ERP upgrade and Real Cost

www.cybrosys.com
 INTRODUCTION

• Upgrading or installing a new Enterprise Resource Planning

(ERP) system completely can be a big task for any
company

• ERP software expensive but it can also take between

several months and one year to properly integrate into
networks and start seeing the performance advantages
that this system promises
• Initially , business process needs should be considered,

and executives and IT specialists need to determine

whether current systems are running effectively .

• If ERP upgrades can provide answers to demands then the

time for ERP investment may have arrived .

Many organizations are confused on how and when they need

to spend the money for the upgrade . We hope this will

surely help you to recognize the different aspects of the cost

associated with ERP upgrade. The important things should be

considered during ERP upgrade is listed in the coming slides.

 UPGRADING ?
• The upgrade, in itself, will carry its primary cost

• Includes the consultation fees to the consultant or partner

• The cost of the hardware and software should also be included

• Other costs that are associated with the upgrade is internal

the opportunity cost of the finance team and others,

IT personnel costs etc.

• The cost of an ERP implementation project should be expected to cover the expenses of the software,

training, subscription costs, personnel and change managements

• Sometimes you need to spend on the operational Support of ERP.

• ERP is complex you need some support to run it properly in the initial stage
 WHAT ABOUT INFRASTRUCTURE?
The Cost of infrastructure Includes the cost of any additional equipment needed for the upgrade, such

as additional servers, new computers or devices like the biometric machine, network/connectivity

upgrades, etc without proper infrastructure, it is tough to run or implement anything.

 MAINTENANCE AND SUPPORT
This includes maintenance for day-to-day operations, and any support required to keep your ERP

software and infrastructure up and running i.e, maintenance and support for small upgrades, cleaning

database, doing timely maintenance / upgrading of the system.

STATUS QUO OPPORTUNITY COST is also important to

take into concern.

 SUPPORT PROJECT COSTS

• ERP is a big project and it requires small projects to run alongside for a successful run.

• The mini projects are carried out all around the year and it can easily include the fixes, patches and
other forms of the features and functionality add-ons.

In the end, there are many ways to look at the ERP upgrade.
For example, Odoo or open ERP integration / customization
and upgrade improve costing due to free licensing and
open source nature.
It is important for companies to evaluate the market and take decisions appropriately.

The cost associated with ERP upgrade are definitely not a small amount and that is why

sufficient time should be needed to take decisions on ERP upgrade.

For more information regarding cost related to ERP upgrade,

do not forget to contact us.