Measures to tame Post Implementation Expenditure – An ERP Fact

ERP implementations are tough. By the time executives and project team members get to the end of the implementation, they are often ready to throw in the towel and end the pain, risk and disruption created by the deployment. Given the fact that most executives are simply happy to not blow their implementation budget or bring their organization to its knees during go-live, it’s no wonder that the last thing on their minds is determining actual post-implementation results.

Reports reveal that 50-percent of organizations fail to realize at least half of their expected business benefits. It’s hard enough to successfully get through an implementation, let alone to deliver an ERP system that translates into measurable business results.

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The better your ERP planning, the better your execution. The better your execution, the lower your costs, this is true for most technology efforts, and it is definitely true for keeping your ERP up to date

Many companies purchase licenses that are never used but pay maintenance fees for these never-used licenses. Pay attention to what is actually being used and insist on only paying maintenance fees for those licenses that are

Always remember that the more your ERP system has been customized (at the system code level), the harder it will be to apply technology upgrades down the road. By extension, the more you limit customizations and work within the framework of the ERP, the more you save on future upgrades

Upgrading your ERP provides an opportunity to leverage the capabilities and technology of the newest product releases. Many companies have found upgrading their ERP systems to be one of the most difficult and costly ERP maintenance-related activities they undertake. While upgrades are inevitable, doing it all on your own is not. Hiring the right upgrade specialist, to perform your Upgrade will not only make it easier, it will save you money

With growing hardware and software requirements come rising costs. Smart companies are taking advantage of cloud computing to reduce or completely eliminate their need to update their hardware and system software. When your ERP is hosted in the cloud, your ERP Hosting provider is the one responsible for making sure that all hardware and software are up-to-date. Taking advantage of cloud services allows your business to reduce costs, leverage new technology, and gain access to senior level support on demand, all in a scalable environment

One of the best ways to lower the cost of maintaining your ERP is by paying close attention to what you are paying for and ensuring you only pay for what you need. For example, when hosting your ERP in the cloud, you remove the need to pay for hardware, software and system maintenance issues altogether, instead paying a monthly flat fee while your hosting provider insures that everything works for that price. Similarly, when using a managed services provider, you pay a small, predictable monthly fee, rather than paying idle employees full-time

These are just a few tips to help your organization position itself for implementation and post-implementation success. By keeping the end-state result in mind via planned post-implementation audits, ERP project teams and executives will be in a much stronger position to deliver expected business benefits.