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W O R K S H O P

Buckle Up: Implementing an ERP Takes Time and Patience

March 19, 2001
By Lori MacVittie

The Quick List of Hidden Costs

A smartly devised ERP (enterprise resource planning) system can lower costs, increase productivity and provide enhanced customer satisfaction. The cost of implementing it, however, is much higher than that of purchasing and installing a canned software package. While software, consultant and implementation costs are more obvious expenditures, many other costs are hidden and end up wreaking havoc with the project if they are not addressed up front.

Consider the following when trying to determine the overall cost of implementing your ERP system:

Training

Retention/salary policy changes

Integration and testing

Data analysis

Data conversion

Waiting for return on investment

Never-ending implementation (tweaks and updates)

Adjustment time for users