At this point an ERP systems offer businesses comprehensive solutions for all business functions. However, ERP implementation can be costly and unnecessary if you are not careful. So it is easy to understand when companies ask: “How much does an ERP system cost? And how you can keep costs down when implementing ERP in your systems.
How much does an erp system cost?
In fact, if you ask how much ERP software costs, no one can give an exact number. There is no one-size-fits-all answer regarding to erp software cost. Because, the cost of an ERP depends on various factors, ranging from the size and complexity of your business to the features you need.
However, we have conducted a survey of companies that have applied ERP systems to operate their businesses. In 2020, the average cost of ERP implementation is around USD 7,200. But we find in a 2022 ERP report showed that the average budget per user for an ERP project is $9,000 -$10.000.
ERP software development cost is also influenced by the functionality you need and want in your system. We’ll find an ERP implementation can cost anything between $150,000 and $750,000 for a mid-sized business. And especially for larger businesses such as Multinational corporations, the most comprehensive ERP systems can cost millions of dollars.
Factors That Affect Cost
“How much does an erp system cost” – The answer depends on internal factors such as company size, industry, existing processes, technology, and external factors such as consultants, integrators and software vendors.
Company size
In fact, smaller businesses may only require a few weeks or months of consulting services, while larger companies may need ongoing support from a trusted partner. For example, experts, consultants or integrators to help with implementation. Besides, large companies have more employees and data, which brings a lot of information to migrate onto the new system.
Business type
An ERP system costs can vary greatly depending on the industry or business type. For example, most of companies in the manufacturing and retail sectors typically have higher implementation costs than those in the services. The difference may be due to the fact that production management, including product management, is much more complex than in the service industry.
We’ll fine that: The core features of the inventory management module include; inventory control, inventory scanning, automatic ordering, purchase orders, and automated inventory stocking. The cost of the inventory management module alone is more expensive than the service industry, which has no inventory at all.
Company process/technology
The ERP system will be created from integrating the new system with existing processes and technologies. If your technology background is very good from the start, then the cost of the ERP system will come down.
If a lot of customization is required, of course, the cost will be higher. “How much does an ERP System cost” – The prices will be lower if you can easily integrate the new system with existing technology.
How much does an erp system cost? – Historical data
Data is gold, certainly no one wants to erase all company data. How detailed would you like to get when migrating your historical data? Surely that would be a requirement for the ERP installation team. Even that is a big burden that will accrue additional costs depending on the data needed to migrate to your new system.
Personnel training costs
Service deployment cost is a major factor affecting the cost of ERP. You will pay money for consulting, customization, and user training on the new system.
On average, consulting fees can range from $100/hour to $500+ an hour depending on experience. If they are experienced consultants, they will charge higher prices than fresh graduates.
Besides, the fee is high depending on the amount of work to be done. The work is much and complicated, with many risks, you need to pay more money. Finally, training costs can range from $500 to $5000 per user.
Setting a budget for a new ERP system requires the most detailed planning and forethought along with a thorough understanding of your specific business needs and financial situation.
What is Oracle ERP? How much oracle erp system cost?
Oracle ERP is also Enterprise Resource Planning. It is a Cloud-based ERP or Software Administration (SaaS) that helps businesses scale. Oracle ERP Cloud provides connected teams solution, unified data, and real-time. This is a comprehensive business management solution with simple design, integrating many internal functions such as CRM, HRM, SCM, warehouse management, production management, etc.
This is why information is provided quickly and without interruption to help you and your company’s finances, ensuring that the best business decisions are made. With ERP delivered as a service in the cloud, your business can be fully digitally ready to operate in a modern way.
With Financial Reporting plan, you will pay $175/month. And advanced Financial Controls – $80 per user per month.
Decide which ERP pricing model suits your company best
ERP costs don’t have to be high, especially if you choose a cost-effective solution that meets your business needs. Read newspapers, surf websites to find lots of information that compare product reviews, pricing below. Read our buyer’s guide (feedback) for more help. So, when you have enough careful research and thought, you’ll find ERP applications that provide significant benefits to your business.
We will give a good quality cheap ERP system model for you to choose. It’s MonsterOdoo that provides powerful support solutions and full Odoo ERP – a cloud-based software system designed by OpenERP that helps businesses manage business operations. This is also complemented by modern business critical functions such as POS, MRP and e-commerce, helping companies handle all aspects of operations.
It is perfect for growing and established companies where owners need a smooth running machine that supports operations, customer management, finance, HR, and more.. by the fastest and most professional way.
Its inventory management features combined with quick integration with online and offline sales channels ensure that sales and inventory are always on a single page. Odoo users can also take advantage of around 300 new apps every month.
Conclude
“How much does an ERP system cost?” Are you ready for a change? Let us show you how MonsterOdoo modernizes your business
