What costs should you take into account when considering a new ERP package?

At SiNube, we assist companies in implementing new, modern Enterprise Resource Planning (ERP) solutions within existing organizations.

To achieve this, we have been relying on state-of-the-art Oracle software for years, which is continuously updated and improved.  We also leverage the expertise of our experienced, or dare we say, seasoned consultants.

We consider it of the utmost importance to support our clients in evaluating the possibilities and expected impacts on the business.  We always provide advice on the necessary tools and will never impose functionalities that we know will remain unused.

Embarking on a new ERP journey always involves costs for licenses, training and implementation. These are the most obvious costs, but a true cost calculation goes much further. Operating costs encompass several elements that we are happy to discuss with the client.

You are surely aware that there are also long-term costs to consider. Think of expenses for hardware for third-party applications, costs for IT personnel, user training and more.

The cost of a new ERP project is often underestimated, leading to frustrating budgetary difficulties and implementation delays afterward.

Not so with SiNube.

Together with Sales, Presales, Business Director and Project Manager, we provide a reliable estimate of the Total Cost of Ownership (TCO) of a project. This goes beyond the mere addition of license costs and costs for the implementation process by our consultants. As a result, you can accurately estimate the project cost in advance and avoid any proverbial surprises later on.

You will find that our estimation generally closely aligns with the long-term reality when comparing and evaluating different parties.

But how is SiNube able to make such an accurate estimation?

The essence of the answer lies mainly in the use of a Cloud environment, which minimizes additional costs. Furthermore, there is limited to no downtime.

This way, you don’t need to account for costs related to upgrades, extra hardware capacity, backup modalities and security, significantly reducing the investment cost.

You need to consider various cost elements and it’s important not to overlook anything. Therefore, we’ll provide a concise and schematic list of the pillars you should definitely not forget:

•    Research cost during a purchasing consideration.

•    Costs of a testing period where the new tool usually runs in parallel with the existing ERP system.

•    Software cost (known in advance).

•    Implementation cost (estimated in advance)

•    Additional infrastructure cost and installation for possible third-party applications (aside from Oracle ERP Cloud)

•    Additional personnel cost (usually underestimated, but correctly assessed and presented in a collaboration with SiNube).

•    Staff needs to invest time to get acquainted with the package, on top of their normal tasks.

•    Documenting procedures.

•    Project management, both internal and external.

•    Project sponsorship.

•    Training of key users.

•    Retraining of employees on the new tools.

•    Adjustments to the company.

•    Software upgrades by external consultants (automatic in our Cloud environment).

•    Security provisions by specialists (included in the cost of the software license).

 

Don’t jeopardize the lifecycle of your project with a wrong estimation; get in touch with SiNube when considering a new ERP project.

Feel free to explore our solutions and leave your contact details for further questions or potential interest in an exploratory conversation.

Know that we offer the highest level of service in the market due to our proximity through the well-known Cronos network and SiNube is also eager to assess your environment to examine the TCO of a new ERP environment.

We have the right tools and expertise to mitigate the majority of commonly made mistakes and resulting surprises.

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