The average ERP implementation cost and Odoo cost estimation
ERP system implementation can be very costly. But here are a few tips on how to invest and save money on Odoo pricing and Odoo average cost.
ANALYSIS COSTS
The vendor charges on hourly basis, so before you spend a fortune discussing your requirements, look at your pain points and what you need and approach your ERP system implementation phase by phase.
On sample Odoo open source ERP system implementation can be as:
- Phase 1: CRM, Sales.
This allows you to efficiently handle leads, generate more sales, create quotations and follow up - Phase 2: Invoicing and basic accounting.
This allows you to invoice your customers and get paid.
NOTE: phase 1 and 2 could be merged. - Phase 3: Human resource management (HRM), leave requests, attendance and so on.
- Phase 4: Advanced accounting: e.g. integrate the legal accounting for the country you operate in, analytical accounting, Lebanese payroll, Lebanese accounting, Lebanese VAT and so on.
- Phase 5: business specific implementation like project management for services companies or manufacturing, OEE (Overall Equipment Efficiency) – MRP modules for manufacturing companies
CUSTOMIZATION COSTS
A big chunk of your ERP project will be used in the customization of ERP. Avoid developing code to fulfill your requirements, or replicating an existing system in order to minimize costs.
- In the case of Odoo implementation cost for example, try using Odoo’s out of the box features and the extra modules available, instead of adding something very specific.
- Avoid heavy customization to replicate another system. Sometimes it makes more sense to develop a completely new system based on other frameworks, then to try and replicate. If you are going to customize 80% of your features, then you are better off not getting ERP.
DATA INTEGRATION COSTS
The cost of data integration is usually unaccounted for when it comes to expenses. In order to cut down on the cost of migrating your data:
- Ask your vendor for import templates and try to do it yourself.
- Provide your complete data for proper analysis, as partial data will cause confusion. This minimizes the re-doing of the work, thus lowering the costs. Having to revise the data import or integration several times has its costs.
TRAINING COSTS
You may not be able to use your system properly, even after completing development.
- Train the trainers: follow the concept of super users or train key people in your organization who will be able to train the whole team and keep the know how.
- Create a written manual process to cut on future costs, which can be created by your trainers (this can also be a series of videos).
SUPPORT COSTS
Organizations need constant support to run the system effectively. It is best to have a clear support plan in place, with many layers. Savings in the support costs can be achieved via two strategies:
- Selecting a well established and well reputable partner to start the implementation then follow up on the maintenance. Thus, you don’t need to change partner and then have them re-learn your processes, which will cost you time and money.
- Implementing an escalation system of two levels (or more based on your business needs):
- Level 1: all request for support passes by your team and company. Thus train super users who are able to answer your company’s functional questions. Most of support requests are usually in this level.
- Level 2: all requests that are beyond functional, bugs or enhancements will be routed to the ERP implementation partner in charge of the maintenance. Usually few of those requests goes to level 2 thus lower costs.
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