ERP implementation costs go beyond the implementation fee.
In this video, Alex Miles outlines three key cost areas to consider: internal team effort, infrastructure requirements, and external support.
Understanding these elements early helps avoid budget gaps and sets more realistic expectations for your project.
Transcript:
Hi everyone, Alex Miles, partner at 180 Systems.
Today we’re going to be talking about three key cost elements that you need to be considering as part of your ERP implementation.
The first item is your internal costs. How much is it going to cost your team internally to spend their time working on the ERP implementation?
Internal Cost = Number of Resources × Blended Hourly Rate × % Allocation × Project Duration (months)
We typically calculate this by taking the number of people that are going to be assigned to the project.
We take a blended company rate per hour and we multiply by the percent of time we have them estimated to spend on the project for x number of months based on the project duration.
The second item are your infrastructure costs. Scanners or handhelds, desktops or tablets, label printers, paper printers, USB scanners, all these elements that are going to be required as part of using the new system on a day-to-day basis.
And the third one are any external hires. If you’re hiring an external project manager, if you need external support for data migration or business analysis, this is the last item should be considered, of course, in addition to your implementer’s overall implementation cost.
Thanks, everyone.