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The Real Cost of Implementing an ERP

The Real Cost of Implementing an ERP

When looking at the cost of an ERP implementation, there is no real estimate figure that your company can view. Due to the complexity, and time spent developing the right system, it means that the Implementation cost varies greatly depending on your business size, industry, country, etc.

Estimation Ranges

Small Businesses $10,000 – $100,000+

Medium-Sized Businesses $100,000 – $500,000+

Enterprises $1 Million – $10+ Million 

Due to the range of costs, it is hard to exactly determine your estimate without discussing it with a Microsoft Dynamics Consultant. The Majority of these costs encompasses both the internal & external Human Resources.

If we look at breaking down the costs to better understanding where the money is spent, the three main aspects include the number of users, the industry of your organisation, & the number of business locations.

  1. Users – According to Software Paths ERP Report, the average cost of the user in an ERP implementation is around $7200, while not all employees need to be users in the implementation, around 1/3 of staff will use the company’s ERP Software.

  2. Industry – Depending on whether your organisation specialising in service, you may find it difficult to find the right solution for you. For Manufacturing, Distribution & Transport, etc, there are specifically tailored solutions for these businesses, which may help to reduce cost, with no need for heavy customisation or third-party add-ons which can become costly.
  3. Locations – If your organisation is operating out of multiple factories or offices in multiple locations, there will be increased costing, ensure that the vendor you choose helps to provide the information above to ensure you know the costing of a potential ERP Implementation.

The total cost of your ERP will be heavily dependent on the above, but there are still multiple factors you will have to consider when implementing Microsoft Dynamics 365

we also recommend using our ERP ROI calculator to see how much you’ll be saving by implementing an ERP.

Including.

Customisations
Third-Party Add-ons
Integration
Data Migration
Additional Features & Module

Upgrades
Licenses
Testing 
On-Going Support

Understanding business needs is a key step in the process of implementing an ERP. It is very difficult to determine an accurate scope of your project without an in-depth understanding. 

Contact our Microsoft Dynamics Consultants Today.

Essential Steps for Choosing an ERP

When looking at the essential steps for choosing an ERP, we have compiled a shortlist that we believe are the most important aspects.

 

Clear ERP strategy

When it comes to implementing a new ERP System, you must have a clear vision of the journey you are about to embark on, understanding the system and what it needs to deliver. By developing a clear and concise strategy, you will be able to categorise costing, and the potential ROI by clarifying functional, organisational and geographical scopes.

Upper Management Support

This sounds like an obvious step when considering an ERP Strategy, but unfortunately, the importance of this is sometimes underestimated. Regardless of if you have the best ERP System for your organisation, without the right support from management, it increases the failure rate significantly.

Support doesn’t just mean approval, upper management has to be actively involved in all steps to ensure the strategy is implemented properly. When the topic of implementing a new system or upgrading your current system, it is very important that the manager truly gets on board to support the transformation, even if there is a short term cost for a system.

Understand the Total Cost of Ownership

When discussing the sales cycle with your vendors, sales representatives always seem to downplay the costs, and more importantly the risk of implementing an ERP System. That is why it is essential that you and your organisation makes sure about the cost of the product to ensure there are no hidden costs later when you are committed to the project. Ensure that you have the information on implementation costs, hardware upgrades, backfilling your project team resources, software maintenance, etc.

Consider the Vendor’s Reputation

This can be the most important step in the process, without the right vendor, you may be heading towards failure. By ensuring the reputation and previous clients your vendor has worked for may give you the comfort you need to trust them. Making sure your vendor fits your organisation is a critical step in the process, helping to increase the likelihood of a seamless implementation. Speaking to other clients can help you to make the right decision on the vendor for your organisation.

Finalising Contract Documentation.

To ensure that you and your team are happy with the contract documents, it is highly advisable that you get your documents reviewed by legal professionals, to ensure that the department is happy with everything including Intellectual Property Rights, Software Acceptance, Insurance, Confidentiality, Liability, Warranties and Dispute Resolution.

Your department and upper management must take care when reviewing these contracts to ensure you are clear on who is responsible for delivering what and when. The vendor may assume you are responsible for certain aspects which you may not have been considering to be your responsibility. This is a common cause of conflict during implementation.

To help avoid common downfalls, make sure you have the right experience and knowledge of ERP & Business management software, It’s advisable to get external independent help if you do not have this expertise in house. Ensuring you receive the right information and propelling your business in the future.

Provide the Necessary Time & Resources for Training

An ERP Implementation is not a small project, time and effort need to be spent on resources and training for the users. Inadequate User Training is one of the most common failure contributors when it comes to ERP implementations. Learning a new way of operating will always be tough, but with the right support and training, it helps to reduce the burden put on employees

 

If you have any questions or concerns, Contact Us Today

ERP Implementation in the Manufacturing Industry

ERP for Manufacturing Businesses

What is an ERP System for Manufacturing Business?

 

With the right ERP System, your business can manage all aspects of your business workflow, cost, and visibility. With Inventory Control accessible from all your warehouses, factories and supply chain.

When looking at ERP, finance is a major part, your accounting systems are integrable into the system to ensure that all your numbers are available. Some vendors may say that the accounting system is the base of your ERP while being able to provide your business with modules for payroll, data analysis, forecasting & reporting. 

Microsoft Dynamics 365 is improving your workflow, by automating a large range of business processes. This provides them with the opportunity to minimise errors, cut time spent on manual tasks which improve productivity.

 

Microsoft Dynamics 365 Finance & Operations ERP implementation in the Manufacturing Industry

 

Microsoft Dynamics for Finance & Operations ensures that your supply chain management is automated. With the ability to set reorder levels on your inventory, you can ensure that critical stock never runs out, by ensuring that when your stock is low there is an automatic order placed.

The introduction of cloud-based ERP for manufacturing computing has been digitally empowering all businesses to reinvent and revitalise their way of business processes. With the inclusion of Microsoft Dynamics 365, it has allowed companies and affordable and accessible solutions.

Due to the nature of the Manufacturing & its heavy process industry, it is important to provide manufacturers with the ability to enhance their operations & customer engagement to enable improved productivity.

 

Microsoft Dynamics Manufacturing ERP

 

With an all in one integrated system, Microsoft Dynamics 365, provides a wide range of applications and modules to help break down front & back end processes by automating tasks. Leading to better visibility, unified operations, and improved client engagement.

With more accurate production planning, improved inventory management, streamlined process and better visibility of your distribution channels. With manufacturing management software, your organisation can deliver products on time to help maintain a positive interaction with customers. 

Microsoft Dynamics for Finance & Operations offers data in real-time, so your staff can make more accurate decisions.

 

Just because Microsoft Dynamics can offer you great business solutions, it is important to remember without an experienced vendor, you may find yourself with a solution not suited for you. Feel free to Contact Us Today, or visit our Manufacturing Page for more information about features and benefits.

 

Single Touch Payroll Business Integration

 

How the new Single Touch Payroll (STP) legislation will affect your business?

 

 

Does your current software offer single touch payroll?

 

Payroll has gone through a significant legislative change in 2018. From the 1st of July 2018,  Employers with twenty or more employees are reporting to the ATO through single touch payroll unless granted a deferral. 

You might be wondering what Single Touch Payroll is?

It is really quite simple. STP or single touch payroll is a new reporting method of sending employee payroll information to the ATO. Information such as salaries, wages, PAYG withholdings and superannuation will be reported directly to the ATO in the standard pay run, instead of at the end of the financial year. Giving the employee easy access to up to date payment information

STP will save businesses valuable time around the end of the year without having to process all those employees, it’s already done making it much easier. By the start of the financial year in 2019, all organisations will need to report through STP as it will become a mandatory requirement for all businesses. This will be a gradual transition and the ATO are providing flexible options for the first few months.

If you are struggling with business solutions, do not worry, as we can provide your business with a solution to ensure you will be in compliance with the ATO while providing software to utilise STP and provide Australian Payroll on D365. When looking at whether your current software is able to integrate your payroll and other business processes. You cannot look past Microsoft Dynamics 365 for Finance & Operations. 

 

At DFSM Consulting, we will help to find the perfect Microsoft Dynamics solution for your business, regardless of size or industry. Contact Us Today.

 

AX 2012 to Dynamics 365 Upgrade

AX 2012 to Dynamics 365 Upgrade

 

Are you considering upgrading from your current Microsoft Dynamics  Version? There are a couple of considerations you will need to make before making a well-informed decision. Hopefully, this article will help you determine if it is the right time to upgrade to Dynamics 365.

 

Support Lifecycle

Support Lifecycle may be the deciding factor for your change, depending on what version of AX you currently have. You may or may not still have support from Microsoft. If your software support has expired or expiring soon then upgrading to Dynamics 365 soon would be a smart business decision regardless if you have MS Dynamics 2012 or Dynamics AX 2012 R3.

 

There may be a benefit to improving as current MS Dynamics AX 2012 clients who are current on their annual enhancement and have a version still supported with have access to pricing discounts until November 1st 2019. You may need to check your current plan against what level of support Microsoft is offering.

Version Mainstream Support End  Extended Support End
Dynamics AX 2012 9th October 2018 12th October 2021
Dynamics AX 2012 R2 9th October 2018 12th October 2021
Dynamics AX 2012 R3 12th October 2021 10th January 2023

 

Planning Required

 

When your organisation plans to upgrade to Dynamics 365 Finance & Operations, you will need to assemble a wide range of stakeholders, including business owners, department experts, IT staff, and ensure that you engage as many people as possible. 

 

Allowing your organisation to better understand what everyone requires and what will be required of your staff to ensure that your upgrade goes smoothly. By ensuring that you have the appropriate resources and plans in place, you will significantly increase the chance of a successful implementation.

 

With the introduction of Microsoft Dynamics 365, they now offer three license levels, dependant on the access required. Dynamics 365’s applications have three, plus a dedicated license for devices. 

 

Full Users: Gives full access to all features.

Operations Activity: Users can perform transactional tasks but cannot access all features.

Team Member: For users that don’t require all features, allows users to view & analyse data while giving them the ability to carry out minor tasks like time entry.

Hopefully, this information gives you a better understanding of the upgrade from AX 2012 to D365. If your software support has expired, and you are not considering an upgrade to Dynamics 365 Finance & Operations.

 

Feel free to contact us about Dynamics AX Support. Unlike other Microsoft Dynamics 365 consultants, we prioritise customer support regardless of the software version. DFSM Consulting focuses on providing you with the support you deserve to keep your system up and running. 

What Executive Management Need to Know

What Executive Management Need to Know

The quality of the management of the consulting partner does not guarantee successful implementation. In fact, it’s the quality of consultants which is the biggest part of the successful implementation,

The Estimates given by the vendor at the start of the project in terms of the duration of the cost may need to be revised at the analysis and at the design stage to set the right priorities and to set the right expectations.

The ERP implement should be focused and should be gauged towards the organisational business and financial strategy, it is very important to understand by the senior management why they are doing this implementation, that means they need to answer some key questions and they need to know the most common and important factors,

The other thing they need to consider is that if you are implementing an ERP because they want to increase management control and greater visibility across the whole organisation and across all department

The last thing is the whole origination should be engaged and the users and the management should be engaged with the partners and management should ensure that all information & feedback and requirements should be provided to the partner or consulting company in a timely manner to avoid any delays

Success and Failure Factors of ERP Implementation

Success and Failure Factors of ERP Implementation

Statistics show that an estimated 75% of ERP projects fail. This statistic is a very frightening one. An ERP Failure does not mean that your plan doesn’t go live and that you are not able to operate. Failure could mean a wide range of things, these may include.

Lack of Management Participation

One of the significant failures for an ERP implementation is the lack of backing from management. An ERP implementation is a very complex and in-depth process, and you need to ensure that everyone in your organisation is involved and participating to guarantee that your ERP implementation is a priority. Or there is an increased chance of delay or failure.

Lack of Planning

Without a sophisticated high level, advanced planning phase, your organisation can have the wrong assumptions and ideas. Or even underestimate the amount of change your business will experience. Without proper planning, due to the complexity of the software, the plan for a successful ERP implementation. As a result, details need to be specific, detailed and realistic or your company is at risk of a failed ERP implementation. Without that planning, you can be lead to unrealistic expectations.

Unrealistic Expectations

Once meeting with your vendor regularly, they will provide your management with the details. Ensuring they are aware of what processes it can enhance after an implementation. Realistic expectations are something that needs to be discussed early on in execution to make sure that management knows what benefits an ERP system will offer their organisation.

Extensive Customisation

Microsoft Dynamics 365 is very customisable, with thousands of add-ons and modules you can integrate from AppSource. However, Unfortunately, some businesses try to Over-customization which means increased cost and time spent on, integrating and customising the ERP. It is essential that before beginning an ERP selection process. The business processes that need to be improved need to be discussed and a plan in place to avoid an implementation failure

Lack of Training

Even if you have planned out well, you know your expectations and are using a standardised ERP system. To Clarify without in-depth user training, or with delayed user training far into the implementation, there is a potential for failure within your business. Businesses leave user training to the end of the project because they are so focused on other aspects. By engaging your employees early within the process, regardless of what department they work in, they will be able to learn basics and have a better overview of the system. Therefore by allowing them time to train and get used to the software.

At DFSM Consulting we are renowned for successful implementations. As we ensure that our clients have a broad understanding of what entails in an ERP implementation to ensure both parties are equipped.

With the right information for a successful implementation. At DFSM, we allow your organisation to take ownership of the ERP Project rather than just receiving another product from any vendor.

If you are concerned, you have a failing ERP implementation; we can provide you with a strategic planning session to discuss options and solutions. Contact us Today for more information about ERP implementations.

 

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