The cost of ERP in any market, be it India or global is having several factor to consider. While in general ERP look like very costly solution and small companies tend to lose interest in it due to high prices of the solutions.
There are no fixed prices for the ERP solution in market and prices are very negotiable from clients to clients. However this is standard practice, but companies like Techzone India is making life little bit easy by providing a complete transparent prices and almost free customization of the stuff for Indian market.
Key pricing factor of the ERP Solutions
1 Licensing – the first component of the ERP solution is application software license.
2 Analysis & Customization – the 2nd components of the ERP solution pricing is Deployment and form customization along with business logic managements.
3 Infrastructure – the 3rd large cost is infrastructure, the IT infrastructure mean all the hardware, software and clients hardware requirements to run your ERP solutions smoothly, the cost of infrastructure can be as per the selected mode of implementation. If you are going to do it in premises or hosted or saas. There is cost factor that change for infrastructure. Let say if you are using in premises installation of ERP solution it will add a burden on in House IT resources, a server and backup system and up front capital cost will increase. To know more about the best deployment and compare between them click here
4 Maintenance and Training – the 4th components of any ERP deployment is maintenance and training, the maintenance cost and training can me very minor and it can be accommodate in the general operation cost of business.
5 Data – data conversion or making data usable for the ERP and your business is again a cost hurdle and one can safely say that the cost of data conversion is depend upon your overall preparedness and current use of the software or process. Let say you are using some accounting and inventory software where we have option to import data on the excel , then it can be get imported in hardly 10-15 days even for the data that is of 5 years of your business, wherein if you are using any sort of manual system or system that is not having any option to get data in bulk, then the data conversion cost and time can be higher. This is also make sense sometime to go with your new ERP system with all new data only and down the line 1-2 years when your system is completely established and the finance burden of the ERP reduced from the balance sheet you can go for archival based data integrations.
Costing Structure of the ERP
In general the cost of ERP system is considered on the above point only, but the higher degree of customization, licensing fee and other cost will lead the price list.
Our estimate for several industries with 50 users and 5 locations are below.
The price list below for hosted services and on premises services.
Hosted on Cloud ( No monthly Rental / Full Customize ERP solutions) with Separate hardware and software on cloud.
For Manufacturing Process with up to 5 Locations for manufacturing – the standard cost of deployment of an ERP solution can be in the range of Rs. 4,00,000 to 15,00,000/- where the solution is full customize as per the requirements of business, using a solution platform and modules.
For the service industry and Consumer Electronics Trading and service providers- the standard cost of the deployment of ERP solution in the range of Rs. 2,50,000 to 12,00,000/- where they can have all the customize module and service management system integrated.
For real estate Developers – builders and developer can deploy the Complete ERP solution with project managements and sales lifecycle management for the range of Rs. 800,000 to 20,00,000. The solution is complete customize and will give multi location, multi projects and managements of your broker networks and employee all together at single platform.
The on premises will add additional cost of hardware and software infrastructure to your budget.
An affordable ERP for your business
In a move to assure small business customer in India implements ERP solution and run there business with all the features of large business at affordable prices Techzone bring ERP for small business that is designed exclusively for the indian manufacturing and Services industry and not come with string of higher prices or unwanted modules. The entire system is designed for one to one module activation and easy deployment for any size of business. You can grow your ERP with your business and get full customization on the platform without making any hole in your balance sheet.
Techzone small business ERP is cloud hosted solution where you are not going to pay any monthly rental or any extra feature cost, the data is also not on shared system , the entire solution run on separate infrastructure for each company and give you speed and control equal to on premises solution, without any investment of capital equipment’s like servers, software or additional hardware’s.
Techzone small business ERP on Cloud designed to provide the small and medium enterprises to implement a suitable resource planning which will guarantee a return on investment, thus making it to grow their business beyond their expectations and margins.
The key operational factor for SME is to increase operation efficiency, reduce cost of production, supply chain management and deliver product to customer. The major obstacle for the SMEs is the cost element associated with ERP implementation, which are usually very expensive. Techzone small business ERP on cloud is priced at cheaper and afforded by even very small industrial units. Special scheme for registered MSME members to pay the ERP cost in 3 Years and subsidy from the NSIC is additional features for the deployment of end to end ERP solution for small business.
Apart from the cost there are some other important factors to be considered before finalizing the cost of ERP Software implementation.
This is because ERP Software is developed as the industry specific requirement. Therefore ERP software price is always negotiable as each company’s requirement differs from others. The final pricing of ERP Software will depend on what is recommend for each company’s requirement which will make the operations of their business process much easier.
What we would like to remind our potential customers is that the price of ERP implementation cannot be calculated on a flat rate basis like any other Software available in the market. ERP Software should not be treated like any other Software that can be purchased directly from the vendors and installed in your computer system. Developing an ERP system needs lot of studies and research. Each company requirement and operation methods have to be scrutinized before a plan is laid on the drawing board, which ultimately get into the hands of development team for further process that comes into alive with an operation module of an ERP system.
While considering the final pricing of an ERP system implementation, all these factors must be taken into consideration. The size of the company with its users and branches also is one of the factors that to be considered while finalizing the price of an ERP Software.
Customers should also realize that price of ERP Software cost should also include consideration for the rest of the implementation costs that will be incurred.
Despite all the above facts, Techzone ERP for small business gives you real advantage of new technology that bring down the cost of software development and ERP at really affordable prices. The Techzone ERP for SME on cloud will help you to get your business running on customize ERP solution at the prices and features that not affordable to SME.
We always recommend lets evaluate all the solution of ERP and then select the best fit for your business and budget. Do not forget that you cannot buy elephant for the prices of goat, however if you are buying elephant it need huge cost of feed also, so let go for the solution that is not eat your profit, but encompass your profit margin by adding value to your business without much of the noise in the air.
Techzone ERP for SME on cloud is ready solution with Module and ERP engine that can further customize as per the requirements. Some of the popular module of our solution are
Sales and Distribution module
Purchase and Supplier Module
Inventory and Material Management Module
Shop Floor Management Module
Total Quality management
Accounts and Finance Management
Human Resource Management
Budget Planning and Managements
Tenders and Contract Managements
About the author : mukesh jha is director technology at Techzone and having very sound experience in system design, ERP implementations, Software development, Process innovation and cost effective software innovation. Within the 15 years of its enterprise business software exposure, he brings innovation in several process and companies that converted to direct profit. You can find him at linkedin, facebook and send direct email at firstname.lastname@example.org.