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TCO for ERP. Total Cost of Ownership
Click here to download this important presentation.
TCO of ERP project is based on all of the following, and not only on the cost of the ERP software.
Use this checklist to ensure that ERP implementation does not experience any hurdles.
Prevent ERP failures during ERP implementation by allocating enough budget for the ERP project.
Let us know if you would like to discuss on 'how to maximize your ROI and slash TCO'.
It is necessary to allocate money for the following Investment / Expenses:
1. Computer Server. For example, high performance computer with Xeon CPU, fast Hard disk drive, etc. 2. Network:
3. Licensed software: Most management conveniently thinks that the same is free. Well, one has to plan carefully and phase out the pirated versions ASAP.
4. Adequate electric power failure backup such as Gen. set and a UPS with capacity to support THE SERVER and the switch. Separate UPS for ERP users computers.
5. Peripherals and accessories such as Laser Jet Printer/s or Inkjet (need-based), or Dot Matrix Printer for continuous stationery printouts (for multipart stationery,
or check printing, or for Spread Sheet Reports), etc.
6. The ERP software package itself. 7. Implementation cost paid to programming / implementing professionals. 8. Consultant fees paid to IT Consultant who not only understands I. T., but also has functional knowledge of various business processes.
This may include training charges or make separate provision for training budget.
9. Essential Customization Charges. 10. Additional Customization Charges. 11. Anti-virus software and upgrade cost. 12. A separate budget for ongoing expenses such as
This is not an exhaustive list. Only major items are mentioned in the above list.
Please consult your IT manager or computer hardware supplier for accurate list.
You may need some of the items or all of the above depending on the size and need of the organization.
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