How Much Will This Cost: Time and Money

By Rich Duncan

A metric to consider for an ERP system is implementation time and cost. This metric measures the amount of time and resources required to implement the ERP system, including the cost of hardware, software, and consulting services, as well as the time taken for installation and training.

Implementation time and cost can vary widely depending on the size of the organization, the complexity of the ERP system, and the level of customization required. Large organizations with multiple locations and complex business processes may require more time and resources to implement an ERP system than smaller organizations with simpler processes.

To keep implementation time and cost under control, it is important to plan carefully and establish clear objectives for the ERP system. This includes identifying the specific business processes that the ERP system will support, defining the data that will be managed in the system, and establishing the roles and responsibilities of team members involved in the implementation.

The cost of an ERP system can be broken down into several components, including:

  • Software licensing fees: The cost of purchasing the ERP software.
  • Hardware and infrastructure costs: The cost of servers, networking equipment, and other hardware required to run the ERP system.
  • Consulting fees: The cost of hiring consultants to help with the implementation, customization, and training.
  • Internal resource costs: The cost of dedicating internal resources to the implementation, including project management, IT staff, and end users who will be using the system.
  • Training costs: The cost of training end users on how to use the ERP system.

By carefully managing these costs and minimizing unnecessary expenses, organizations can keep implementation costs under control.

Implementation time can also vary depending on the level of customization required for the ERP system. Customization may be necessary to ensure that the ERP system meets the specific needs of the organization, but it can also add time and cost to the implementation process. To minimize customization, organizations should consider using standard processes and workflows that are built into the ERP system.

Monitoring implementation time and cost is important to ensure that the ERP system provides value to the organization and does not become a burden on its resources. By carefully planning and managing the implementation process, organizations can minimize the time and cost required to implement an ERP system while still achieving their desired outcomes.

Posted in ERP, Implementation, Upgrade

About Rich Duncan

Rich rock-starred his way through large corporations working for the likes of IBM and American Express. Starting out as a "simple" IT Desktop Support Technician he manuvered his way through the scenery learning role after role and eventually felt stuck as a Lead Programmer. Finding that unfulfilling he set out to become an entrepreneur and after building a successful worldwide brand he crossed back over into the professional world as an ERP and WMS consultant.