Upgrading or installing a new Enterprise
Resource Planning ( ERP ) system completely can be a big task for any company .
Not only is ERP software expensive but it can also
take between several months and one year to properly integrate into networks
and start seeing the performance advantages that this system promises ; anyway ,
the tremendous benefits that the technology provides makes going through this
process worthwhile for many business .
Initially , business process needs should be
considered, and executives and IT specialists need to determine whether current
systems are running effectively . If ERP upgrades can provide answers to
demands then the time for ERP investment may have arrived .
Whenever any business looks for any upgrade, their first
attention is the cost that they need to spend for the upgrade . ERP upgrade
also has the same story , but ERP upgrades have some points which help to make
them unique . different . They are not a one time investment , but an
investment where the business has to spend for an elongated period .
Today , we will go forward and try to discover the
critical question of how to calculate the true cost of an ERP upgrade . Many organizations
are confused on how and when they need to spend the money for the upgrade . We
hope this will surely help you to recognize the different aspects of the cost
associated with ERP upgrade . The important things should be considered during
ERP upgrade is listed below.. .
1 . Upgrading ?
The upgrade , in itself , will carry its primary cost . It
includes the consultation fees to the consultant or partner . The cost of the
hardware and software should also be included within this . Other costs that
are associated with the upgrade is internal the opportunity cost of the finance
team and others, IT personnel costs etc . In short , the cost of an ERP
implementation project should be expected to cover the expenses of the software
, training , subscription costs , personnel and change managements. .,etc Sometimes you need to
spend on the operational Support of ERP . ( it depends on the policy of the
consultant ) .
2 . What about the Infrastructure ?
The Cost of infrastructure Includes the
cost of any additional equipment needed for the upgrade , such as additional
servers, new computers or devices like the biometric machine , network / connectivity
upgrades , etc without proper infrastructure , it is tough to run or
implement anything .
3 . Maintenance and Support :
This includes maintenance for day – to -
day operations , and any support required to keep your ERP software and
infrastructure up and running .ie, maintenance and support for small
upgrades , cleaning database , doing timely maintenance / upgrading of the
In the end , there are many ways to look
at the ERP upgrade . For example , Odoo
or open ERP integration / customization and upgrade improve costing
due to free licensing and open source nature .
4 . Status quo opportunity cost
5 . Support project costs :
ERP is a big project and it requires small
projects to run alongside for a successful run . The mini projects are carried
out all around the year and it can easily include the fixes , patches and other
forms of the features and functionality add – ons .
It is important for companies to evaluate the
market and take decisions appropriately . The cost associated with ERP upgrade
are definitely not a small amount and that is why sufficient time should be
needed to take decisions on ERP upgrade .
For more information regarding cost related to
ERP upgrade , do not forget to contact