ERP Total Cost of Ownership

This articles were published in the CAmagazine regarding ERP Costs. The 1st one is based on customer surveys. The 2nd one is based on our experience. The full articles are available by hyperlink from the heading.

What does an ERP system cost?

Buying an ERP system is a lot like buying a house. The process brings all kinds of unexpected costs. When I moved into my first home, we couldn’t get the bed up the stairs, so we had to remove part of the ceiling, which ruined the fresh paint. Then the plumbing failed and most of the pipes had to be replaced. If only we had known.

When it comes to ERP, companies spend plenty of time haggling over the purchase price but don’t nail down the other costs — maintenance and support, implementing the system, up-grades and the people involved internally in implementing the new system...

Estimating ERP Costs

...The licence is relatively easy to estimate based on the number of users, but implementation fees are harder to pin down. In their quotes, vendors usually calculate them as a ratio of licence fees. For a relatively straightforward implementation, the fee would be about the same as the licence cost; if customizations are expected, it could be...