Why Do So Many ERP Projects Go Over Budget?

Why Do So Many ERP Projects Go Over Budget?
The most common reason accounting software implementation projects go over budget is because the Partner is spending time working on things not included in the original quote.This work is called out of scope.

Here are a few examples of how this can happen:
You see all the cool things the new system can do and find yourself a kid in a candy store saying, "wow , can we get it to do this too ? The answer is yes, but this request is beyond the scope of the original proposal

You were quoted 8 hours of training for the AP clerk. This AP clerk is slow to learn, or is replaced by a new person halfway thru the project. The Partner must spend additional training time that was not included in the original quote.

You have a report you require from the new system, but you didnt show it to the Partner in advance because you just assumed it would be included. It needs to be designed from scratch and this time wasnt included in the original quote.

A good ERP Partner will tell you in advance if work needs to be done that was not included in the original quote, and get your approval before moving forward.

ERP Server: Do you have what you need?

It is highly recommended that mid-market accounting packages, such reside on their own dedicated server.

Your Partner will be able to provide you with the minimum system requirements, but servers come in “Honda Civic” to the “Rolls Royce” versions so you will need to rely on a trusted IT advisor.

If you decide to set up a portal (a secure online site to view data) for your system, this may require an additional server called an IIS server.

Business Intelligence and Reporting Services may also need to run on a separate server.

If you have a large number of reports, and run them on the same server as your application, it can dramatically impact performance. The result is frustrated users and complaints.Plan ahead and distribute the processes evenly across multiple servers if necessary.

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The ERP hardware requirement

Many companies carefully budget for the costs of the software, the services, and everything in between, but they forget to factor in the costs for the hardware required to make it all run. Missing this cost can be a painful stab to your budget.
We have outlined a few of the critical hardware pieces to factor into your budget.
Many accounting software Partners do not sell hardware, but they should have partnerships with experienced IT companies who can review your options with you.

ERP Support

If your Partner has the technology to remotely connect to your data from their office, it can significantly reduce your support costs.

Face to face meetings are great, but if you want to save money, let the Partner support your system remotely.