ERP Cost Estimates

Buyer beware when estimating the costs of an ERP implementation. There are so many unknowns that make it really tough to avoid unpleasant surprises. The vendors are very reluctant to fix price anything when it comes to the services required because of the many unknowns – scope of work, who does what, capabilities and available time of buyer resources…. It’s especially difficult for the vendors in the early stages of the selection process. At the same time, the buyers want to have a decent ball park of costs before pursuing a potential solution. But there are guidelines that will help. […]

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Technology Investment Survey

June 1, 2015 from CPA Magazine and written by Michael Burns – “Making a business case for technology investments is challenging – and potentially career limiting. Anything you can learn from our peers’ experience in making these investments can be helpful in crafting a case. \ That is why we decided to run our own IT satisfaction survey in CPA Magazine. It ran from January to April 2015, and is available at cpacanada.ca/ITsurvey15. QUESTIONS The survey included a few questions about investments in enterprise resource planning (ERP), customer relationship management (CRM) and business intelligence (BI). We chose these products mainly […]

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Maximizing enterprise resource planning ROI: A guide for mid size companies

April 2010 from IBM – “To determine the ROI, calculate the total costs of your solution by including components such as software, hardware, upgrades, support, maintenance, training, customization, implementation services and more. Compare those costs with the tangible benefits the investment will provide and you will have your ROI. Tangible benefits could be in the form of process improvements enforced by the ERP that have helped your company improve its efficiency, or a rise in revenues or profits because you were able to identify new opportunities.” Read more 180 View – We recently received a link to this article so […]

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Technology hype vs. reality: How to tell the difference

August 13, 2012 from Computerworld – “There’s one thing everyone working in enterprise IT agrees about: Technology for its own sake is bad. Every new product you adopt has to bring a business value to your organization, either by reducing costs or otherwise improving the bottom line. Sounds great, in principle. In practice, every technology vendor has a detailed explanation of how each of its products will help your company. It’s up to you to figure out which ones really will. Here are five questions that can help, courtesy of Rebecca Wettemann, vice president at Nucleus Research, which specializes in […]

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7 Steps to Building a Business Case for ERP

October 13, 2011 from Supply Chain Management Review – “To create a business case for an ERP investment and select the right ERP option, organizations should follow a 7-step process: Describe the business challenge Assess the potential benefits of the ERP investment Assess the potential costs of each ERP option Assess risks and issues that might arise during the implementation Recommend the preferred solution Describe the implementation approach Measure potential and actual ROI…” Read more 180 View – The article gives examples of challenges, benefits, costs and risks associated with ERP.  However anyone following the advice given is likely to […]

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Avoiding project death by ROI

February 6, 2011 from The Enterprise System Spectator – “…My hypothesis is that, due to a reluctance to say “no” directly, ROI calculations are often a convenient way to refuse projects that management simply doesn’t want to do. This “ROI trap” can take several forms: Management argues the project budget is underestimated Management argues the benefits are overly optimistic Management argues the benefits cannot be connected to the proposed initiative…” Read more 180 View – We disagree. The so-called traps are in fact exactly the questions management should be asking. Often the people who are driving the project want it […]

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