npaying a very expensive cost.

 Azkatech is an Official\r\nOdoo partner in Beirut with a full mature team for ERP\r\nImplementation in Lebanon following the latest software project management\r\npractices to achieve predictable outcomes and cost effective ERP\r\nimplementation.

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