Cost of ERP project is not only the cost of software and implementation. It has other costs like hardware cost, training cost, data conversion cost, reengineering cost. When you are deciding a budget for ERP keep these cost factor in your mind.
Cost of ERP project goes out of the budget if you miss to calculate these costs. These costs are in percentage as follows -
* Hardware - 12%
* Software - 15%
* Training - 15%
* Data conversion - 15%
* Reengineering -43%
Major problems of implementing ERP in organizations:
* Business process reengineering (BPR)
* Resistance of both managers and staffs
* Top managers' commitment and consensus
* Users' involvement
* High cost
All these problems can handle easily, if you plan properly at the beginning of the ERP project. In planning phase think about all the cost, normally people ignore or forget training cost and data conversion cost.
Normally, total cost of ERP project goes on higher side. Rarely, it can be seen in budget, so better to keep your budget on higher side than what you have planned. Most important things to control project cost is not to make wish list to customize in the software. More customization in the first phase can increase project time endlessly, which will result software failure. In the first phase, run with vital and essential things only and start getting ROI, then in the second phase you can implement/customize your wish list.
