What does ERP software cost?
CiMSO‘s Enterprise Resource Planning (ERP) toolbox provides business management software that allows hotels, resorts, clubs, lodges, and guesthouses to integrate all their management processes on a single, next-generation, customer-centric system. There are precious few next-generation ERP systems that integrate Property Management (PMS) into a seamless system with full financial control to balance sheet.
From CiMSO’s investigation, we have found companies spend on average 5-10% of their total investment budget on an ERP solution during the initial implementation phase. Furthermore, companies typically spend about 1-2% of their annual budget on the SLA plan.
The following factors dictate the cost of an ERP solution:
Organization Size
Smaller companies will require fewer people on their licenses and will usually have smaller manufacturing and supply chain operations, which means less complexity when migrating systems. The larger your business is, the more you can expect to pay. Companies can avoid some upfront implementation costs by selecting a cloud deployment, which doesn’t require hardware implementation.
Implementation Complexity
Larger organizations and sometimes organizations already heavily invested in a different ERP system may require more work and planning to migrate to a cloud ERP system. Hosting ERP software on internal servers also adds a layer of complexity and additional costs.
Required Features
Some businesses may require more features for their ERP system than others, and those additional features and services may result in a higher license or subscription cost.
Customisations
If a business needs custom features built into their system that are not ordinarily required, it may involve additional development and implementation costs. Businesses should focus on only adding the features they need.
Recurring ERP System Costs
Keep in mind that there’s more to budget for than just the ERP implementation. In addition to upfront costs, there are ongoing expenses to consider, like:
IT Staff:Your ERP system will have to be managed, and an on-premise deployment will require internal IT staff to handle any technical needs that arise.
Customer Support:While basic support, like knowledge base and email assistance, is typically included in the price of an ERP solution, more advanced support will require additional fees.
Maintenance and Upgrading:Many on-premise deployments charge additionally for maintenance and software upgrades. However, if you pay a subscription-based fee for a cloud ERP deployment, the cost of maintenance and upgrades may already be factored in.
How Much to Spend for an ERP Solution, Sample Calculation
Income per month at least 2,000,000 Baht. Total gross revenue per year, or the project investment budget, is 24,000,000 Baht
ERP Budget: 24,000,000 x 5% = 1,200,000 Baht
However, there is no fixed percentage on how much you should spend on the ERP system because it will vary according to the customer’s needs. For example,
- If you want a golf course management system but do not need an accounting system, you will only pay for the golf course management system.
- If the management wants to see an overview from sales management, the inventory process, and accounting, this ensures the rapid growth of the organization, because the system will increase profits. The company will decide whether to implement the full, integrated ERP system.
If you are considering how much you will spend for an ERP solution, keep in mind that the actual ERP software cost will be a minor portion of the total project cost, compared with the other investment costs, e.g., construction, employment, consultation fees, licensing, etc.
An ERP system is one of the biggest investments that a business owner will ever make, and the greatest benefit to ERP systems is having one reliable source of truth for your company. You can collect real-time data about your operations by connecting all business areas under one system. This visibility can lead to better communication among departments, reduced costs, decreased downtime, more accurate and thorough reporting, improved relationships with customers and vendors, greater flexibility, and overall optimized efficiency.
If you require a consultant system and an ERP system for hospitality businesses (golf software, hotel management software, resort management software, event management software, restaurant, F&B and Central Kitchen Management Software, spa software, wholesale retail management, franchise management, and other service businesses)
Feel free to contact CiMSO ERP Software for a short demo (free, via online) at 02-1296312 or marketingth@cimso.com
To contact CiMSO Sales Team by phone, please call +66-21296312 or email at marketingth@cimso.com
