How to get an accurate estimate of ERP implementations costs

We ask the finalists in our ERP software selection projects for a detailed breakdown of implementation costs by module (g/l, a/r, a/p, purchasing…) and by task (customization, integration, conversion, project management, design…). We provide them with a lot of information to make the estimate possible:

• Detailed requirements
• Business process review which includes process, problems, type of problem, and impact of problem
• High level process maps
• Access to our client to get the tour and ask whatever questions are needed

The finalists are asked to demonstrate a prototype of the to-be business process allowing them to validate assumptions. But sometimes, even with all this information, the vendors still can’t nail down the costs because of the unknowns. We then ask the vendors to conduct a paid-for consulting assignment to do some of the work they would have done in the design phase to arrive at more accurate numbers prior to signing a long-term contract.