The true cost of ERP implementation

Not all ERP implementation are the same. The cost ofrnimplementation differs dramatically with the job performed.

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This article is a gentle introduction about the factors thatrninfluences ERP installations.

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When you are looking into getting a superior quality ERPrnsystem, you need to be aware that the upfront price may not be all it costs.rnYou want to make sure that you are aware of the total cost of ownershiprnof the product, and how it will affect your organization on an on-going basis.rnHere are some of the expenses of which you might not be aware that you need tornplan for during implementation.

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·       rnLicensing fees: per user,rnper module, user & model, flat fees, one-time-fees

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·       rnImplementation fees: threerndifferent types of implementation

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o  rnExpress for small businesses,

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o  rnStandard for businessesrnwith minor standard processes modifications

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o  rnAdvanced for maturernbusinesses that requires modifications to address some specific vertical needs

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·       rnCustomization fees: therernis no “one size fit all”. To get the best and a competitive advantage, you needrnto customize the ERP

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·       rnTraining: without it yourrnusers will not get the maximum value out of the ERP

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·       rnData migrations: You needrnto migrate legacy data unless you want to keep switching between differentrnsoftware and manually getting historic data.

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·       rnMaintenance & Support:rnERP is not a single install & run software. It requires continuous changesrnto keep up with the Legal business changes, new features and advancement in thernfunctional functionalities and business opportunities

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·       rnHosting: the ERP should runrnsomewhere. Whether on cloud, premises, SaaS or PaaS, the cost should be takenrninto account

How to Avoid it

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

 Some vendors, performing ERP implementation in Lebanon, usernthe “Calling price” (or in French called “Prix d’appel”) to lure business tornsign on a deal where the real price is 10x more than the proposed price. Thernend result is a frustrated business and risking the whole solution failure orrnpaying a very expensive cost.

 Azkatech is an OfficialrnOdoo partner in Beirut with a full mature team for ERPrnImplementation in Lebanon following the latest software project managementrnpractices to achieve predictable outcomes and cost effective ERPrnimplementation.