WONDER HOW MUCH AN ERP SOFTWARE WOULD COST?
There are many considerations in knowing how much and ERP Software would cost, there’s the size of the business, business requirements and how big is the coverage of the ERP Software to the company. By knowing the these factors the decision…
Published: May 7, 2019
There are many considerations in knowing how much and ERP Software would cost, there’s the size of the business, business requirements and how big is the coverage of the ERP Software to the company.
By knowing the these factors the decision makers will have a better idea on what is expected to be the cost of an ERP Software applicable for the business. In addition, it helps the company assess whether as per estimated cost they can proceed with availing an ERP Software or not.
What are the things that the businesses in the Philippines must consider when it comes to ERP Software Costing? To give you an idea let’s list down some of the main factors on why it would cost a lot or lesser.
1. Business Nature and Users
Almost all ERP Software prices depend on the number of users that the company requires.The counting of User license will be based on concurrent users or users that will be using the system at the same time and what modules are they using, plus the restrictions.
One ERP Software costs 10,000 to 20,000 per Local User license, type of user will also have effect on pricing. Like if the user must access the system through web or mobile application.
2. Integration of other Software
Not all ERP Software available in the market has all the functions that the business might need so most of the ERP Software providers are open for integration to other applications. For example, linking to a QR Code generator for product information purpose such us item code, item name and other specs. The cost of this system may will also depend on how big the requirements, but it would cost 5-20% of the whole ERP System.
3. Implementation and Training
Most of the companies make sure that they are well-trained, and they know the ins and outs of the ERP Software that they will purchase so they request for Training and Implementation.
It can be considered that without training and implementation a company may not fully utilize the system and the system knowledge of the users may be average compared if they will learn from the experienced consultants.
Implementation in ERP Software includes Project Planning and Kickoff, Business Information Gathering, Installation, Database Setup, Modular Training and Go Live. Cost will be based on
how many sessions or training days are required based on the Software Package. Usually it would cost 20% – 30% of the overall ERP Software cost allocation.
4. Additional Training
Sometimes employees or the company’s software users resign or may be assigned to other departments that they are not so familiar with. In these cases, an additional training will be needed. It will cost higher if the company provider is based in Manila and if your company is in province because the provider will ask for OPEX.
5. Customization IN ERP SOFTWARE
Another huge chunk of Enterprise Resource Planning Software cost is the Customization because companies from different business types may have different processes and requests for ways on how to improve their process. But not all ERP Software is ready for all the requirements that’s why customization comes in.
6. Software Maintenance
Customer Care Program or System Maintenance is often taken for granted by companies who already have an ERP Software. Some think that when Implementation and Training are done properly, they would not experience any problem or if problem will arise, they would know how to fix it. But this is always not the case. So, to ensure that delays and issues won’t arise, maintenance from different service providers related to the ERP Software must be continuous.
A rough estimate of A Million to more than 5 Million would be the cost of an ERP Software. So make sure to take into consideration all the aspects in having an ERP Software.