Your company is growing. You’ve researched your options for a new business management solution and are working through the ERP Software selection process. As you get quotes back from vendors you’re delighted with the low cost of implementation services. But should you be?
One of the mistakes growing small-to-midsized enterprises (SMEs) sometimes make is not considering that low ERP Support services quotes often come with hidden expenses. Here’s are a few unexpected costs to keep in mind if you’re going to partner with a small and inexperienced ERP partner to save you from paying more than you bargained for.
1) Changes to the Initial Project Scope
Over the course of an ERP implementation project, changes in scope can happen. But when an ERP vendor doesn’t clearly outline the scope of the project, this can result in in substantial overhaul that will cost your business time and money. Consider that if the plan your prospective ERP partner shared with you isn’t very detailed, chances are there’s a good reason why. The ERP vendor in question, may not have a formalized methodology for ERP implementations or the necessary quality assurances in place. The consequences can be catastrophic when a business is expecting a go-live by a certain date or is timing their ERP integration of a subsidiary to meet an upcoming window of opportunity.
CloudERP’s consultants will work in partnership with you to provide a wealth of experience and knowledge, ensuring outcomes meet requirements and best practice learning is applied; from the Pre-sales stage through to implementation and post project analysis.
2) Company Track Record
Small ERP vendors may not have the experience to handle your complex business implementation. This is your business in their hands – are you confident that it’s in safe with them? Do you have any idea about the success the vendor has had with other businesses? If risk factors are not adequately managed for the project or if the company’s track record of successful implementations is spotty – the cost to your business could be substantial.
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3) Employee Training Costs
Did the vendor include training costs for your employees as part of the implementation costs? An important part of adopting new accounting software is ensuring that your employees know how to leverage the software. Look to employee training on manufacturing systems through the world-class customer support program.
4) Additional Software Maintenance Costs
Did your ERP implementation estimates include annual software maintenance costs? Top-tier ERP solutions are updated annually and will require system updates to ensure that you have access to the latest features and functionality. Is the company up-front with you about how much these costs will be?
When you chose an implementation partner like ERPNext, you can modernize your business and reduces IT admin costs by moving into the cloud and managed services model. They work with customers to find the right fit of technology solution and services tailored to fit their small business budget rather than prescribing a single one-fits-all solution.
5) Experience of Executive Sponsorship and Project Team
Does the ERP vendor have senior resources capable of ensuring a successful implementation? Do you know the credentials of the team? Are they a senior enough resource to manage the project? If not, how might this affect the implementation project’s timelines and add length to the tight timeframe the vendor is projecting that the implementation will take?
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