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blog | February 24, 2014

3 Hidden Costs of ERP Software

ERP software initiatives are complex, multifaceted undertakings. Because of this, the budgeting process is often one of the trickiest stages of implementation. Even the best of plans are bound...

By WorkWiseSoftware

ERP software initiatives are complex, multifaceted undertakings. Because of this, the budgeting process is often one of the trickiest stages of implementation. Even the best of plans are bound to encounter a few unexpected expenses along the way. That’s why it’s best practice to do your homework and ask questions upfront.

Below are three common hidden or underestimated costs of ERP implementation.

  1. Training. A lot of companies underestimate the cost of training their employees to use the new ERP software system. Bear in mind users of your system will have to learn a new set of processes in addition to a new software interface. Additionally, don’t forget to budget beyond implementation for things like continuous optimization, ongoing training and improvement initiatives.
  2. Unanticipated Customization. While it’s most cost-effective to purchase an ERP solution right out of the box, the reality is this rarely happens. Chances are your company will have at least a few unique needs that will require some special customizations. When possible, work with your ERP vendor to anticipate any obvious customizations and then set aside a contingency fund for customizations above and beyond that.
  3. Data Conversion. Your data is not going to import itself. If you need to import company data such as customer records, vendors, inventory, materials and part numbers, you’ll have to pay for it. You’ll also need to factor in the time it will take you to clean up old or outdated data records as well as any potential overhaul to match process modifications imposed by the ERP software system.

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