Hidden Costs of an ERP Implementation

7 Hidden Costs of an ERP Implementation. There is good news! According to the analysts and consultants in the ERP sector, if we look at how much the average ERP implementation costs today as compared to just a few years ago, the cost is lower. The bad news is that there are still a good number of companies that exceed their ERP implementation budget, sometimes significantly. So, the question becomes is how successful companies avoid ERP implantation project costs.

An ERP implementation project impacts everyone in the organization and large-scale technology projects that initially thought to be straightforward, can prove to be anything but. Many factors contribute to cost overruns including lack of honest communication between the vendor and changes to project scope in addition to soft costs.

Soft costs could include training time, potential operational downtime, additional in-direct costs associated with extended telecommunications bandwidth, hard infrastructure in the case of a private network, and additional overall extended enterprise costs associated with the operation of virtual off-site smart device connectivity. And yes, sometimes software vendors often over-promise and under-deliver.