Just as individual as buying a Car ERP costs
depend on
various Factors

The Cost of an ERP System: as individual as buying a Car

How much your new dream car will cost in the end is not something you can usually find in a catalog. The individual price is made up of costs for the purchase, insurance, taxes, maintenance and depreciation. Factors such as the car features, the type or even the region in which you keep the car are also important.

The situation is similar with your ERP system: Here too, the total costs depend on numerous factors. These include the number of users, the need for customization, training, maintenance and, last but not least, the function scope of the solution. You can distinguish between internal and external costs.

Even before the Project starts: this is how internal Costs arise

Internal costs are often hidden costs arising even before you have decided on a specific ERP solution and started with the ERP implementation.

You need personnel support for the decision-making process and these employees then have to withdraw from day-to-day business. The whole thing leads to costs due to the time expenditure - as we all know, time is also money 😉.

In addition to costs for training and data migration, there are also costs for reorganization or change management in the further course of the project.

External Costs incurred by the Software and the Software Vendor

External costs are costs that the software itself causes as well as costs that the vendor charges you. With these costs you have more concrete reference points and are able to calculate more precisely. Some examples of external costs:

• Costs for licenses
• Costs for hardware
• Costs for consulting and services

Hidden Costs for On-premises ERP Systems

The costs of on-premises ERP systems are often significantly higher than generally assumed. This is because some cost factors are often underestimated or not even taken into account in the calculation. To make a meaningful cost comparison with a cloud ERP system, you should identify and include these hidden costs. A SaaS-based system may be more profitable?!