Professional Documents
Culture Documents
Session 03
Session 03
Pre-implementation/Feasibility
Kedareshwaran S
ERP Implementation Lifecycle vs SDLC
• Pre-implementation (Feasibility)
• Project Preparation (Planning)
• Support
Pre-Implementation (Feasibility) Phase Activities
• Selection of package
ERP Business Case/ ROI Analysis
• ROI models fall short in their ability to accurately measure the total value of an
enterprise software investment are they are focused only on quantifiable (tangible)
measures of return.
ERP Business Case/ ROI Analysis
• The overall payback that enterprise software can offer to a company gives a more
complete analysis of return.
• This analysis takes into account both the tangible and intangible benefits of the ERP
systems.
ERP Business Case: Tangible Factors
• More competitive.
Visible Costs
• License Cost : In the traditional software license model, a company pays a certain
amount per individual license.
• Auxiliary Software Costs: These include the license fee of supporting software, such
as middleware, compilers, third-party add-on applications, and additional database
that are usually required to run the ERP applications.
Recurring Annual Costs
• Most ERP vendors make considerable profits by charging their clients roughly 10-
20% per year per license in support.
• System Integration Costs: Integration costs for ERP systems increase in proportion to
the number of external systems or applications that the systems interact with.
Additional Costs - Part of Total Cost of Ownership (TCO)
• The team that implements the ERP system in an organization achieves immense
functional and technical expertise about the whole system specific to your business.
ERP Cost Breakdown
Consulting 30
Software 25
Hardware 20
Training 10
Project team 10
Misc. 5
TOTAL 100
Parameters for ERP Selection
• Technological maturity
• Product strategy, vision & investment in innovation
• Partnerships
• Customer support
• Cost
Parameters for ERP Selection
Parameters for Consulting/Implementation Partner Selection
• The projected improvements in quantifiable terms and the time required for
showing the results
• Implementation methodology
Contract with Consulting/Implementation Partner