Not the cost to replace an ERP system, but the cost of keeping your existing one going. However, that is not always the case. Without considering the costs from both sides, you are doing your business a disservice and may wind up hanging onto an ERP system for much longer than is financially wise.
Not only does your decision-making suffer, so too does your productivity. If your team must spend hours compiling information from various sources to give decision-makers the information they need, data silos are hurting your business. A modern, connected system stores all your important data in one place. So, users can generate reports with ease, many times in a matter of minutes, rather than hours or days.
With a modern ERP, adding new features that feed key information into the main system is a breeze, thanks to cloud technology. You can finally collect information in real time and make it available for on-demand decision-making, meaning that your entire business, from front-line workers to the C suite can move faster than ever. By contrast, a cloud ERP system needs much less maintenance. All you need are Internet connected computers and devices.
There is no other hardware to buy. Plus, IT related implementation, support and maintenance costs are cut dramatically since cloud ERP vendors take care of much of that for you with no input on your end.
When looked at in this light, the cost to replace an ERP system seems a lot less like an unnecessary expense and more like a smart financial decision. Try this tool from Acumatica. With it you can calculate the cost of doing nothing versus the cost to replace an ERP system.
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Read next. Phoebe Kranefuss February 6, Treatment A new model for OCD treatment. Patrick Carey May 24, Treatment How to choose a therapist or psychiatrist.
Patrick Carey April 11, Stephen Smith August 9, ERP systems are unnecessarily expensive to buy and maintain. According to Gartner Research: For IT, TCO includes hardware and software acquisition, management and support, communications, end-user expenses and the opportunity cost of downtime, training and other productivity losses.
Why are costs so high? The reason is that ERP systems are designed to be comprehensive, one-size-fits-all platforms for running all aspects of a very large, often multinational corporation.
Tailoring a gigantic industry-agnostic system to meet the specific needs of a small to medium-sized medical device manufacturer is very costly and inefficient. Because of this level of customization, most ERP systems are overkill for these kinds of companies. ERP systems have fundamental problems with the way medical device products work.
Unlike many products that are managed in ERP systems, orthopedic implants and instruments are often contained in bins and trays. Those bins and trays need to be tracked as individual items, but they also have items in them that can be sold and then replenished. ERP systems are not designed to support this arrangement, which is why ERP implementation projects often get stalled.
The end result is usually a workaround that heavily undercuts the value proposition of installing an ERP system. Using a general solution for a specific industry is both ineffective and inefficient. ERP Implementations are lengthy and painful and usually fail or at least fail to meet expectations. Following on the problems listed above, ERP systems are difficult and expensive to customize, which means that implementation projects are never shorter than one year and often exceed two to three years.
Furthermore, the project is never really over: systems integrators, for instance, become a permanent part of the staffing landscape. But if implementations took a long time but resulted in a well-functioning, highly-valuable system, the cost in dollars and time would be worth it in many cases. However, according to a Panorama Consulting Group study, there is a spectrum of implementation challenges that can result in varying degrees of failure. In short, we consider an ERP implementation to be a failure if one or more of the following occurs:.
Even the best ERP implementations lack features for reps in the field. They have no usable mobile functionality, which is what reps need most, arguably.
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