When organization has decided to go for an ERP implementation, their first question is often in relation implementation cost. They are in dilemma to decide the total project cost and timeframe to implement integrated system. To clarify this uncertainty, organization should follow the specifically designed process for ERP by consultants.
Consultant gives a very good road map for ERP implementation and their cost. They recommend defining the scope of the project: typically macro processes and sample process decomposition. The other processes should estimated as follows –
Estimate staffing cost to lead the project and support every process area. Estimate convention and ERP interface development efforts. Estimate implementation timeframe - project planning and preparation, standard solution design and development, pilot running, rollout implementation, project management, training time and organized change management.
Estimate supplemental implementation cost for customization, data conversion and additional training. Estimate implementation engineer cost and apply them to the plan. Estimate travel, lodging, boarding etc. for engineer in the implementation cost. Customization should be minimum and fridge before starting the project. Usually customization increases in between the project and it is natural. Some of the things would come when you start implementation. If you have proper plan it can be reduced. More customization will cause a longer project and it cost more.
It is advisable to plan your vital and essential things in the beginning of the project. All of these estimates play an important role in deciding the ERP implementation cost. Implementation cost simply cannot be measured until the other estimates are first considered.
