Wanting to save costs on your ERP Implementation?
- | Technology can enable this...so let's do it ! |- Embarking on the journey towards digital transformation through the selection and implementation of a suitable ERP solution is both a substantial investment and a significant commitment for any organisation. Typically, the process of preparing for a market approach, selecting an ERP system, and executing a full business transformation can span 24 to 36 months. This encompasses a wide range of activities, from requirements gathering and developing market approach documentation to business preparedness, implementation, and the transition to business as usual operations. It's important to note that the shift towards cloud-based ERP systems, while offering numerous benefits, comes with its own set of financial considerations. Licensing for cloud services can be approximately 20-30% higher than traditional legacy on-premise services. Moreover, the overall cost of a complete business transformation, including all associated expenses, could demand an investment of two to three times the total licensing fees over a five-year period. Given these figures, setting aside a sufficient budget early in the planning stages is crucial for organisations, though it may prove challenging for many. A modern strategy for cost mitigation involves exploring a shared services model with other local government agencies. Such a model can lead to significant savings in procurement and external support costs. While the current ERP market has limited precedents for multiple agencies sharing a single cloud-based service instance, there have been successful cases where organisations have joined forces under a single Request for Tender (RFT) to choose an ERP partner. This collaborative approach not only reduces individual costs but also enriches the requirement development and evaluation process, benefiting all parties involved. Particularly for smaller councils or those facing budget constraints, sharing critical roles such as Programme Managers, Change Managers, and Business Analysts can be an effective way to manage costs while still achieving programme goals. This approach is especially viable for councils located in close proximity, allowing for easy logistical coordination. However, for those in more remote locations, a retainer-based model may offer a more practical solution, providing essential support services on an as-needed basis, thus optimising resource allocation and cost. To sum up, navigating the complexities of ERP implementation and business transformation demands careful planning, budgeting, and innovative strategies to manage costs. By considering collaborative models and flexible support arrangements, organisations can not only achieve their digital transformation objectives but also do so in a cost-effective manner. #trustedpartner #localgovernment #erp #transformation #sharedservices #strategicdirections
