Tips to reduce ERP implementation Costs


Enterprise resource planning software is considered as one the most important system for the entire organization. There are various reasons and goals for implementing an ERP software. On the other hand the cost of ERP implementations is another pin point for an organization which motivates to take further step and this needs to be managed carefully.

Estimations of ERP Project implementation cost is not that easy – therefore a realistic project saving could be little difficult. Again further the cost of the implementation is based on the kind of industry & the way you would be implementing the software. There are many companies who have achieved maximum cost saving and many benefits with an ERP software.

Common Misconception on ERP implementations costing

From our personal experiences – we have found many clients who want to do the implementation of ERP software without really understanding the cost involved. Therefore it should be noted that ERP software is an investment for your organization which give returns slowly by increasing the efficiency and productivity of your employees and business processes.

Open source is free – Another misconception we have seen is Open source is free – Although it is free from freedom point of view and not from the costing. Open source reduce the cost of ERP implementations since there are no licensing fees & Vendor Lock in.

Difference between installation and Implementation – This is another common misconception where clients feels installation and implementation as same although both the terms are different – Installations is done via few clicks whereas implementations carries many other areas such as creating the users, hierarchy, integration, Training,  Customizations as per the business process and so on . .

Tips to reduce the cost of ERP implementation

Tip No 1

Go for Open source : If you are really looking out for low budget ERP then our first suggestion is to check your needs and requirements via Open source ERP software. Open source is growing even in mission critical organizations – the first advantage to reduce your ERP implementation cost comes when you are selecting a license free ERP software packages.

Tip No 2

Slow and steady wins the Race : Do remember ERP software implementations is not a 1 day or a month task since the implementation timelines completely depend on the modules you are looking out for – therefore proper planning and business requirement analysis with timelines can reduce the cost of implementation and will not need to do extra investments.

Tip No 3

Minimize customizations – Customization is one of the pain points of ERP implementations therefore minimize the customizations of module if not required since a single customization can disturb the other modules which you are implementing. Our suggestion is to start with plain implementation and further go for customizations as require

Tip No 4

Keep in Mind future growth – Before selecting ERP software you must keep in mind the future growth of your organization & its users the ERP software should be a long term Asset for your organization

Tip No 5

Experience Vendor Selecting Experience vendor in similar implementations helps you to reduce the timelines & thereby the costing.

Tip No 6

Support & Testing – “ERP implementations are successful when user starts using it” Therefore a strong testing team with proper support time to time is a must. Else you have developed the software and no one is using it.

About Bista Solutions :

We are the official Silver partners of OpenERP which is one of the leading open source ERP software. You can feel free to ask any queries or tips related to ERP implementations – message us using our contact form for more information

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