More often than not, we see businesses not eager to use its budget on technology because they’re intimidated by the price point. However, investing in innovative software helps improve operational and organizational processes.
It also helps with the collection and organization of data points within the business and is beneficial in several ways. Not only does it eliminate manual error, but it improves production, management and the speed of decision-making processes.
This software is called ERP better known as enterprise resource planning software. While it may feel like a large one-off expense, rapid business growth will quickly make up for it.
Now that you know some ERP benefits, it’s important to consider the factors that influence how much it’s going to cost for your business.
Let’s take a look at some pointers below.
Number of Users
Generally speaking, your company’s size usually indicates the number of users you’ll have interacting with the software. SMEs will usually require fewer licences for this reason. Furthermore, these smaller companies may not require all applications provided by certain ERP systems. Alternatively, bigger sized corporations may require additional applications to accommodate their unique needs.
Most ERP’s are easy to set-up and use, however the ease of set up will depend on the complexity of the business needs as well as the skills of the team involved.
As a business you have two options when it comes to installation and set up.
A) DIY Option:This option is for
- Small businesses,
- With basic or very streamlined operations,
- With owners or staff ready to dedicate the time to understand the system
B) Full Implementation: This option is for companies who
- Are in specialised areas
- Have specific customisation requirements
- Have potentially 10 or more users of the system
When you decide to integrate an ERP system, you’ll be presented with two options – an on-premise system or a cloud-based system. Cloud-based systems are charged on an annual basis, totalling about 20-30 per cent of an on-site continuous license fee. This may include extra maintenance fees, or they could be included, depending on the chosen vendor. On-site systems will charge an annual fee for maintenance and support of about 10-20% of the original licensing fee.
With the global pivot to remote work, there is an increasing demand for cloud based ERP’s. It is also beneficial for SMEs in Nigeria to implement cloud-based software due to the lower initial fee. Bigger corporations may have more budget to spend on an on-site system. However, both options are attractive and bring improved organisation and business function to any sized company. To get started with implementing an ERP system for your business or to ask any questions, please contact us here.