3. Type of Software License

There are different types of licensing, such as perpetual licensing or the subscription model. These licenses are generally linked to the deployment model mentioned above. For example, cloud ERP costs less as they are typically subscription models and give the user access to the application without further actions.

For hybrid and local deployment, the license fee is higher initially, and annual maintenance is required for access to support and ERP upgrades.

4. Material Expenses

If you're planning an on-site deployment of your ERP, you'll also need to consider hardware costs in your ERP budget.

• ERP software cost

• Server purchase

• Cybersecurity solutions

• Server, network and workstation maintenance

5. ERP System Personalization

For most organizations, from small businesses to supply chain giants, allocating a budget to customize the ERP is necessary. That means all the development work involved in tailoring the application to your requirements.

6. Industry

Some industries, such as the manufacture of complex parts for highly regulated sectors, will also see the cost of ERP rise. Why? Because compliance needs and the number of functions required influence the ERP price.

7. Additional Functions and Modules

The addition of advanced functionalities and ERP modules should also be considered, depending on the company needs and the approach used for the initial deployment (Big Bang vs Phased).

8. Integration with Other Systems

The number of solutions your new ERP needs to integrate increases the complexity of your ERP project. The ERP implementation cost includes a price for a certain number of billable hours. The more complex your project, the longer it will take, the higher your ERP budget.

9. Data Migration

Another crucial element to consider in the budgeting process is ERP data migration. This can either be handled by the customer or the integrator for an additional investment. We're talking about data extraction, transformation and loading (ETL), and data cleansing services to ensure data integrity in the new ERP system. Dealing with a data conversion specialist ensures a secure transfer, which is paramount to the success of your ERP implementation.

10. ERP Cost per User and Externa Interfaces

The vast majority of ERP suppliers offer per-user pricing. You'll need to consider this cost when preparing a budget for an ERP system. In addition to the number of users, external interfaces (CRM, financial or accounting systems, e-commerce platform if you sell products online, HR sytems, etc.) also impact ERP implementation costs.

11. User Training

ERP user training is a crucial step in ERP implementation project management. The cost is higher when a company calls in a professional, but it also affects productivity, as employees have to take time off work to attend training.

12. ERP Services Contract

Deploying an ERP system requires personalized support to make the most of your solution. Professional implementation services typically include:

• Review of business processes

• Training

• Configuration assistance

• Assisted pilots

• Support with application deployment (Go Live)

These phases require an investment of integrator resources, which are paid for by the hour. Following deployment, ongoing investment is vital to ensure the level of use of the solution remains high. We recommend frequent updates to ensure you always benefit from new technological developments. For example, the integration of AI into Epicor Kinetic thanks to the Grow AI portfolio and Epicor Prism.

13. Internal Costs

The involvement of an in-house project team is also an aspect that shouldn't be overlooked when assessing the ERP price. A drop in productivity is to be expected as your project team dedicates part of its time to the ERP project during implementation. Although this doesn't add any expenses to the project, it is still an internal cost to plan for.

14. Discontinuation of Previous System

There are several other costs associated with service termination. For example, in the event of early termination, if your service contract has not expired. If your previous system was hosted on-site, you may also encounter costs associated with decommissioning or reassigning infrastructure (servers, hardware, etc.). So, always take the time to check your contractual obligations before launching a new project .

15. Total Cost of Ownership of an ERP System

To get a general idea of how much your ERP software will cost you in total, it's necessary to calculate the Total Cost of Ownership (TCO). The TCO calculation is as follows: 

ERP purchase price + implementation + operating costs for 5 to 10 years