Every company needs to plan its resources accordingly especially; when you have to achieve huge targets and goals of the year. The one thing that needs to be at the place for successful goals is organized resources.
So, many enterprises start implementing Enterprise resource planning (ERP) to keep things intact and right on the place.
Now, there is only one thing that clicks anyone’s mind even if you own a small business organization i.e. the cost of implementing an ERP system. Business is all about knowing when and where and how to invest? All these questions need to be answered before investing in your business.
Planning is a crucial part of any organization and to plan things better, you will need ERP systems. But the main concern is the cost of ERP implementation and how you can manage it?
Let’s see the common factors that can help you in an ERP system cost estimate.
Common factors for pricing:
ERP solutions are only available with a license fee ( take Microsoft Dynamics 365 licensing as an example). Implementation has its cost and every company has to think about it before starting with an ERP solution.
The total cost of implementing an ERP system is quite easy to calculate using the ERP implementation cost calculator before you complete the project. However, certain factors can help you in estimating the round figure to plan your budget accordingly. Following are the four factors that one should keep in mind for cost estimation of ERP systems:
· Hosting location
Most ERP vendors offer cloud-based ERP software. Others may provide the option of deployment on-premise or the combination of them.
· Number of Active Users
The number of users varies as per the number of employees any enterprise has. Small businesses have fewer employees, so you will invest less in it. On the other hand, larger organizations will have more employees.
· The requirement of built-in applications
Once you have determined the deployment method and active users, you must understand the need for built-in applications. It needs to be accurate and according to the work type/services you have in your office.
· Customisation level
When purchasing the ERP system, remember to negotiate based on your requirements and take all of the customization details to avoid any inconvenience in the future.
ERP implementation cost can be determined on initial stages only if you have costing ideas about the above factors.
The cost of it doesn’t end on these factors; it moves further with the training, customized reporting, redesigning of the process and maintenance.
This process of implementation is not a one-time investment. You will need to be much more clear and precise about your needs for the business.
If you still need an expected amount of ERP implementation, then it may range from $75,000 to $750,000. If you are implementing it properly, it can pay for itself in a few years, we offer a free ERP ROI calculator that you can use for an instant result of the return on investment when implementing an ERP.