How can you make an impressive budget plan for ERP implementation

by Alex Forsyth Developer

Making an impressive budget is one of the crucial tasks for proper ERP implementation. Let’s see what an expert Odoo consultant of Australia has said about it here in this article.

While making the ERP implementation budget, the members of the management, as well as the decision-makers of a company, need to consider several aspects associated with the scope of the project or the business. A wrong step or missing out any factor can simply lead to a massive business loss. This makes it imperative to make the budget carefully foreseeing the required factors.

To help you out, an expert Odoo consultant of Australia has shared 4 smart tips for making an impressive budget for appropriate ERP implementation in the business system.

Consider the software licensing costs:

Based on the most suitable deployment model that can be cloud, on-premise, or any other option, the ERP software licensing cost can be determined. Different deployment models come with different advantages and disadvantages. You need to choose the right one based on your budget and project requirements. You can consult a good ERP service provider for this. Once you are done with the choice of the deployment model and you know the cost here, you are good to go with the other cost factors for making the ERP implementation budget.

Plan and forecast the HR requirements costs:

Undoubtedly, a successful ERP software implementation not only involves costs for the technical things but also includes expenses for human resources. In this case, human resource involvement will be both internal and external. You may need the help of third-party ERP software consultants as well for getting better insights about the software solution and this will definitely involve a cost. In addition to this, you will also have to provide the required training to the employees to ensure effortless handling of tasks in the work environment later on. Therefore, you need to include all these expenses related to human resources while you are making the ERP implementation budget.

Plan, calculate and consider the technical expenses to set up the ERP software:

Probably, planning and calculating for the technical costs to set up the ERP software solution is one of the most obvious things to consider while preparing the budget. The decision-makers and the management have well-structured ideas about the project scopes as per the business requirement and they can even ask the vendors about the quotes. Hence, they can determine which vendor is giving them the best deal meeting all their functional ratings for the budget plan. These costs include expenses associated with the hardware, maintenance, hosting, network, technical support, application software, technical communications, interfaces, etc.

Consider the contingency expenses for emergency risks:

While implementing the ERP software, you may come across some of the unforeseen risk factors at any stage of the implementation process. Obviously, you need to make proper planning for handling such risk factors. But situations that are beyond the control of the organisation may cost a little or more. So, don’t you think that it is always better if you can prepare some contingency costs to deal with such emergency issues? While making the ERP implementation budget, never forget to foresee this particular cost in your budget plan.

Do not forget to consider the data migration costs:

When you are integrating or implementing a new ERP software solution into your business system, you need to extract and migrate all the business data from your current software to the new system. This migration and extraction process involves expenses.

While the ERP implementation is carried out, there is always a high chance of getting a better and clear idea about the real savings and calculated costs. This is all because of the recently implemented ERP software solution. It is suggested to keep a track on the progress of the implementation process. If possible document it in details so that you can analyse, compare and review once the implementation process is over.

Alex Forsyth is an expert Odoo consultant of Australia associated with a reliable ERP service provider, Envertis Software Solutions. With experience and expertise an ERP consultant, the author has written this article to help business owners with the best tips for making a budget for the ERP implementation.