We often hear ‘ERP is too expensive to implement!’.
If you believe it is a valid statement, then keep reading.
So, you also think that EPR is too expensive?
To illustrate my point, let us take an example:
I am going to invest and plan to buy an investment house.
I looked at two places. One is $500K, and the other is $3M. Both are within my budget. However, I feel that buying a $3M one is too costly.
How does it make any sense?
Yes $3M house is relatively expensive. But if I am investing, I should be comparing returns on investment, appreciation/depreciation of the asset, the life of the asset, and total cost of ownership. I should know the value the given asset will return for my investment.
Are you with me?
Let us now go back to the ERP world!
When the vendor quotes $2M for the ERP implementation, then you should not panic. Instead, evaluate what the business will get in return for investing $2M. ERP is a digital asset. So, assess the digital assets like other assets. Then, look at the net value back to the business within five to ten years!
This evaluation can take time, but it is worth it! So, don’t respond to the vendor on your gut feel. Instead, do the math and understand the net value of the deal!