An effective ERP implementation definitely comes with a cost, but more so with better prospects and returns for your company. Once the ERP is installed, the support and maintenance consume about 20% of the budget. A study concluded that more than 40% of companies went beyond the stipulated budget because they either lacked planning or cut corners during the initial setup.
This simple math indicates how important it is to be prepared and have a solid plan while integrating ERP. A wide range of factors influence the cost of ERP and here are some precautions you must consider to avoid potential setbacks:
If you are targeting to implement the system at one go to cut down costs, then you’re probably aiming for the stars! You must understand that ERP integration is not a one-step process and checks & balances are of significance.
As and when you progress, you would understand if the setup adds value to your company and it will likewise evolve with every subsequent undertaking.
There are two crucial non-monetary factors that determine the effectiveness of any system and its sustenance. These are Time and Productivity. There is a substantial time involved in the successful implementation of ERP, which extends to a couple of months. Hence, you must be prepared for its hassle-free yet time-framed implementation. Also, when employees of a company would start working on an ERP-enabled system, they will take more time to complete certain processes. However, this would only be at the initial stage. And once they are through with its functioning, you are sure to witness faster and enhanced productivity.
This way, your decision of installing a substantial ERP into your systems would prove to be of great value if you have a rock-solid plan and do not cut corners while going ahead with it!