Business Automation and Software Blog

6 Steps for Successful ERP Implementation Budgeting

Posted by Linda Baran on Wed, Feb 14, 2024 @ 11:00 AM

Blue Ring Binder with Inscription Budget Planning on Background of Working Table with Office Supplies and Laptop. Budget Planning Business Concept on Blurred Background. 3D Render. ERP implementation budgeting

When a company introduces ERP (enterprise resource planning) to manage day-to-day operations, it's a sign the business has moved on from startup mode. The business is generally well-established, with a steady stream of customers. A successful ERP implementation project requires setting the proper budget.

ERP implementation budgeting must carefully account for changes as the project evolves. The budget should include funding for research and getting quotes, any customization needed, maintenance and support, training, and a contingency fund to pay for unexpected costs. 


ERP Implementation Budgeting Steps

Creating an ERP implementation budget is a process that business owners and managers must consider carefully. Since each company has different needs and expectations regarding cost savings and ROI (return on investment), the budget must include each item separately. 

  1. Set the software requirements for the business. 

Is the ERP software going to focus on a specific operational area of the business, such as inventory management, supply chain operations, or project management? Does the company want to add a new solution to its accounting software? Is an all-in-one ERP solution the best option?

  1. Conduct research and get quotes from different ERP software vendors.

The ERP implementation budgeting research stage involves clarifying the company's requirements and finding feasible options. Contact sellers for information about available systems that meet the company's criteria. Request quotes from the sellers on the company's "short list" of sellers under consideration.

  1. Ask sellers about the initial costs of deploying ERP software.

By this point, the company will have determined how many team members will need to access the software. Most sellers charge on a per-user basis. If the company chooses a cloud-based service, the fee will depend on the number of users who need to set up an ID and password to access the system. 

Companies that choose an on-premises ERP may also need to make significant hardware investments for hosting the software, including servers and the related infrastructure. The seller will also likely charge a set-up and configuration fee for the ERP system. The seller will also charge a fee for moving the company's data from the old to the new ERP system. 

  1. Discuss the maintenance and support the vendor will provide to the company. 

Setting up and deploying the ERP software is only part of the seller's services to the company. After-sales service is just as crucial since the ERP is vital to the company's business. Regular maintenance of the hardware (if the company chooses to host its ERP on-site) and updates should be part of the services provided by the seller. 

Before finalizing an arrangement for implementing a new ERP, the company must clarify how the seller will offer technical support. Will the company be entitled to a set number of hours monthly or annually? How can company employees access support when needed—online chat, e-mail, or by phone? During what hours is technical support available?

  1. Schedule training sessions for employees who will be using the ERP.

The company must provide adequate training for employees using the ERP. These workers need sufficient training to feel comfortable with the new software; the company may arrange for formal training sessions or self-directed training sessions with online training materials provided by the seller. In either case, an outside trainer would be on-site to conduct the training sessions or answer the employees' questions. 

  1. Set up a contingency fund for unexpected expenses.

Despite the ERP implementation team's effort, budgeting for the new software, deploying the system, training, and maintenance may have some costs over the original amount. Setting up a contingency fund for cost overruns means the company has a plan for dealing with extra expenses. The company doesn't have to try to cover them from other sources.

PositiveVision is Your Best Choice for ERP Systems Implementation and Support

PositiveVision has proudly served the needs of many organizations in Greater Chicago since 2002. We review our customers' current accounting software in conjunction with their business goals and recommend ERP software that fits their needs. We can help you set an ERP implementation budget that will help your project succeed. PositiveVision also offers training programs to ensure your team members use the system's capabilities to the most significant advantage. We also provide ongoing support to ensure that your system software is optimized.

Contact us today to arrange your complimentary consultation with one of our product experts. 

Linda Baran

Linda Baran

Linda Baran is in charge of the people side of PositiveVision. Linda’s background includes working in a variety of industries including investment, manufacturing, and information technology.

Topics: ERP implementation budgeting