Big ERP Costs Sinking U.S. Businesses

CFO Research Reports Average Annual Costs of $1.2 Million
Cites Cost of Change

Companies considering major business system purchases need to beware. The latest survey from CFO Research Services has revealed the startling costs of keeping big ERP (Enterprise Resource Planning) systems in step with business changes.

Respected industry analyst CFO Research Services has taken a detailed look into the true costs and impacts on resources of sticking with big ERP.

The survey revealed that businesses of all sizes and in all industries are experiencing immense ongoing challenges and costs – averaging $1.2m each year – just to keep their ERP systems in step with essential business changes.

According to the report, initial ERP acquisition and implementation costs are substantial but “the costs continue to mount as the business evolves, requiring the ERP systems to evolve as well as to keep pace.”

"The initial software and implementation costs are just the tip of the iceberg,” commented Steve Pugh – CEO of financial management software experts, UNIT4 CODA.

The question isn’t whether a typical ERP solution supports change but, rather, at what cost?

“Change is not optional and, if you want to run your business effectively, neither are the resulting changes that your systems will need. Don’t be fooled by rosy ‘cost of ownership’ figures – demand to know the cost of change. Big ERP vendors would rather you didn’t…!”

When evaluating ERP systems, companies need to look well beyond their “sticker price”

Pugh concluded: “The CODA Financials software suite offers a more focused and flexible “best-of-class” approach to financial management, delivering superior functionality and easy integration with your other operational systems. This approach gives the finance organization a highly functional solution that can change with you both easily and cost effectively.”

Get the Truth!