The benefits of a top-notch ERP solution like Odoo are properly documented and little question as your enterprise has grown and moved past such introductory choices as Quick Books and Excel sheets, you’ve been pondering the benefits of a new system.

You will, of course, have tons of questions on performance and perhaps even customization, capabilities, third party add-ons and ROI. However, we have discovered that one of probably the most fundamental questions you will need to ask is whether or not your budget can help the price of a new or upgraded ERP solution. In different phrases, “how much will it cost?”

Well, there isn't a method around the truth that ERP implementation of an enterprise-wide built-in accounting and enterprise system requires a big investment, and even with the various variables to keep in mind, it may be useful to have a normal thought of what to anticipate.

There are some questions that may apply to most small to mid sized companies contemplating implementing an ERP solution:

What is the kind of enterprise and what number of employees plan to make use of the ERP solution?

Generally talking, a mid-sized manufacturing firm will have more complicated requirements that say an identical sized skilled companies organization. Most ERP implementation cost based on the quantity of customers and the extent of access they require. If yours is a producing or complicated distribution firm, you may anticipate to pay round $4,000 for every concurrent person. On the opposite hand, when you have an expert companies enterprise, you may pay $2,000 for every concurrent person. If you've customers who would require only restricted access to the system, further “light user” licenses might be priced at a couple of $100 each.

Also Read - How to reduce ERP Implementation Costs?

Will you require third-party software?

Third-party software products are designed to adapt the essential out-of the-box software to raised meet the needs of particular enterprise processes which may be unique to your business or preferred practices. Third-party add-ons usually account for 10% to 35% of the overall software cost.

Implementation costs

Software-to-services ratio could be as little as 1:1, but more common is a ratio of from 1:1.5 to 1:2.5. The above-mentioned components; industry, quantity of employees, unique necessities, and third party add-ons all enter into the ERP implementation cost as do volume, scope, complexity and internal resources in addition to the need for customization and training.

So, what sort of figures are we talking about?

For a typical mid-sized firm, the entire software and companies price will range between $10,000 and $100,000. Hardware and infrastructure prices are usually addressed individually, and usually these estimates assume an on-premises implementation quite than a hosted or subscription-based solution, which could significantly cut back your total costs.

We admit, it is a fairly massive ballpark for an estimate, however it might assist these simply beginning their ERP analysis to know what components affect the overall ERP implementation cost. It must also offer you a spot to start out when selecting an implementation accomplice. Beware of estimates which can be way higher or way decrease. Ask questions and make sure you understand what you might be getting to your investment dollars.

Author's Bio: 

Business solution-centric Odoo Consultant and IT professional with about 11+ years of experience spanning Odoo delivery, Sales, pre-sales, Odoo product development, Odoo business consulting, outsourcing & ADM services in leadership positions.

• Has headed Practices for Enterprise Solutions ( SAP, Baan & Odoo )

• Experience across domains likeSales and Marketing, Logistics, Manufacturing, Retail, Chemical, Automotive maped to Odoo

• Extensive experience in large program delivery & business process transformation consulting (Odoo Consultant) for multiple programs

• Demonstrated experience in designing new product & service offerings and executing global Go-To-Market strategies for new offerings for new market penetration

• Proven leadership skills with balanced focus on people, processes & technology

• Pioneered the use of ERP systems in various Processing Industry

• Worked as Process Heads of Marketing, Sales, Purchase, HR, ERP Project deliveries and also worked as Business Heads for many companies like IBM, JKT, Denave India, FCS and presently at Apagen