CEO & Co-Founder, Industria-Academia | Digital Transformation Leader, Asrotex Group | IPE, BUET | ERP & Enterprise Solutions Specialist | Management Consultant | 28 January, 2019 (Monday)View 2578
Although there are many different costs involve in ERP implementation, those can be grouped into three categories.
The ERP software is a composite of Applications and Database. It may contain some 3rd-party add-on applications too.
The Applications and Database require 2 types of costs
There are several hardware requires for running ERP Solution.
The ERP vendor provides software as well as the consultants. The consultants do a lot of work to complete the project. Here is a list of costs we have to pay related to the consultancy.
Many people think that Software License cost is the biggest cost of ERP. But they are totally wrong.
Here is the real scenario of the 3 categories…
The consultants charge money hourly basis. They cost $50 to $200 per hour.
The Software License cost (Category A) and Hardware cost (Category B) are paid only in the beginning of the implementation. The maintenance cost is also not much comparing with the others.
But the Consultancy cost (Category C) occurs not only before go-live and but also 2-5 years after go-live!
If your ERP implementation takes 2 years, then you will have to pay hourly consultancy costs during these 2 years. This is not the end. You will need new features, new customizations, new reports every month you spend on ERP in next 2-5 years or even more. Therefore consultancy cost is never-ending.
If you calculate the total cost spent in 5 years from the day-1 of ERP project, you will see that more than 60% cost is gone for Consultancy.
Yes, don't be hopeless. There is a way to reduce the consultancy cost and save 50% cost of the ERP implementation. Following that way, you will not only save cost, but also ensure successful & sustaining ERP. Contact us to know.
----------------------
#ipebulbul #360BA
#ERP #OerationsManagement #BusinessAnalysis