As we all know, ERP implementation is not a straight-forward project. There are many different aspects that need to be taken into consideration before jumping on board. Especially when it comes to costs, there may be some underlying areas that you haven’t thought of and were not added into your ERP budget. Instead of allowing these to pop up unexpectedly once you’re halfway through the ERP implementation project, plan ahead and be ready for them.
It’s a generally accepted statistic that a company will change their accounting or ERP system once every 7-10 years due to growth, increasing complexities, new management, poor initial ERP selection, etc. No matter what the reason behind the change or whether you’re embarking on your first ERP project or you’ve done this before, ERP project planning, especially budgeting is mission critical. There is no easy way to estimate how many users you’ll need or what type of investment you might need to make in a business system but here are some suggestions based on our experience working with companies in a wide variety of industries to help you with your budgeting while you build a business case for next generation ERP.
By James Mallory
ERP Budgeting Tips (Part 7)
There is no easy way to estimate how many users you’ll need or what type of investment you might need to make in a business system but here are some suggestions based on our experience working with companies in a wide variety of industries: Continue reading
By James Mallory
Mid-Market ERP (Part 4)
The next step up from Anytime Supply Chain and Entry Level ERP systems is again, a much larger jump in terms of cost and complexity. Epicor, for example, is one of the leading midmarket ERP providers for manufacturers. Software alone will cost about $5,000 per user (same for most similar competitive products). So a 10 user system will be around $50,000. But in this market segment, the implementation will be at least a ration of 1:1.5 if not closer to 1:2 software to consulting. Consulting rates are about $175 to $225 per hour for experienced consultants. So a $50,000 investment really means a $125,000 to $150,000 investment for a fully implemented solution. This is still money well spent but it may simply be out of reach for smaller companies. Continue reading