Without a realistic budget, usually undersized, you end up cutting activities that are part of the critical success factors, tracing the path to an unhappy ending. Often the unrealistic expectations of the user company regarding the cost of an ERP is the first mistake made when planning the implementation of an ERP. What are the hidden ERP implementation costs? How much to invest in an ERP system? Well, above you’ve got a percentage rather than an exact amount in euros or dollars. Training sessions will oscillate around 5% of the total expenditure Cost of an ERP Support, for let’s say a period of 5 years is probably between 13 and 39% of the whole costs. Customizations will probably be a minor cost – 2%. Hardware will set you back between 12 and 20%. Sole implementation may span between 20 and 55% of overall ERP implementation costs.

Infrastructure software licenses can amount to about 13 %. Software application licenses can consume between 13 and 25 % of the total cost. These include maintenance, support, implementation, upgrades, and the cost of the people in the organization that will be involved in the project. When companies are about to implement an ERP system, they spend a good amount of time haggling over the price of licenses but do not pay attention to other costs. There are even those who think that it is not a purchase and that incorporating an ERP in the company is comparable to a civil engineering project, such as the construction of an industrial plant.Īlthough the discussion about the similarities is interesting, to better understand what an ERP implementation project is about, at this point let’s focus on one important aspect such as ERP implementation costs.įirst off, you need to realize that, contrary to a common misconception, there are other costs, not only licensing ones. Some say it is like buying a house, others say it is like buying a car. Material costs can be broken down into the following:Ī lot has been written about the purchase of a management system. By material costs we mean any type of economic outlay and by human costs we mean the time that the company's personnel have to dedicate and that is generally taken from other types of activities.

The total cost of ownership covers a broader period that includes the entire useful life of the system, including the necessary expenses for its maintenance, upgrading and expansion.īasically, there are two types of costs: human and material.

How do you estimate the cost of an ERP?.

What are the hidden costs of a management system?.

What is the cost of an ERP similar to? - Implementation Cost Example.

This article includes answers to some buzzing questions: What is the cost of an ERP? How much should you invest in an ERP system? If you’re wondering what the answers to these questions are, read on!

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