The two main contributing factors to the cost of a new ERP system are the purchase price of the software itself but also the support contract that comes along with it. Companies are quite often so focused on the capabilities on the software itself that they almost completely forget about the support and how important it will be after the initial installation. Software providers have different ways of structuring their annual support contracts, so be sure to ask how it works and what is included.
Is it infinite or tiered support? This is a very important concept that must be completely understood as it could come back to haunt you if not considered properly. Some software providers still offer a tiered support structure. To put it simply, different tiers entitle you to different levels of support. These are often defined by call limits, email limits and even content restrictions. Infinite support on the other hand speaks for itself. It gives users full access to the support desk, enabling them to make as many calls and emails as they wish, at no extra charge.
How much are you paying for your support? Again, a very important factor to consider. Software providers offer different approaches towards this. Some base it on a percentage of the original sale, some base it on a per user charge, while others base it on the tier of support that you are on. Be sure to ask what the implications are of adding extra users and even question how prices have fluctuated in recent years. For providers that offer ERP systems in modular format, find out how adding more modules at a later date can affect the cost of your support contract.
Development and report changes. Technology in this day and age is always on the move. Ways of thinking and the abilities of computer systems are forever advancing and so should your ERP system. Development should contribute to an important part of your final decision. The purchase of an ERP system can be compared to the purchase of a property as it is an investment that should endure the test of time. By this I mean it should meet your immediate criteria but you should also take into account what may be needed in the years to come. Questions such as how often are new builds released, are you entitled to new builds free of charge, and how feature requests are made are important to ask. Overtime, not only will technology move forwards, but so will your company ~ there is a good chance that at some point you will need reports created or modified. Again, find out if these changes are covered in your support contract, or if you have to pay extra for each change.
Customer care. There is nothing worse than ringing someone for support and finding them to be unhelpful or sometimes even clueless towards your problem. Being able to determine the level of customer care before actually committing to a provider can be difficult. One thing you can do is to ask the software provider for a list of their customers who you can contact directly as a point of reference. These people are in a good position to give you a review of the companys support. Be sure to ask questions such as how long report modifications and issues take to resolve, along with how competent they are in discussing issues and workflows that are relevant to your company. Amongst the customer list that the software provider has sent you, try and find companies that trade in the same or very similar industry. The last thing you want to be is a guinea pig for that provider as they try and expand into a new sector!
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