ERP implementations are not known to be the cheapest things an organization can invest in to improve their business. That being said, enterprise software is considered to be an essential asset for manufacturers, distributors, and other business leaders. Businesses without effective ERP systems tend to struggle with accurate data, while their business processes tend to be more inefficient and ineffective.
So, what should you do when you’re looking to do an ERP implementation? Is there a way to minimize your ERP implementation costs to better handle the overall project?
This article answers some of these questions and provides some general tips for you to save a bit of money when you’re considering an ERP implementation to speed up your business processes. These tips can also help you craft a plan of how to avoid ERP failure along the way.
Be careful with costly ERP implementation add-ons
Sometimes when a company is customizing their ERP software, they forget about what they wanted the software for and add on too many random options to enhance the software. Chances are, you don’t need every module available or all the customized parts that can come with your software.
Being aware of what your company needs and what it doesn’t need can save you a lot of money down the road. Simplify your ERP implementation by focusing on the essential components. By doing this you can avoid delays, errors, and shooting over your budget.
Explore your ERP implementation options
When you know you want ERP software for your company it’s important that your team takes time to look around the market for all the options that it can offer. Vetting prices, quality, and vendors will help your organization a lot when it comes to handling these projects.
You should be looking for an experienced ERP vendor who will give you solutions to your business needs. You will be able to tell if you have a good vendor if they talk you through everything, educate you on expectations, and are there for you whenever you have a question. Many times, a company rushes into an implementation project without first vetting things through and ends up throwing money out the window as a result.
Focus on ROI in your ERP implementation
When you’re going through the implementation process there should be an established plan for the worst, and best case, scenario for ERP spending. Calculate your ROI (return on investment) before you start the project and look at the long-term impacts of your decisions and how they will affect your organization. This should be a key component of your ERP business case.
Ironically, it’s sometimes the most budget-conscious companies that tend to pay the highest price for their ERP software because they cut corners and didn’t consider longer-term goals. (See our article about how misalignment is the secret killer of digital transformations). You can choose a cheap system and not have any customized parts on it, but it may cost you more later down the road to install these parts and also fix any errors that you may run into.
Define the ERP implementation that works best for you
At the end of the day it’s not just about picking the cheapest option for your organization but picking the option that works for your business instead of against it. The biggest risk taken by any business is to undergo an ERP implementation without seeking the help of independent and technology-agnostic ERP consultants.
We at Third Stage Consulting are here to help you navigate the landscape that is ERP implementation and we are dedicated to providing your company with the help you need. Never hesitate to contact us for questions regarding pricing and other matters related to implementation. We’re always here to help your organization achieve its goals.