It is often said that when you are trying to implement ERP the costs can go up to double of what you had expected originally. Once stumbles upon this realization after the entire process has been completed. There is no shadow of a doubt that you are bound to spend much more than what you had planned initially with ERP implementation especially with top-class software such as Sage 300 and SAP Business One.
However, this does not mean that you cannot stay within limits and also use the funds to implement the project successfully. There are a few things that need to be done in this regard.
For starters, you need to work closely with the various stakeholders such as the information technology department in your office as well as your software vendor. This list is also inclusive of the implementation experts. The only time you can be sure that there is no looking back is when you the scope of your project increases suddenly. You need to know how to keep the working relationship going even while saying no to requests for more money. The second thing that you can do is have a training plan that has been defined properly for the perusal of one and all.
This will come in handy for the different teams dealing with various stages of development, implementation, etc. If you lack a written plan that does not have proper objectives as such, you will obviously spend much more than what you had intended to. A majority of the sum will be spent in educating people. Without proper details people will always ask for more classes and there is very little chance that you will be able to deny them in a justifiable manner. You can also deal with this issue by regarding your budget as a financial flow that lasts for a certain period of time.
This process should cover the period from when you start the project till a couple of months after you have gone live. You should be able to set up things in such a way that you do not need to spend more than 75% of the budget even when factoring in all the known expenses. There will be plenty of work to be done – you can divide it into needs and wants. If you can cover all this in just 75% of the specified budget then it is a fabulous situation to be in. You will not need to make any hard choice as such.
In case you can use the 75% of your budget to cover all your needs but not all the wants then you may need to trim that least so as to arrive at a profitable situation. If the said amount is insufficient to cover even your needs then the scope needs to be re-evaluated and downsized and you have to make good choices regarding areas where the risk exposure can be increased. You can easily get the most-efficient and talented workers from different parts of your organization and thus make the necessary adjustments.
You can always do away with the consultants and pay more to the talented people in your company to implement ERP. The remaining 25% needs to be used in final phase – in the six weeks that immediately precede the project becoming live and then the immediately-next 6 weeks. You can always be sure of problems you had not accounted for in such situations. Then, you need to be assertive so that money can be spent as you see fit. This will help the rumors die down and make people more confident as they realize that the problems are getting solved. This is when your implementation will be successful as well.
Do contact us for more ERP related questions.