Selecting & Implementing a New ERP System?

Consider The Cost of Change in ERP

When selecting ERP software, buyers typically make one glaring error – they focus on the traditional ‘cost of ownership’ - software licences, implementation, maintenance and support. But they forget a critical question: “How easily the software can be altered when there is an unplanned business change?”

When the organization restructures, or there’s a merger or acquisition, or simply a change of business process, how easy is it to make that change? The answer can significantly impact the ongoing cost of an ERP system.

CFO Research Report: The High Cost of Change for ERP

This report from CFO Research provides critical benchmarks for managing change in ERP systems. Based on a survey of senior finance executives, it finds that the ongoing costs of keeping their ERP systems in line with their changing businesses is considerable, running to more than $1m even for mid-sized organizations.

  • "The question isn’t whether a typical ERP solution supports change, but rather, at what cost?"
  • "When evaluating ERP systems,companies need to look well beyond their “sticker price.”
  • "In many cases, companies’ ERP change initiatives fall short."
  • "a typical company in our survey may spend an average of more than $1.2 million each year to maintain, modify, and update its ERP system."

Mint Jutras research findings – business disruption costs

Research from industry analyst Mint Jutras warns that choosing an ERP system that doesn’t support rapid, easy, frequent ongoing change can seriously disrupt business and hold back growth. The typical financial and strategic impacts uncovered by the research are staggering - 73% of the respondents said that financial management driven change was requiring moderate to substantial ERP change on a continuous basis. The disruption numbers were similarly onerous for the four other areas:

  • 69% required moderate to substantial change of their ERP solutions for new or changed business processes
  • 66% for organizational restructuring
  • 61% for regulatory requirements
  • 58% for merger and acquisition activities.

Download a FREE copy of the Mint Jutras report: "The High Cost of Business Disruption Modifying and Maintaining ERP - is it costing you too much?”