ERP software pricing models and implementation costs have changed over the last few years. So has the technology. If you are looking to implement a new ERP system, here are a few things you should be aware of.
Installed and hosted vs. SaaS pricing
Installed solutions are either hosted on your IT hardware on-premise or using another hosting service. Pricing for such solutions is generally higher upfront but has a much lower annual licencing and update fee. In comparison, SaaS software uses a flat licencing fee that includes in-the-cloud secure hosting. The entry-level investment for SaaS ERP is lower, and you don't need to pay for internal IT technology and support; however, you will pay more for licensing over the long term. The benefit of SaaS is that even though you commit to locking in on implementation and training, in the short term, costs are lower.
Any ERP software price should factor in implementation costs. Why? It generally costs 5 times as much to implement ERP software as it does for the licensing; however, even that can vary dramatically. An experienced team like Star Business Solutions can lock in a more accurate and better ERP software implementation cost because they have more experience and more efficient implementation processes. This helps keep ERP budgets on track and reduces the time it takes to implement your software while limiting business interruption.
Training costs need to be factored into your ERP pricing. The fastest way to get your people working at peak performance and the best way to improve user acceptance is with effective training. Ensure your training cost includes training every person in your organisation who will interact with your new ERP solution and training support.
Ongoing licence fees and maintenance
Your new ERP software and your team will need ongoing support. If not, systems and data fall into a state of entropy. You also want your team to be informed enough to take advantage of the technological innovations that are always happening with ERP software. Make sure your ERP price includes licence fees and maintenance.
Customisation and software integration
Out-of-the-box your new ERP software may not be exactly what your business needs. You may need industry-based solutions or customisation to fit your busines model. You may even need to integrate with existing or new third party software solutions. Your ERP price should factor in all of these options, as well as have a pathway to change your software to meet future opportunities and challenges.
Budgeting for new ERP software
The latest generation of mid-sized business ERP software is transforming business and opening up opportunities for growth unlike ever before. The biggest challenge to accessing this growth is the lack of understanding of what's involved in implementing new ERP software. The temptation for many companies is to come up with their own budget and try to make it fit a solution. This is a dangerous approach that leads to substandard solutions that never deliver on their promise and massive cost overruns. The best place to start is with an ERP software calculator that provides you with a better understanding of the software and implementation costs for a business of your size and structure.
Star provides two separate calculators. One is for an on-premise or hosted solution, and the other is a cloud-based solution. Each calculator will deliver you a report that gives you a realistic understanding of your budget for an ERP solution that meets your current and future business needs.