Typical ERP implementation costs constitutes of the planning, organizing, prototyping as well as installing the software. There also additional costs like system configuration as well as conversion costs that are related to implementation. A typical implementation cost ratio is suggested to be 0.75:1 to 1:1 which has been proven to promote achievement of company goals. On the other hand, ratios of 1.5:1 or 2:1 appear not to be common for customized ERP implementation.
Indeed, implementing ERP Full Form software in a small or mid-size company would cost approximately $150,000 to $750,000. Eventually, a viable investment with a well implemented ERP system pays back itself within a short period of time. However, the cost can be reduced by incorporating internal managers to support implementation of the ERP software.
ERP implementation costs are considerable since the user has the opportunity to influence the expense. It is good to make the right decision when choosing an expert to implement the ERP software in the organization. Some dealers of ERP software tend to have trusted resources while others connect the user to 3rd party consultants who can provide the service.
Before hiring a professional to conduct implementation of ERP in a business, it is advisable to have a dialogue with the person in order to share some information regarding the business processes. Exchange of information also enables the user to rate the expert’s knowledge and determine whether the ERP software matches the organization culture.