The Real Cost of Implementing an ERP
When looking at the cost of an ERP implementation, there is no real estimate figure that your company can view. Due to the complexity, and time spent developing the right system, it means that the Implementation cost varies greatly depending on your business size, industry, country, etc.
Estimation Ranges
Small Businesses $10,000 – $100,000+
Medium-Sized Businesses $100,000 – $500,000+
Enterprises $1 Million – $10+ Million
Due to the range of costs, it is hard to exactly determine your estimate without discussing it with a Microsoft Dynamics Consultant. The Majority of these costs encompasses both the internal & external Human Resources.
If we look at breaking down the costs to better understanding where the money is spent, the three main aspects include the number of users, the industry of your organisation, & the number of business locations.
- Users – According to Software Paths ERP Report, the average cost of the user in an ERP implementation is around $7200, while not all employees need to be users in the implementation, around 1/3 of staff will use the company’s ERP Software.
- Industry – Depending on whether your organisation specialising in service, you may find it difficult to find the right solution for you. For Manufacturing, Distribution & Transport, etc, there are specifically tailored solutions for these businesses, which may help to reduce cost, with no need for heavy customisation or third-party add-ons which can become costly.
- Locations – If your organisation is operating out of multiple factories or offices in multiple locations, there will be increased costing, ensure that the vendor you choose helps to provide the information above to ensure you know the costing of a potential ERP Implementation.
The total cost of your ERP will be heavily dependent on the above, but there are still multiple factors you will have to consider when implementing Microsoft Dynamics 365
we also recommend using our ERP ROI calculator to see how much you’ll be saving by implementing an ERP.
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Understanding business needs is a key step in the process of implementing an ERP. It is very difficult to determine an accurate scope of your project without an in-depth understanding.
