- May 4, 2020
- Posted by: Santanu Das
- Category: ERP Software Selection
A step by step guide for selecting the right ERP / CRM
If you are reading this blog for selecting the right ERP / CRM Software, chances that you are in the market for a whole of business management solution to support future growth of your organization. As we have implemented many ERP software over the years, We have a good experience to share with you the points to be considered.
- Defining requirements and budget
- Researching ERP options on the Cloud platform
- Choosing between On-Premise or Cloud
- Compare and Shortlisting ERP Vendors
- Getting budgetary estimates
- ERP / CRM demo presentations
Measuring ERP Return on Investment (ROI)
The most important part for implementing an ERP / CRM solution is how it will help the Return on Investment (ROI)?
With many prospective on how to calculate the Return on Investment of an ERP solution, we should share our view on the topic.
For many years we have been involved in implementing ERP of different Industries. A common question we are often asked is;
how do an organization ensure that they get the ERP Return on Investment and how do they measure it? For selecting an ERP it is very important to calculate the Return on Investment.
The two main components to the ERP Return on Investment calculation
- Required investment – The ERP / CRM Cost (development + implementation)
- Operational cost savings and efficiencies – After successfully implementation.
Let’s start by considering the required investment.
How to calculate the investment required to implement an ERP system
There are many components that make up the total investment idea for an ERP project.
When considering ERP Return on Investment, we suggest that you consider a three years budget that covers the initial investment and the total cost of ownership.
Software – one off investment in a perpetual license or monthly SAAS or monthly cloud fees.
Annual maintenance and support – annual costs for support.
There are multiple different methodologies that can be used to implement an ERP solution. Whichever methodology you use you will want to work to an implementation budget.
This ERP implementation budget will include at least the following:
- Project Management Scope of Works / System Blueprint Scope of Works documentation;
- System configuration;
- Forms set-up;
- Reporting configuration;
- User training;
- Admin / HOD training;
- Data conversion – test and live Integration / development;
- User acceptance testing;
- Go live;
- Post go live support;
As with many other investment factors when implementing ERP, the investment associated with server, back-up, internet and associated infrastructure will vary depending on your choice of on premise vs cloud.
If you choose a cloud based ERP solution you will need to check what’s included. Also check if your current Internet speeds and plan will be suitable for a cloud deployment.
Internal staff investment – When implementing an ERP solution there will be time required from internal team members.
Think of the time required from your internal team members for:
- User acceptance testing;
- Preparation of data from legacy solutions;
- Attending user training;
- Attending project meetings;
- Admin / HOD training;
- Data conversion – test and live Integration / development;
- User acceptance testing;
- Go live;
- Post go live support;
As with many other investment factors when implementing ERP, the investment associated with server, back-up, internet and associated infrastructure will vary depending on your choice of on premise vs cloud.
If you choose a cloud based ERP solution you will need to check what’s included. Also check if your current Internet speeds and plan will be suitable for a cloud deployment.
Internal staff investment – When implementing an ERP solution there will be time required from internal team members.
Think of the time required from your internal team members for:
- User acceptance testing;
- Preparation of data from legacy solutions;
- Attending user training;
- Attending project meetings;
- Admin / HOD training;
- Data conversion – test and live Integration / development;
- User acceptance testing;
- Go live;
- Post go live support;
As with many other investment factors when implementing ERP, the investment associated with server, back-up, internet and associated infrastructure will vary depending on your choice of on premise vs cloud.
If you choose a cloud based ERP solution you will need to check what’s included. Also check if your current Internet speeds and plan will be suitable for a cloud deployment.
Internal staff investment – When implementing an ERP solution there will be time required from internal team members.
Think of the time required from your internal team members for:
- User acceptance testing;
- Preparation of data from legacy solutions;
- Attending user training;
- Attending project meetings;
- Admin / HOD training;
- Data conversion – test and live Integration / development;
- User acceptance testing;
- Go live;
- Post go live support;
As with many other investment factors when implementing ERP, the investment associated with server, back-up, internet and associated infrastructure will vary depending on your choice of on premise vs cloud.
If you choose a cloud based ERP solution you will need to check what’s included. Also check if your current Internet speeds and plan will be suitable for a cloud deployment.
Internal staff investment – When implementing an ERP solution there will be time required from internal team members.
Think of the time required from your internal team members for:
- User acceptance testing;
- Preparation of data from legacy solutions;
- Attending user training;
- Attending project meetings;