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• What are the expenses for using an ERP system?

Many people may think that the cost of the previous ERP system is all in the system cost and implementation cost. In fact, these two are the bulk of the cost, but in fact there are many expense items. The editor will briefly list and explain them below. A reference for enterprises that want to install or update the system.

1. Management consulting fees

Before installing the system, many companies will hire external professional management consulting companies to sort out and guide the optimization of the company's business processes, paving the way for the implementation of ERP projects. This step is not necessary, but it is very useful, and of course, the cost is not low.ERP Migration hk There are also some companies that ignore this link in order to save project costs. Personally, I think companies that need it should still do early-stage project management consulting, such as those companies with high inventories, complex and long processes, and a lot of rework and reverse business. As the saying goes, if a worker wants to do his job well, he must first sharpen his tools.

2.Hardware cost

Local deployment: If the enterprise's ERP system is deployed within the enterprise, the hardware cost is not small, such as server hardware costs. Different configurations have different prices, but the ERP system is the core of the enterprise application system, so the configuration cannot be too bad. SAP Support and also take into account the data growth needs in the next 3-5 years. If the back-end database is an in-memory database, the system also has high memory capacity requirements. The ownership of the hardware purchased under this model belongs to the enterprise and is bought out in one go. Cloud deployment: Cloud deployment of ERP can save the cost of purchasing servers locally, but cloud servers require leasing fees, and different hardware configurations have different prices. Hardware leasing fees are paid monthly or annually. If hardware resources need to be increased in the future, the leasing fees will also increase accordingly. Enterprises only have the right to use cloud servers, but not ownership. The servers are owned by the cloud vendors.

3. Implementation costs

No matter what type of ERP it is, it needs to be implemented by the implementing company before it can be used online, which means that there are implementation fees for ERP projects. Different software companies have different implementation costs for different ERP implementation scopes, and the differences in this area are not small. When selecting an implementation company, enterprises should not only consider the implementation price, let alone bargain blindly. In order to win the order,ERP Cloud some implementation companies have to sign a contract even if they are cut to a low price. Enterprises must not be complacent because of this. You get what you pay for. If the money is not paid enough, service quality and personnel will be deducted. The quality of implementation services largely determines the success or failure of the ERP project. When the time comes, the ERP project and the enterprise will be damaged. Interests. What enterprises should stick to is the implementation budget, not the implementation price.

4.Software licensing fees

License pricing methods for different software are also different. Some are based on modules, some are purchased as a one-time purchase, and some are calculated based on the number of concurrent users. Enterprises need to scientifically purchase according to their own business needs. Of these three billing methods, I personally feel that the one-time buyout method is the most worry-free, followed by per-concurrency, and finally per-module. Don't wait until the enterprise uses it to find out that a certain module has not been purchased. This is the worst thing, which means that this module may need to be re-implemented. By the way, for the cloud deployment model, some software licenses will also introduce FUE type billing, and the logic algorithm is more complex.

5. Staff wages

Salaries for newly recruited talents in ERP projects, overtime wages, etc.

6. Project incentives

When working on an ERP project, every employee has to shed a layer of skin and often has to work overtime. After the system goes online, these key users and IT will become internal core talents. It is completely unjustifiable not to provide project incentives and salary increases! At the same time, some activities may also be held after the system goes online.

7. Year dimension

Once the system is online, it does not mean that it is finished. Subsequent technical support, patch repairs and even secondary development from the ERP manufacturer will be required. These will require a certain annual maintenance fee. Different software calculate the annual dimension in different ways, some based on the support period, some based on the number of concurrent users, some based on the number of users, etc.