Enterprise Resource Planning Software is considered as one of the most significant and ground-breaking frameworks that deal with all your business procedures and communication with utmost efficiency. The application results in greater productivity and development in the organization.
Today without any disparity in the size of the business, ERP solutions such as Odoo is widely used among the business circles. Running from small-medium to big organizations, usage of ERP solution in the present phase is no new phenomenon.
However, though it sounds generic when you talk about ERP, there are numerous regions that should be dealt with while undertaking any ERP Development. The greatest challenge or difficulties hidden in any ERP development is the ERP price, cost, and timeline.
In this article, we will examine a few tips that can help you to decrease your ERP price and ERP Implementation cost.
Before we get into the tips, let us priorly discuss what are the different ERP price and cost associated with ERP implementation.
It often comes tricky to the business their ERP implementation. The whole process demands a healthy and full-fledged support of a good ERP vendor, experienced techno-functional resources and other assets.
The services involved before and after Implementation keeps differing from one service vendor to another. Few ERP vendors provide a one-stop solution that includes a variety of services. And each service comes with the different cost that should be dealt with before finishing the project.
First and foremost, comes the cost associated with Business Requirement Analysis and Documentation.
Though this practice sounds mere documentation, this is considered as the foundation layer of your ERP implementation process. The business requirement analysis and following the documentation guarantees your ERP development and implementation are on the proper track. BRD documentation cost can be high or low dependent on the number of days functional and technical ERP consultants work in dissecting your business forms or analyzing your business processes. In case, quickly the requirement analysis is completed, the cost will be relatively less.
Secondly, comes the ERP Price for Software Development.
There are numerous factors influencing the final price of your ERP system. There come different prices such as installation, implementation, configurations and so on.
License Fees: In case your business opted for a license based ERP or Enterprise Editions, you have to pay the authorizing cost or the licensing fee for the ERP programming. This may differ depending on the number of user permissions you will require in your association.
However, there are open source ERP solutions that save you from paying huge license fees.
Read the benefits of implementing open source ERP solutions
Onsite Service Charge: There is no basic package for the onsite service offered. The price for an onsite employee shall be fixed by the service provider in accordance with their company policy and terms. The pricing schedule is the sole decision of the service vendor.
Customization: Being unique and original makes you stand out from the crowd. Likewise, implementing robust applications, help you survive the high competition of the market. Custom software, in that case, comes as a benefit of your business as it helps you to accommodate all those preferences and expectations you aspired for in your business. Custom software perfectly pitches to the need and specifications of the company. However, comes with customization costs, enhancing your ERP price. Customization is performed when the application lacks any feature that is required for the efficient performing of business operations.
ERP Price for Training: Although training cost is incorporated into the entire undertaking plan, it is another part of ERP implementation, where the expense may incur.
Support: Annual maintenance, bug fixing, and support cost is also charged by the vendor during the ERP implementation process. However, based on the services offered by the respective vendor, the percentage level in cost and pricing varies.
How to decrease ERP Price and Implementation cost?
What motivates and demotivate a business from the ERP project is its price and implementation cost. Sometimes the quoted prices get too huge for the business that they are forced to keep their idea on halt or stop the ERP implementation process in midway. Stopping in midway, often thus paves the way to ERP implementation failures.
Let's examine the manners in which your association can lessen the ERP Price and Implementation costs.
Any ERP framework needs legitimate planning onto the modules, customization, work processes, and in particular the employees who are the real users of your ERP framework. Proper planning helps in diminishing the cost which you may acquire in customization and other related administrations
Pick your System Wisely:
Selecting wisely your ERP is another significant factor. Always pick your ERP framework shrewdly looking at the significant usefulness the ERP system features. For instance, choosing Odoo ERP for your business helps you attain a complete management tool for various business operations be it the accounting, sales, purchase, human resource, warehouse management or any other. Odoo’s each management module is robust in nature and has extensive functionalities meeting specific departmental needs. One need not go for standalone applications for fulfilling a various business need if you implement Odoo at the workplace.
Customization is one of the key factors that improve the cost of ERP execution. Diminishing the customization can help in ease and speedy conveyance of the tasks. Go for customization, only if it is that pertinent for the business.
Read why over customization is harmful to the business.
Go for Experienced Vendor:
Merchant or vendor experience is another factor that can improve your ERP implementation cost. Choosing an experienced vendor in similar kind of undertakings ensure less time consumption and lesser failures. This reduces the ERP price to a certain extent.
Utilize Agile Development Methodology:
In case your ERP implementation is enormous and big, opting Agile Development Methodology is viable. It can help you to reduce as well as divide your ERP investment. Agile Development Method divides ERP implementation in a variety of phases, offering you the flexibility to make payments in installations to the vendor.