ALL >> Computers >> View Article
Erp Software Implementation Average Cost

The ERP implementation cost depends on the type of hardware, software maintenance, internal cost, the vendor charges, and on the hidden costs. But due to the recession the cost of ERP implementation has been reduced in the last year. For example, in 2008 the average cost of the ERP implementation was of 8.5 million $ while n 1010 the cost was reduced at 6.2 million $.
The company must choose the software according its needs. The small and middle sized companies can opt for a client server module while the large organization might select N-Tier modules. Those companies that have retail units indifferent locations might go for multi location ERP solution, while many other companies might choose ERP software that can offer solutions in different remote geographical areas. So the ERP software cost can be determined according the software functionality and the depending on the user’ request.
The consultancy cost is included in the ERP overall cost. So the costs of an external ERP expert are added to the ERP software cost.
There is also a customization cost that must be taken into account. Many ERP packages ...
... might need additional customization and for this some vendors might charge additional charges.
Data conversion is the most difficult job when it comes about software implementation. Data conversion implies the process in which the organization historical data is integrated in the new software. The difficulty of the implementation process consists in ensuring the data accuracy. The proper functioning of the software depends on the accuracy of the data that are transferred into the new database.
Tasting cost can also determine the overall ERP cost. Testing the new software is a very important process because during the testing the errors are corrected and the software bugs are fixed. During the tests you can check the integration level, you can ensure the correctness of the transferred data and you can ensure the software scalability to determine if the software is able to handle a certain number of users.
There is a training cost, too. After the software has been implemented the company employees must be trained to use the new software. If the employees are not initiated in handling the ERP software they will find very difficult to use it.
When we talk about ERP implementation cost we have to talk about hidden costs, too. There are a series of hidden cost that cannot be seen from outside but the companies that undergo the automation process often confront with them. These hidden costs consist in: the period of time necessary for the resources and employees to familiarize with the new software and to be able to use it properly. It is well know that during this period the software productivity is minimal and this fact is considered a hidden cost.
Another hidden cost is considered the replacement cost. Many times the companies must discontinue the old system in order to replace it with the new one. Because the replacement of the hardware attachments is not included in the ERP initial cost we can consider it a hidden cost, too.
Read about Disadvantages of ERP Software. Also know Tally 9 Features, Advantages. Read about Top 10 ERP Software.
Add Comment
Computers Articles
1. Employee Attendance System | 1 Sgd Mobile AttendanceAuthor: knani
2. Employee Mobile App For Time Attendance In Singapore
Author: knani
3. Malaysia Website Design – Rm499 For Unlimited Pages
Author: chinni rishi
4. Budget Website Design Malaysia | Rm499 & Unlimited Pages
Author: chinni rishi
5. Streamlined Attendance Tracking | Free Payroll
Author: kayakakula rishi
6. Singapore Employee App | Free Payroll | Just 1sgd
Author: kayakakula rishi
7. Biometric Fingerprint Attendance System | Free Payroll | Starting At 1sgd/mo
Author: kayakakula rishi
8. Top Web Design Agency Sg | 499sgd Unlimited Pages
Author: kayakakula rishi
9. Best Cms Web Design | Sgd 499 Nett Singapore
Author: kayakakula rishi
10. Your Web Project | Singapore | 499sgd Unlimited Pages
Author: kayakakula parvathi
11. Create Your Web Solution | Singapore | 499sgd Unlimited
Author: kayakakula parvathi
12. Tailored Virtual Security Guard Sg Plans From 30sgd
Author: chinni parvathi
13. Confined Space Management Best Practices | Free Payroll
Author: chinni parvathi
14. Zuckerberg’s Bold Ai Initiative: 5 Big Moves Unveiled
Author: Impaakt Magazine
15. Trending Technologies In Frontend Development
Author: davidjohansen