Cost,ERP,Implementation,Direct computer Cost of ERP Implementation - Direct and Indirect Cost


Gone are those times when the companies and the organisations didn't need a hi-tech system to handle them. Owing to the considerable increase in the business sector and thus, an enormous increase in the complexity of the organisational struc ----------------------------------------------------------Permission is granted for the below article to forward,reprint, distribute, use for ezine, newsletter, website,offer as free bonus or part of a product for sale as longas no changes a


ERP implementation is a daunting task, and the costs vary according to the number of modules, services provided and the requirement of the organization. ERP implementation cost depends upon a number of factors, both constant and variable like the cost of hardware, number of software or modules, license cost, implementation time, training of the in-house staff, consultation costs, costs for extra tools and applications, integration, testing, customization of the software and future maintenance costs. Among these, the cost of hardware and license are constant or fixed while other costs like training, consultation, integration and customization vary according to the business requirements. Again, different ERP vendors offer different ERP software packages with costs varying according to the ERP features and tools.Cost of ERP implementation can be covered under two categories:Direct Cost: This includes the expenses incurred on basic hardware, different operating systems, software and database license, number of suites, add-on applications, third party license and ERP integration. The total cost of ownership (TCO) again varies according to the number of users. A two-tiered ERP architecture can cost between $3,000- $10,000, but the TCO can be as high as $60,000 depending upon the number of users.Again, the cost of the hardware depends upon the number of workstations, networking services, service providers and it does not vary too much. The total cost again depends upon the adopted technology and the users. Implementation cost varies greatly depending upon the complexity of the business process. One-tier ERP architecture would involve lesser expenses and prior knowledge of the team before ERP implementation reduces the cost considerably.Indirect Cost: Indirect costs are variable, and it is often tough to estimate the amount. Expenses related to transportation, consultation, training of in-house staff, time consumption for implementation and communication mostly remains on the higher side than the estimated cost. In some cases, these may amount to more than 20% of the estimated cost.Customization of the ERP modules is very often required and the costs related to it turn out be very expensive. Often, the original ERP module gets damaged in course of customization, and the organization has to bear heavy expenses. Above all, different ERP vendors offer different prices for different types of customization and one should have in-depth knowledge before selecting the fitting customized module.Training of the staff for efficient and intelligent handling of ERP systems is another recurring expense. The staffs need to be trained in installing ERP and data migration. Consultations necessary for this process heightens the cost. Since the employees in the initial stage of ERP implementation cannot exhibit the required efficiency, the TCO ultimately goes up. To minimize the training costs, a well defined team is provided to restrict the number of users.

Cost,ERP,Implementation,Direct

computer

Equipment Rental Software – Features And Cost

Equipment rental management software is an essential thing these days for any equipment rental company.A well-developed equipment rental software provides you with a variety of features that can really help you maintain and organise your cus ...

computer

5 Big Reasons Why I Migrated From Angularjs To React

I have 5 main reasons for my angularjs to react migration. No, it's not a comparison on which is better. A comparison between apples and oranges would make no point. React is a library, and angular is a framework. Both can do stuff in their ...

computer

How to troubleshoot McAfee error 2318?

Security software means McAfee! For many computer users, McAfee antivirus is the only choice for security software as it provides all the features and tools which are necessary for device and data protection. This robust antivirus merely sho ...

computer

Manage Multiple Counter With AlignBooks Point of Sale

Fulfilling your businesss needs which can grow your firm is our aim. AlignBooks is better known for providing a strong pillar to newly started or midway businesss. Those companies who dont want to fall back with irregularity manage the inven ...

computer

How to Autoplay Embedded YouTube Videos

Source: How to Autoplay Embedded YouTube VideosEmbedding a video or audio enables the users to share their videos with any of their preferred sites or any social networking platforms. They can do so by copying the embedded link of the parti ...

computer

3 Major Mistakes to Avoid in Retail Business

Truth be told, nearly half of the retail businesses survive longer than four years and which can be something to ponder for a newbie before stepping into the industry. However, this being said, it is also true that you can excel in the indus ...

computer

Start Your Own Computer Repair Business

1. Know your street value. In the early 90's, running a PC repair business centered around selling parts and products, with service on the side. Today, it's about selling hours. If you run a business, you need to consider the X3 rule. That m ...

computer

How Establishments Show Up in Restaurant Searches

The revolutionary rise of technology has made things easy-peasy for consumers in the restaurant industry. Unlike the old days, the availability of innumerable platforms has made it possible for diners to choose from various searching options ...

computer

GuildWars 2 :

The last expansion pack for Guild Wars 2 was Path of Fire, which was released in 2017 and brings you a new enemy-Balthazar, the evil god of war. Although this doesn't sound like another expansion pack currently in production, some fans ma ...

computer

Customer Support at the time of COVID-19 Pandemic

COVID-19 is the worst crisis of our time as we observe social distancing protocols being imposed all around the world. While these measures are a step in effectively managing the COVID-19 pandemic, Hospitality and Retail businesses are confr ...

computer

How to Choose a Contract Management Solution (CLM)?

Contract life cycle management (CLM) systems can simplify and automate contract creation, negotiation, execution and storage. They are an intelligent alternative to the tedious hand tools formerly used for these tasks, which lacked visibili ...

computer

Contacting Google Live Person to Resolve Your Issues

Users are fond of all the Google supported products and look forward to the best services. Also, Google as a whole has never disappointed its users and helped them at every point with its commendable services. Also, being a customer-oriente ...

computer

how to uninstall discord

How to Uninstall Discord in Windows 10? has supported open source technologies, our tool is secure and safe to use. To uninstall a discord from your windows, you'll use this method which is given below.USING THIRD PARTY TOOLS1. Firstly, you ...