As mentioned in the conclusion of the preceding article, ERP vendors derive great benefits by supporting the growth of small business, which are known in the industry to be principally responsible for developing innovative technologies, but are prevented in large part from releasing them due to their limited size and profit margin (which also leads to limited market presence as a consequence).

ERP cost - The Many Variables Which Can Affect a Buyer’s erp cost Considerations (Part II):

Is the Erp Software Solution Designed Specifically for Medium, Large, or Small businesses and Start Ups?

In effect, not only do these vendors benefit from the introduction of new technologies and software systems, which they can then integrate into their products to improve quality and develop additional innovative features for their customers; but it is also specifically because, by catering to small businesses and start-ups, they also help in promoting the propagation, commercialization and global implementation of these new technologies, some of which may potentially contribute greatly to the public good. So, one of the important questions for potential buyers when comparing the erp cost of products and services offered by different vendors (big or small), concerns whether the software is meant specifically for medium, large, or small businesses and start ups.

A Further Factor To Be Considered in erp cost Analysis: The N umber of Applications in the ERP Software
The number of applications integrated into a specific software is a further component in erp cost analysis.  Quite naturally, erp cost goes up the more erp applications are added to the software. This also means that the maintenance fees for customer or technical support or any other service or product issue, which are charged by traditional ERP vendors, may increase as a result -  the greater the number of applications that are integrated into the product.

Therefore, companies for which erp cost is a primary concern, should avoid the mistake of buying a more expensive ERP software just because it possesses a wide choice of  numerous applications which the buyer company may not need, but it may be lured into buying simply because it has more functions and applications than others on the market - and that makes it more appealing, as a consequence, to any buyer, even though they may only require a solution for an immediate need, or for only a single business aspect or company process.

One of these may be a limited marketing operation to be implemented on a local level, rather than globally. And this leads us to a further point of concern for buyers considering erp cost options; whether they intend to localize their operations to a restricted geographic locality or access multiple industrial sectors and market zones on the international stage.

Connected to this last point, which involves the multiple intricacies of the localization process (an extensive operation comprising numerous stages and as applied to the various definitions proper to the term “localization”), other variables a potential buyer should take into account include whether the company intends to localize ERP implementation to a specific and limited set of company functions; whether enterprise resources are to be used for internal company needs to reorganize its business infrastructure and the homogenization of the workforce by merging all company departments; or are specifically meant to promote or to be deployed for external markets activities.

Written by :

kristine H