ERP implementation cost is one of the most important factors that decides the initiation of any ERP project for almost every businesses.
ERP – Enterprise Resource Planning is considered as one of the most important system for any small or medium size businesses. ERP the term seems to be very short but when implemented correctly, can change the way of working in more profitable and optimize manner. Many a times organization ignore ERP implementation because for one of the most important matter ie: It consume too much cost. In this article we will discuss the tips on how to reduce your ERP implementation cost.
Read our Article – Advantages of customized ERP software
So what are the different costs involved in ERP implementation ?
Not detailing every areas but there are different types of cost related to ERP implementation some of them on a high level is the licencing cost, customization cost, ERP implementation cost, Training, support and so on …. These services from your ERP vendor can increase the cost depending upon organizational requirements.
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 a 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 to initiate 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 – The ensure less time consumption and reduce the failure as well as cost.
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 implemetnation drastically
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