Most of the business organizations overlook the hidden costs of ERP implementation or underestimate it and ultimately land into disastrous situations. The multiple benefits of ERP implementation to improve work efficiency and profit margins of any business organization are much talked about often bypassing the hidden costs of implementation. ERP costs during and after implementation often surpass the estimated amount by a higher percentage unless there is meticulous planning and calculation beforehand. In order to achieve a high ROI, the total cost of ownership (TCO) must be checked through intelligent planning and anticipation.
Vital hidden costs of ERP
Cost of training: For successful ERP implementation, a core project team has to be defined and proper training imparted to the members to get acquainted with the new working system. Most of the organizations do a blunder in underestimating the training expenses. Apart from training, individual members of the team may require some expert advice while testing the ERP and decision making. This also adds to the hidden cost of ERP.
Integration and testing of ERP: The costs involved in integrating the different ERP modules and subsequent testing seem to be a never ending process that constantly raises the TCO. The integration and linkage between different modules has to be carried on the basis of different testing and case studies, which is a recurring cost often underestimated.
Customization of ERP: Customization of ERP is often necessary during implementation to streamline the business processes and this constitutes a huge chunk of the hidden costs of ERP. It is quite tough to estimate the customization expenses, and the running cost turns into a nightmare in many business organizations. Cost of the add-on applications and tools vary depending upon the business requirements.
Conversion of data: Conversion of corporate data followed by development of the interface and ensuring proper data transfer to new systems is another hidden expense, often not considered seriously. This process is time consuming and delays the regular work schedule.
Data Analysis: One should include the cost of a data warehouse while implementing ERP, as the need may arise for data analysis of the existing ERP system along with the external systems.
Replacement of workforce: This is another hidden cost of ERP implementation and should be included in the TCO. In order to optimize this cost, involvement of top ranked managers is necessary for important decision making to achieve the set targets of business. It becomes mandatory to deploy the best and intelligent workforce for better work performance, which can be costly.
Withdrawal of ERP implementation team: Implementing ERP system is not as simple as any other software and an organization should not think of withdrawing the team even after full implementation. Maintaining the team for a prolonged and indefinite time should be considered as another hidden cost.
Return on Investment (ROI): One should not expect immediate return on investment after implementing ERP system. On the contrary, ERP benefits can be realized only after intelligent usage of the software system after 1-2 years.
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Vital hidden costs of ERP
Cost of training: For successful ERP implementation, a core project team has to be defined and proper training imparted to the members to get acquainted with the new working system. Most of the organizations do a blunder in underestimating the training expenses. Apart from training, individual members of the team may require some expert advice while testing the ERP and decision making. This also adds to the hidden cost of ERP.
Integration and testing of ERP: The costs involved in integrating the different ERP modules and subsequent testing seem to be a never ending process that constantly raises the TCO. The integration and linkage between different modules has to be carried on the basis of different testing and case studies, which is a recurring cost often underestimated.
Customization of ERP: Customization of ERP is often necessary during implementation to streamline the business processes and this constitutes a huge chunk of the hidden costs of ERP. It is quite tough to estimate the customization expenses, and the running cost turns into a nightmare in many business organizations. Cost of the add-on applications and tools vary depending upon the business requirements.
Conversion of data: Conversion of corporate data followed by development of the interface and ensuring proper data transfer to new systems is another hidden expense, often not considered seriously. This process is time consuming and delays the regular work schedule.
Data Analysis: One should include the cost of a data warehouse while implementing ERP, as the need may arise for data analysis of the existing ERP system along with the external systems.
Replacement of workforce: This is another hidden cost of ERP implementation and should be included in the TCO. In order to optimize this cost, involvement of top ranked managers is necessary for important decision making to achieve the set targets of business. It becomes mandatory to deploy the best and intelligent workforce for better work performance, which can be costly.
Withdrawal of ERP implementation team: Implementing ERP system is not as simple as any other software and an organization should not think of withdrawing the team even after full implementation. Maintaining the team for a prolonged and indefinite time should be considered as another hidden cost.
Return on Investment (ROI): One should not expect immediate return on investment after implementing ERP system. On the contrary, ERP benefits can be realized only after intelligent usage of the software system after 1-2 years.
Links:
how to recover samsung files is a effective recovery equipment for undelete deleted data, formatted files, lost images and videos of Samsung mobile phones as well as other cell phone class, which is being regarded as one of the most helpful mobile phone restore device. With the support of samsung data recovery, your accidentally lost data and other important files can be found back easily.
With winbook drivers you can hold your notebook function availably with high-grade system driver omit, which even erase those files,registry entries that are left behind by the normal vendor uninstallers. winbook drivers update present an plain to apply and high-level Windows device manager that allows you to enable, disable or restart any hardware device. It is even possible to unload, backup or restore the drivers of these devices. And it can support almost all winbook appliance as well as other brands of device.
cf card recovery is a specialized memory card recovery tool for recover missing data, photos, audio and video folders from CF card and other memory card. With the help of cf card, it is unnecessary to worry about any lost, deleted or formatted data and files. recovering photos on cf card is very easy and safe to manage that applies to all level computer users and can prevent your computer from further damage or data loss. recovering photos on cf card supports nearly all Windows OS, card types and famous digital brands of cameras in the market.
Buy Cheap Brother Toner Cartridge
Penny auction software
Blackberry development
Writing Good Blogs - free article courtesy of ArticleCity.com
Mining Tips To Help You Conquer World Of Warcraft