Upgrading an ERP system can be costly due to expenses associated with software, hardware, consulting fees, training, and opportunity costs of internal staff time spent on the upgrade project. In addition to the direct costs of the upgrade, organizations must also budget for ongoing infrastructure costs, maintenance and support contracts, and smaller additional projects needed to customize and improve the ERP system over time. Careful evaluation of current systems and business needs is necessary to determine if an ERP upgrade will provide benefits that outweigh the significant financial costs and long implementation time required.

1. ERP upgrade and Real Cost
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2. INTRODUCTION
• Upgrading or installing a new Enterprise Resource Planning
(ERP) system completely can be a big task for any
company
• ERP software expensive but it can also take between
several months and one year to properly integrate into
networks and start seeing the performance advantages
that this system promises

3. • Initially , business process needs should be considered,
and executives and IT specialists need to determine
whether current systems are running effectively .
• If ERP upgrades can provide answers to demands then the
time for ERP investment may have arrived .

4. Many organizations are confused on how and when they need
to spend the money for the upgrade . We hope this will
surely help you to recognize the different aspects of the cost
associated with ERP upgrade. The important things should be
considered during ERP upgrade is listed in the coming slides.

5. UPGRADING ?
• The upgrade, in itself, will carry its primary cost
• Includes the consultation fees to the consultant or partner
• The cost of the hardware and software should also be included
• Other costs that are associated with the upgrade is internal
the opportunity cost of the finance team and others,
IT personnel costs etc.

6. • The cost of an ERP implementation project should be expected to cover the expenses of the software,
training, subscription costs, personnel and change managements
• Sometimes you need to spend on the operational Support of ERP.
• ERP is complex you need some support to run it properly in the initial stage

7. WHAT ABOUT INFRASTRUCTURE?
The Cost of infrastructure Includes the cost of any additional equipment needed for the upgrade, such
as additional servers, new computers or devices like the biometric machine, network/connectivity
upgrades, etc without proper infrastructure, it is tough to run or implement anything.

8. MAINTENANCE AND SUPPORT
This includes maintenance for day-to-day operations, and any support required to keep your ERP
software and infrastructure up and running i.e, maintenance and support for small upgrades, cleaning
database, doing timely maintenance / upgrading of the system.
STATUS QUO OPPORTUNITY COST is also important to
take into concern.

9. SUPPORT PROJECT COSTS
• ERP is a big project and it requires small projects to run alongside for a successful run.
• The mini projects are carried out all around the year and it can easily include the fixes, patches and
other forms of the features and functionality add-ons.
In the end, there are many ways to look at the ERP upgrade.
For example, Odoo or open ERP integration / customization
and upgrade improve costing due to free licensing and
open source nature.

10. It is important for companies to evaluate the market and take decisions appropriately.
The cost associated with ERP upgrade are definitely not a small amount and that is why
sufficient time should be needed to take decisions on ERP upgrade.
For more information regarding cost related to ERP upgrade,
do not forget to contact us.