6 Tips to Cut ERP Project Cost by Half
ERP projects are an ideal choice for any enterprise targeting growth due to high efficiency they offer to medium and large size enterprises. However, the budgets allocated for ERP projects can be challenging. It is now possible to cut the project costs by 50%! The trick is to shorten the duration in ERP project costs calculated based on "man/day" with basic level preparations within the company. The process is mainly dependent on company owner for medium and large size enterprises and especially family-run companies. Having gained profound experience throughout the years, the company founder can make fast and right decisions on purchases, stock follow-ups, authorizations and many other phases. However, when it comes to handing over the business to new generation or collaborating with mid-level executives in line with the growth targets, all processes need to be independent from any single person.
Cost calculations for ERP Project, which is planned with a new generation management approach, vary depending on the completion period of the project. At this point, the more you are prepared for the digitalization of processes, the lower the cost of ERP will be. Login ERP, Turkey's strong ERP software, recommends enterprises that want to complete this preparation phase in the best possible way to find answers to the following questions:
Are your needs and expectations crystal clear?
The success of the ERP project is closely linked to your capacity to set your expectations from this project. Cost analysis can be done more efficiently and accurately as long as your current situation, the processes you need, and the acquisitions you want to achieve are crystal clear.
Are you ready for a central decision-making mechanism?
In order to benefit from the high efficiency that ERP has to offer, you need to be prepared for a central decision-making mechanism. This means a system that depends on processes rather than people and where it can be determined which processes will be affected from each decision.
Are your product and stock data available in the digital format?
The fact that data on product trees, stocks and staff are kept on a digital archive at the basic level in the current processes facilitates the work of the ERP team tremendously. The easy project can be completed quickly and thus, the cost will be lower.
Are your processes recorded?
Processes such as procurement, discount, supply and accounting should first have a record in the company so that they can be transferred to the ERP system. If you are planning to carry out an ERP project, it would be useful to start by creating these records in the enterprise.
Do you have a project manager?
ERP projects require a comprehensive commitment where “overtime” is not adequate to resolve issues in addition to standard tasks. Appointing someone with decision-making authority in the company as the project manager will considerably accelerate the project.
Are your authorizations performed well?
It is highly important to define internal authorizations for procurement, finance and other processes for determining who will have access to which areas in the ERP system.