The successful implementation of ERP project will bring huge business economic and social benefits, but the resulting series of additional investment is very large and the extra investment because companies often neglected in project planning, ERP implementation with due to hidden costs. During ERP system implementation, the enterprise prior to the hidden costs if the correct evaluation of the integrity of the follow-up system and systems controllability after line will bring great help. Therefore, enterprises in ERP project planning, should be fully taken into account by the hidden costs of ERP implementation brings.
Enterprise ERP implementation has been such an experience, often underestimated or missed some cost. In fact, the implementation of ERP business breakthrough of the original budget, mainly due to the hidden costs of ERP business is not properly estimated. Usually the cost of ERP implementation costs include explicit and implicit costs of two parts, one dominant cost, including hardware, software, external professional consulting fees, internal staff wages and benefits and software installation, maintenance, upgrades and business process optimization and so on. These factors, enterprises in ERP project planning is usually considered very clearly, and for hidden costs, companies tend to be overlooked. In my opinion, brought by the ERP implementation of the hidden costs include the following 10 areas:
Underestimate the training costs
Implementation of the ERP business than all that training costs are difficult to control the budget. In general, during ERP planning, corporate leadership training costs will not be completely ignored, but often underestimate the training costs. Training costs were high because in addition to learning the software interface, almost every employee must learn a new set of business processes. To the factory loader, for example, in the ERP system, the original workers into accounting - because the staff is directly locked into the new inventory system of a living, the slightest error will immediately impact on books . Once each employee has the right to enter the system, the factory workers can not review the data as simple as before, in batches to view the data; if necessary, they must be able to identify a data entry for each source to prove its correctness.
In fact, ERP is not a lot of their technology, software, installation, operation is not difficult, but it forces you to do a lot of changes in management, the cost of this change should be included in the budget for training costs.
Integration and testing
ERP software and enterprise between or among other applications, integration and test cost is another easy to underestimate the part. A typical manufacturing company will use a lot of additional applications, such as logistics, tax, production planning and bar code processing, if coupled with the core ERP package customization, the system integration, testing and maintenance costs will be like run wild, out of control, a company must correct evaluation of its cost.
Customization
In the implementation process, companies should try to avoid the high costs of the core ERP software customization work. As the ERP software is a closely linked organic whole, customized ERP system will affect each module, after customization, ERP upgrade package will become unrealistic. If you want to upgrade to the ERP package, companies had to be custom work. In general, ERP vendors will not provide support to customers of enterprises must hire another developer to customize the work, but also developers to continue to do maintenance work after the operation of the system.
Data Conversion
From the original system transfer to the ERP system, business information, including customer and supplier records, product design data, etc., to spend a lot of money. In fact, most of the original system data such as the problem exists, but companies like to accept the fact that parents recognize his son as difficult as the Simpleton. Most companies have to wait until the data has been converted to the new ERP client-server package required only when the data do acknowledge their many flaws, the results are likely to underestimate the cost of data transfer. In addition, even if the correct data must be tested to make ERP implementation and the amendment process required to match.
Data Analysis
In the ERP software, you can do whatever you want to analyze - this idea is the ERP of a misunderstanding. In the analysis, corporate ERP systems often need to generate the data and the data generated by other systems combined. Analysis of a heavy demand for ERP enterprise budget should fully consider the cost of building data warehouse, and should know that it required a lot of work to run smoothly. In a large company, because of huge data warehouse, data warehouse is updated daily for all the ERP data is a very difficult task, while ERP systems are not good at identifying what information needs to change every day, which made the selection of the data warehouse is updated difficult. One solution is the user's own programming, but this cost is very expensive. Sensible people budget before the Council in determining control of all of the data analysis needs.
The cost of ERP consultants
As we all know, ERP consulting is a very large expenditure. But in order to avoid high consultancy and choose the low profile is not wise to ERP software.
When the user has not specified in the contract termination provisions, the consultation fee may overrun. To avoid such a consequence, recommended that companies in the training of internal staff should be clear that the advisory firm objectives to be achieved, and in consultation with the contract, including consultation results of the inspection clause, such provisions or how much employees should be tested through the project management lead Shuiping - standardization of work to consultants, advisers to the extent the cost of some control.
Replacement of key personnel
Practice tells us, ERP successful implementation depends on the personnel involved in the project are from the business sector and the information sector, the backbone of the elite. As the software is too complex, business adjustment is too large to ensure that all the backbone of all qualified for the project. Every enterprise must be prepared to face such a harsh reality that the end of the project quite a number of key will be replaced. In addition, although the ERP market, unlike in the past as prosperous, but lost key personnel are consulting companies and other enterprises will continue to use paid and thick Award to dig undermine the enterprise ERP application. ERP for the retention of talent, companies should develop a new wage and reward system. If we allow them to drain, companies will have to spend twice the salary to commission ERP experts for consultation.
The implementation of team-ending task
Most enterprises tend to be treated like other ERP software implementation project as treatment group, once the software is installed, the group disbanded in situ, its members in its place. But the ERP project is not so, members of the group for the normal operation of ERP system is too precious. As in the ERP software installation is complete there are a lot of work to do, companies should not rush to be sent back to the original project team members jobs. Unfortunately, very few enterprises in the information sector, after taking into account the large number of ERP software installation and maintenance work can start ERP projects included in the project budget for these costs even less.
Long ERP ROI
ERP implementation can easily be misled by the traditional software development projects, as long as the ERP system will immediately into profit, so the expectations are not suitable for ERP, enterprise long run only through the system and can focus on the transformation process in order to obtain real value of the project development team also have to spend a lot of effort to get their due rewards.
Depression after the ERP implementation
ERP system implementation is likely to lead to the operation of the abandoned area. U.S. consultancy firm Deloitte 64 for medium and large Fortune 500 companies conducted a questionnaire survey, a quarter of companies admitted that the process of implementation of ERP, business performance falling instead of rising, the reason is that ERP implementation methods of doing things for each person the practice before the big difference, when the company employees not familiar with the new ways of working, business disaster may soon come. Corporate executives in the early period of ERP systems, should be more focus on the operation of the system, reduce risk of disaster.