How Much Does SAP Business One Implementation Cost?
Now that all companies have understood the benefits of upgrading themselves to SAP Business One, they will like to know about the costs involved. Cost of the software depends on several factors. There can be no general formula for it because the process of implementation is both industry-specific and based on user’s preferences. But we can look at the factors that determine the cost of implementation and then estimate the expenses accordingly. The primary consideration should be given to the hardware requirements, OS, support and not to forget, the SAP Business One license costs. Along with it, the major contributing factors that affect the price involved are the following:
- Hardware and OS Requirements: What kind of hardware does a company already have? Does it need an Operating System as well? Though the old hardware can be brought into use for the implementation, but then, one has to check if they are all in working order.
2. The location of the office(s): If a company has more than one office and plans to implement Business One in more than one branch, then the costs will rise. Data consolidation and inter-branch requirements should be addressed beforehand. If the company has branches dispersed in multiple cities or is located in many countries, then the costs will be different. Different set-ups installation and configuration procedures based on different legal requisites for each country will affect the pricing to a good extent.
3. Complexity and the number of reports: More complex the reports to be written to your specific needs will determine the days needed for implementation. That in turn, will influence the pricing. To optimize the costs, one should like to minimize the custom reports so that the implementation period can be cut down.
4. IT Training: Training need to be conducted depending upon how many employees need to work on SAP Business One. Training can be on-site and off-site. Will site-specific user manual be required? That is a question to address. In general the implementation costs can be cut down by reducing the number of training days required.
5. Business-Specific: Every business process has different requirements. The pricing will depend on the specifications of a business process requirements. If customization or development is recommended, then even that adds up the cost. A smart way to tailor the costs is to get a simple implementation initially and then at a later stage of development; additional functionalities can be installed.
6. Price is also influenced by the size of the company (including third-party integrations). The transaction volume will be looked at when the price is determined.
7. A sharp project management and a proven methodology serve as the basis for all successful ERP implementations. It is in company’s interests to have a project manager dedicated to the project and having an exposure in successful SAP Business One implementations. A resourceful change management/project management strategy can help depreciating the costs.
8. SAP Business One License cost: The license cost is important. The fee depends on the number of users and the nature of access required. Also, the license cost can vary based on local legal requirements.
SAP Business One is lower than the average ERP user cost at $2,975 per user. According to market surveys, it has been found that a complex distribution company can estimate to pay about $4,000 per user. However, it is again only an average, so in your case, SAP Business One implementation may or may not be that close to that amount. But we can get a rough idea about the pricing of SAP Business One from the above-mentioned information.