| How much is too much? | | | | Operating system |
| THE cost of packaged ERP depends on the number | | | | Database license fee |
| of ERP modules, number of end-users, complexity of | | | | Core software license fee |
| software and ERP vendors. ( The total cost of ERP | | | | Additional module license fee |
| ownership includes the costs of packaged software, | | | | Additional seat license fee |
| hardware, professional services (maintenance, | | | | Third-party software license fee |
| upgrades and optimization) and internal costs. | | | | Integration of third-party software |
| ERP software that involves the integration with | | | | Software customization |
| external business entitles generally costs more. ERP | | | | Project management |
| vendors offer discounts to organizations that invest | | | | Consultancy |
| in a suite of ERP software systems. Though many | | | | Training |
| mid-sized organizations typically commit a few millions | | | | Upgrades |
| in packaged ERP software, there are number of | | | | Much of the cost information could be obtained from |
| result-oriented low-budget packages are available in | | | | the vendor. While it is likely that the vendor will |
| the market today. | | | | provide a specific figure for each item, this may only |
| Implementation of ERP system sometimes demands | | | | be an estimate. This is likely to be the case for such |
| purchase of new computer hardware, system | | | | items as consultancy, which history suggests is an |
| software, network equipment and security software. | | | | area for potential overspending. In this case, an upper |
| The costs of hardware vary in a wide range | | | | and lower value, and the expected value should be |
| depending upon the scope of implementation and | | | | sought to give a fairer reflection of the potential cost |
| platforms. The hardware typically takes a big bite in | | | | exposure. |
| the cost for mid-sized organizations that implement | | | | While some of these costs will be one off (i.e. |
| ERP systems. | | | | hardware, training and consultancy) other will be |
| Implementing ERP system requires the services of | | | | ongoing (e.g. maintenance). To get a better picture of |
| many professionals. These services cost money. The | | | | the cost exposure, a long-term perspective should be |
| major costs under this category are customization, | | | | taken. A meaningful time horizon is five years. By the |
| integration, data conversion, data migration, testing | | | | time that five years has passed it is quite possible |
| and training. | | | | that the application has been reviewed and a new |
| It is unlikely that a financial director would support the | | | | budget established for additional work, such as an |
| idea of unlimited funding for the ERP implementation | | | | upgrade or additional functionality. |
| project. Instead, from a control stance, a budget | | | | For more information kindly visit: |
| needs to be established. This will be based upon an | | | | OR Please Contact us at: |
| estimate of the likely costs. In identifying where the | | | | TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle |
| costs are likely to arise, consideration should be given | | | | Industrial Estate,Thane (West) 400 604, Maharashtra, |
| to: | | | | Tel: +91 22 25827692/+91 22 25828775. |
| Hardware | | | | |