MYOB ERP Solutions

What Costs Are Involved in Implementing an ERP System?

An Enterprise Resource Planning (ERP) solution can be one of the most effective investments that a company can make to enhance efficiency, profitability, and long-term sustainability. However, it is also often one of the most difficult decisions to make, due to the initial effort it takes to implement the software and train staff, as well as the costs involved.

When purchasing an ERP system, there are a number of expenses that have to be taken into consideration beyond just the software. In fact, it is estimated that the actual ERP software only accounts for about 30 percent of the overall expense.

The Size, Scope, and Customisation of the Software

The cost of the actual software will vary based on how dynamic the system needs to be. The more applications that are required and the greater the level of customisation, the more expensive the software. Generally, larger organisations will pay much more than small and mid-sized businesses because they will have to implement a large, highly specialised ERP software solution.

Hardware – If Your ERP System Is Deployed On-Premise or Cloud-Based

Hardware can take up another 20 percent of the total cost of an ERP system. For small and mid-sized businesses that may not have enough resources to invest in upfront ERP costs, it may make more financial sense to opt for a cloud-based deployment, which involves a software as a service (SaaS) payment model. With a subscription-based ERP solution, no hardware expenses are required, as all the servers and other hardware are housed by the vendor. Also, the maintenance and support costs are generally rolled into the monthly fee. However, cloud-based ERPs are often much ‘lighter’ packages than onsite, so if it’s data-heavy information you’ll need to track, on-site may be a better option or your business.

Licenses

The more licenses your company requires, the higher your overall ERP costs will be. This is another reason why larger businesses have much larger software expenses. To save on licenses, keep in mind that you don’t need a license for every potential user. You’ll only need to acquire enough for the maximum number of concurrent users.

Implementation Costs

Whether you are getting your first ERP solution or replacing a legacy system, this is where the bulk of your ERP expenses will go – as much as half of your upfront expenses. Implementation costs cover the following:

• Overall planning and organising of the project
• Prototyping functional areas of the business
• Installing the software and system configuration
• Implementing process changes
• Completing conversions

Who you choose to take care of your implementation process is going to impact the overall cost. Some ERP vendors will offer implementation services, while others won’t, which means your company could be working with a third-party vendor like an IT provider.

Implementation also includes training costs, an essential area for having a successful implementation process. Research shows that companies who invest heavily in training their staff are more likely to have a successful ERP implementation process. Setting aside less than 13 percent of the overall ERP implementation budget for training is linked to an increased likelihood of going over budget and exceeding project time frames.

One way that businesses can cut these costs is by being as involved in the process as possible. Having an internal project manager from your own staff, as well as a core team that works directly with the ERP vendor, will help the process go more smoothly and will help to prevent the project from going over budget.

To save on training costs, consider preparing several members of your staff to train the rest of your employees. It helps to have several IT professionals or other employees on your team who know your ERP system like the back of their hand. They can not only train others, but they may also be able to help when other staff members run into questions.

So is an ERP System Worth the Investment?

The benefits of ERP software include streamlining operations, increasing efficiency, and boosting productivity with a centralised, easy-to-use solution. Because of this, ERP solutions are generally well worth the investment – provided you invest effectively and efficiently in getting the implementation and training processes right from the start. This is the case across the board, from small businesses to enterprise level corporations. To find out how much of a Return on Investment that you may expect from your ERP system, use this tool for finding the ROI of an ERP solution based on your industry.

Learn everything you can about the ERP implementation process and choose a vendor that can answer all your software needs with one integrated, powerful software solution, and you are more likely to benefit immensely from your new system.

If you’d like to speak to our team about how the MYOB Exo or MYOB Advanced ERP systems can benefit your business, get in touch with us today!

5 Ways ERP Software Can Make Your Business Run More Efficiently

How much further could your business go if it was running more efficiently? With a streamlined workflow and many of the costly operational hiccups of day-to-day business eliminated with an Enterprise Resource Planning (ERP) software solution, you will be equipped with the right tools to unlock your organisation’s potential.

Today, many small to mid-sized businesses depend on business management software to get things done, from invoicing to accounting to stock levels to customer management. ERP brings all these solutions into one application, and therefore brings all information into one central hub. This means that an update in sales for example, will also adjust inventory, order management, and financial management. Sometimes described as the nervous system of a business, ERP software allows each area of your business to communicate, relate, and integrate all into one dynamic solution, which has the potential to improve overall operations enormously. Perhaps the greatest aspect of an ERP solution is its versatility; different add-ons can be embedded in the software to suit the specific needs of an organisation – and you can even have custom add-ons designed specifically for your business needs.

Are you considering investing in business management software (like MYOB Exo) but not sure how exactly this software will make a difference? Here are five ways that ERP software can boost efficiency – and your bottom line.

Greater Automation

With ERP sofware, it is possible to automate more workplace tasks. With all operational functions rolled into one over-arching management app, you’ll no longer have to spend time ensuring that your stock levels are sufficient in your warehouse, because inventory is automated. Lengthy and cumbersome order fulfilment paperwork can be fully automated as well, as can some facets of marketing, customer service, and accounting. This automation frees up labour hours so employees can work on more productive tasks like research and development and strategic planning.

Data Is More Visible and Readily Accessible

When all the information that you need about your business can be found through one central platform, you’ll save time looking up data files, cross-checking to ensure that data is accurate, and even searching for lost information. Everything can be found through the ERP software. Having all the data in one place also makes sophisticated forecasting possible – which can help your business form more effective business strategies with a clear picture of the numbers.

Ability to Reduce Waste Through Data Analysis

This is what really sets ERP software apart from using a series of separate business apps. With a single platform tracking your workflow, you can spot exactly where you’re losing money or wasting resources during normal operations. From poorly used warehouse space to honing in on excess production or long wait times, you’ll be able to recognise where you can make changes to help your business run more efficiently.

Better Communications, Which Means Faster Collaboration

Accounting, sales, customer service, and other departments can more easily communicate with each other because everyone is working through a central platform. When someone from sales enters data for example, the accounting department receives the same information, and in real-time. Not only does this make the flow of work between departments easier, but it also reduces the lost time and resources caused by errors, which are an inevitable by-product of using multiple apps.

More Effective Customer Service

Many businesses opt to embed a Customer Relations Management (CRM) app in their ERP solution, which can completely revolutionize the way your business interacts with customers. This will make the order management process simple, ensure more accurate inventory updates, and allow customers to keep track of their orders along the way. It also allows your organisation’s customer service team to spend their time interacting with customers, rather than doing the tasks and tracking that your ERP can do. When CRM is separate, managing the customer lifecycle becomes difficult as you would have to track data through the lifecycle from different applications, and then bring this information together in order to make a clear assessment.

Businesses with an ERP solution are operating at a great advantage. The more efficient your business is, the more you are able to excel, and grow. Get in touch with us to learn more about how MYOB EXO can improve your business’ efficiency.