Business Management Software systems are usually sold through software resellers as they have the expertise to be able to help you from designing a blueprint that fits your business to implementing the plan and supporting it after installation. When determining the cost of implementation, consider the following factors:
- Licensing: This is the fee you pay to the Business Management Software system provider (vendor). It is usually priced on a per user or concurrent user basis and ranges depending on how many features you would like installed and how many people you expect to be using the system.
- Installation / Configuration: This is the fee you pay to your business technology partner. They will be responsible for installing the software and making sure it is set up properly for you. Some will have a project-based fee and others will have an hourly rate.
- Integration: Depending on your business and the existing applications you are using, there may be additional integration requirements which your business technology partner can help advise you on.
- Data Migration: This involves getting the data from your existing applications into your Business Management Software system. The cost will depend on how easy it is to export and import the data.
- Customization: While many Business Management Software systems are very robust and rich in features and reports there could still be additional options that may be specific to your business that you would like added. The cost of customizations will depend on how many new features you would like added and how difficult they are to implement. Some customizations / enhancements are pre-packaged or can be done with existing software and others require development from scratch.
- Training: This is the financial cost to bring someone in to help train your staff on how to use the new Business Management Software system as well as the time spent by your staff to understand the new software. Training costs will depend on how many staff you have as well as how robust a Business Management Software solution you decide to implement.
To get a solid understanding of what it will cost you, contact a Business Management Software system reseller who can walk you through the evaluation process and give you a quote on how much time and money it will take to get you set up. Make sure to also get references from clients they have worked with in the past and that you fully understand what the process of working with them will look like and what their deliverables are.
Using SAP Business One as an example, here are three sample scenarios to give you a sense of the cost of implementing a Business Management Software system.
Basic Scenario
- Company: A small, local provider of tax and financial services with annual revenues of about US $8 million
- Software selected: SAP Business One
- Number of licenses: Five
- Installed capabilities: Financial and customer relationship management (CRM)
- Consulting requirements: None
- Time frame: One week, with one or two training days
- Potential licensing and implementation cost: US $70,000-80,000
Typical Scenario
- Company: A US $32 million apparel distributor
- Software selected: SAP Business One
- Installed capabilities: Financial and CRM, inventory, purchasing, and production.
- Consulting requirements: Limited customization for reporting and user interfaces; data migration from QuickBooks and Microsoft Outlook
- Time frame: Two to three weeks, with one or two training days
- Potential licensing and implementation
- Potential licensing and implementation cost: US $170,000-180,000
Comprehensive Scenario
- Company: A national manufacturer with US $80 million in revenue
- Software selected: SAP Business One
- Number of licenses: 15
- Installed capabilities: Financials, CRM, inventory, purchasing, manufacturing, resource planning, and human resources management
- Consulting requirements: Extensive customization for workflows, alerts, reporting, and managing multiple locations. Data migration, including existing accounting, customer, inventory, and materials data. Integration with Microsoft Outlook, project scheduling applications, tax software, and key business partner systems.
- Time frame: Three to four months
- Potential licensing and implementation cost: US $350,000-360,000
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