“Show me the money”

Once the project manager is selected, many companies tie their hands by under-funding their efforts or by limiting the scope through impractical project schedules. It has been my rule of thumb that an implementation budget should be a one-to-two-times multiple of the list price of the software package. Budgets are variable based on the size of the organization and the package selected. Variations can occur as a result of the amount of outside consulting required and the geographical diversification of the company.

 

The most significant cost of the ERP implementation is not the software, but the cost of the implementation. Budget accordingly.

 

About the author:

Stephen Chen is a CPA, an executive-level Sage ERP consultant with more than 25 years of information systems and technology management experience in manufacturing, distribution, finance, planning, and process improvement. He has been responsible for the implementation of IT solutions in both domestic and multi-national companies, with emphasis on technology infrastructure, integration of enterprise-wide business solutions, and applications development.