There are many factors that contribute to the costs of a project to implement SAP Business One. In addition, the long-term costs must always be kept in mind. In our new series, we want to analyse all cost aspects.
When I recently looked at the statistics for the number of hits on our blog, the result was as expected and usual. Many visitors were interested in the costs behind the implementation of ERP software such as SAP Business One. Now the corresponding article "Prices and costs for SAP Business One" a little older, from 2010 to be precise (but has since been revised). A lot of time has passed in the IT industry (also in the ERP sector).
So has anything changed since then? Yes and no. Many fundamental considerations remain the same. And yet some factors have developed in such a way that they need to be mentioned in order to stay on top of things. That's why I've decided to take a closer look at the topic. And because this is neither easy nor quick to do, the a multi-part series.
What is written here about SAP Business One can be adapted in many areas to other software packages from the ERP world. Not to mention many applications from the business software sector.
The last point also leads to the first cost-relevant consideration:
Different goals - different costs - or concentration saves money
There is usually an important reason for introducing software such as SAP Business One. No medium-sized company decides to introduce ERP just for the fun of it. The process is undoubtedly too arduous and costly for that. There is one thing you should be aware of. Business software with many thousands of functions can be implemented at completely different depths. The deeper it goes, the more complex and cost-intensive it is. Studies assume that SMEs actually use just 30 % of the software functions they buy.
This does not necessarily mean that you would have thrown money down the drain for 70 %. standard software SAP Business One covers the processes of many different companies. However, it does not mean that you have saved anything if you do without functionality from the standard SAP Business One portfolio. This can lead to interruptions in system processes that have to be bridged at great expense.
Everyone will be happy, which means everything will be more expensive.
Every employee in your company is bound to have data processing needs that make their lives easier. The good news is that we can actually fulfil most of them with SAP Business One. The bad news is that all of this incurs direct and indirect costs.
An example: The sales department had previously worked with non-integrated CRM software and is now to switch to the integrated CRM module from SAP Business One. He notices a significant difference. In the old CRM software, the addressee of all activities was largely the contact. This is a single person who also has a company address. In SAP Business One, the central object is the business partner, who holds all the important metadata required for integrated processes. One of this data is the contact person, which actually corresponds to the contacts in the old CRM software.
But because people in general and sales in particular have a hard time with changeovers, people have often come up with the idea of leaving the old CRM software in operation and docking it to SAP Business One via an interface. No problem! Technically, this is now a simple exercise - no matter what CRM software wants access to SAP Business One. However, this is only half the battle. Is it that easy with the old CRM software? Is it even possible? Does the software even have the structure? And you've already launched an expensive parallel project that has little or nothing to do with your actual goals.
Calculation approach:
You have determined the cost of implementing SAP Business One with the included functions. Or they were offered to you. For each "extra" that goes beyond the adaptation of fields or evaluation, you should add approx. 10 % to the total budget (without licences).
It's the company's goals that count for business software. Nothing else!
TIP 1:
Firstly, focus on the processes that are the actual reason why you want to install SAP Business One in the first place. These are processes that are executed frequently or account for a disproportionate share of the process costs. This is the real benefit and brings the return on investment!
TIP2:
For each process you want to adapt from the functional standard, ask yourself: How often does the process occur and how many people are affected by it?
Tip3:
Do not deviate from your objectives without good reason. If these goals are changed or expanded, then only in a documented manner and with good reasons!
Therefore:
Hands off "everyone will be happy" concepts. There is a reason why you have opted for an integrated business application such as SAP Business One. It will pay off in many places - and yes - hurt in some places.
Monolithic ERP systems in SMEs: challenges, solutions and risk management
SAP Business ByDesign vs SAP S/4HANA Cloud
SAP Business One vs SAP Business ByDesign
Business process reengineering before ERP implementation
Introduction of business software - surprisingly not technological
