It’s not rare that firms underestimate the total price of an ERP implementation. Armed with their wish list, they think they’ve found the perfect system, but shocked by the total price, end up going for a system that meets their budget rather than their needs. Sounds familiar? Jonathan Chatel, Director of Business Development at JOVACO, gives you some tips to ensure you make the right choice regardless of your budget!
We’ve all made a lower-quality purchase in hopes of saving a few bucks. Take for example a cheap pair of shoes. They hurt your feet every time you wear them, and so you end up getting rid of them. The end result: your shoes end up at the Value Village and you have to buy a new pair!
This is often what I witness with our potential clients. For example, JOVACO’s solution replaces several systems and automates the entirety of operations. This is why it’s more expensive than other non-integrated solutions that meet one specific need. However, growing businesses have to consider not only their current needs, but their future needs as well.
Compare apples with apples
First of all, it’s important to learn more about the prices and capabilities of the systems you’re considering, the associated services and the length of the implementation project. This is to make sure you’re comparing apples with apples. To make sure the offer is similar, here are a few questions you can ask any potential partner:
- What is included in the implementation in terms of functionality?
- If the partner claims a certain integration is possible, what would be the approximate costs?
- What is included in terms of services (for example, the long-term maintenance or optimization of the system)?
This will help you have a better idea of the partner’s involvement. For more ideas, read our eBook 9 Questions Nobody Asks Their ERP Partner… But Should.
Reduce the project costs
There are also several ways to reduce the costs of your ERP implementation project. Your implementation partner should be able to advise you as to the best ways to respect your budget, but in the meantime, here are a few ideas:
- Identify your actual needs, your priorities, and your nice-to-haves. This will help you obtain more accurate price estimates and eliminate the features that may not be necessary.
- Break down the project into phases. This will help you spread your costs over a longer period of time while also benefitting from the features you need quickly.
- Determine whether everything has to be automated immediately, or if some automations can be pushed back to later. This will help reduce your development costs.
Think long term!
Lastly, don’t underestimate change management and the costs of your employees throughout the implementation of your ERP system. This is not something you want to repeat often, so it’s important to see it as an investment and not just an expense. To make sure you don’t forget anything, read our eBook Choosing a Management Information System: An Evaluation Checklist. Moreover, financial aid and tax credits are available to Quebec firms for the implementation of ERP and CRM systems.
In conclusion, I’m leaving you with this quote from interior decorator Miles Redd:
Buy the best, and you’ll only cry once.
