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In this article we will shed some lights on a typical ERP system pricing and variety of cost involved during ERP implementation, Further How to reduce your ERP cost, As we all know that ERP implementation cost is one of the most important factors that decides the initiation of any ERP project for almost every businesses. Cost calculations and proper pricing information is important area before you select any ERP solution for your business.
Enterprise Resource Planning system is considered as one of the most important & powerful system that manages all your business processes and interaction with different department effectively and offers you more profitability and growth. ERP solutions now a day are used by almost every business ranging from small to mid-sized and of course Big companies. It sounds very generic when you talk about ERP implementation but there are many areas that needs to be taken care of while undertaking any ERP Development. Although the biggest challenges for any ERP development is the cost and the timelines.
Different costs involved in ERP implementation?
There are various cost involved during ERP implementation which needs to be taken care of before finalizing the project. Although ERP vendors offer you with one stop solution that includes variety of services involved before and after Implementation
Some of the high level areas where ERP implementation costs differs based on the services performed by the vendors
1. Business Requirement Analysis cost
2. Software development Cost
3. Licensing Pricing
4. Onsite services offered by the vendor
5. Customization costs
7. Support and so on . . .
Based on the services offered the cost and pricing of an ERP solution differs.
How to reduce your ERP Implementation cost ?
ERP implementation cost is the major factor that motivates any business to start with ERP project — Sometimes high cost also create failure in ERP projects as the projects are dumb due to no further investment — Let’s discuss on the ways your organization can reduce ERP Implementation costs.
• Plan properly:
Any ERP system needs a proper planning onto the modules, customization, workflows, and most importantly the employees who are the actual user of your ERP system. ERP planning helps in reducing the cost which you may incur in customization and other related services
• Choose your System Wisely:
Selecting proper ERP software is another important factor. Choose your system wisely check the in and out functionality which is provided by the ERP software — There are many ERP software available for specific industry this reduce the cost of ERP implementation drastically.
• Reduce Customization or Special Requests
Customization is one of the key factors that enhance the price of ERP implementation. Reducing the customization can help in low cost and quick delivery of the projects. We suggest initiating with vanilla out of the box ERP implementation for less important processes of your business
• Check your Vendor Capabilities:
Vendor experience is another factor that can enhance your ERP software cost — Select your vendor wisely who has already experience with similar kind of implementation — This ensure less time consumption and reduce the failure as well as cost.
• Use Agile Development Methodology:
If your ERP implementation is big then Agile Development Methodology can reduce or divide your whole ERP investment. Agile Development Method divide your whole implementation in variety of phases further you can also have hold on your payments to the vendor as it is paid in small installments.
We hope the above tricks can help your business to reduce the ERP implementation cost — You can also consider using Open source ERP software rather going to Proprietary software as these Open Source software are license free and reduce the cost of overall implementation drastically
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Author Bio : The author is a blogger. This article is about Odoo hourly and odoo monthly support packs to our client.