When a company manager decides to set up or change their business management software, the question of the budget to be allocated quickly comes up. This is completely normal: business management software is the engine of the information system. It enables significant gains in the company’s performance.
The allocation of a budget and the calculation of ROI are therefore essential steps. To build this budget, it is important to understand the main methodological principles that your integrator will propose to you, and to distinguish between the two main budget lines: recurring fees and integration fees.
1. Recurring fees for the management software
This refers to the budget to be allocated each year:
- User licences
- Hosting / Managed Services
- Maintenance of the software core (and support for upgrades) by the publisher, and maintenance of specific developments carried out by your business management software integration partner.
Estimated budget for 50 to 100 users: about $10,000 to $30,000 in licence fees (depending on the software) + hosting / maintenance (depending on your requirements).
2. Business management software integration costs
Step 1 – Needs definition and design budget
This is often a budget item neglected by companies that think defining the needs of the various departments in detail in advance is an unnecessary step. Let’s be clear: if you neglect this initial scoping phase, you are setting your business management software project up for failure.
This Definition & Design step involves your integration partner identifying the needs of each of your company’s departments and translating them into technical and functional requirements. It also focuses on supporting your company and your employees through change management (remember that business management software has a major impact on all your internal processes: business management software that is well used by all your employees leads to performance gains in every area of your company!).
In addition, the framework will make it possible to specify the number of days required for the integration service (see next point), even though a budget envelope should already have been provided to you beforehand.
Estimated price: about $4,000 to $9,000.
Step 2 – the cost of business management software integration
This step consists, on the one hand, of installing the business management software core (i.e., the business management software in its standard version) and, on the other hand, of adapting it to your company’s processes and specific characteristics.
This will, of course, involve a number of specific developments related to your business that your integrator will carry out, as well as the connectors (Outlook, Prestashop gateways, etc.) that will be set up with your entire information system.
Traditionally, this integration step is divided into several batches (which you will have prioritized with the help of your ERP integrator) and includes development, testing and acceptance phases.
Do not underestimate the support your partner will need to provide, or the time you will need to devote to the project on your side: steering meetings, monitoring and interactions, etc. will ensure your project’s success!
Estimated price: from $700 to $1,500 per person-day.
Step 3 – Business management software training costs
Once the integration has been completed, users must be trained. Your partner should not settle for training on the standard business management software, but must train your employees on the version actually deployed (including the additional developments and IS connections that were implemented).
Beyond the interface, your partner must provide you with real change management to ensure that all your departments adopt the new business management software tool and the company’s new processes.
Estimated cost: about $4,000 to $8,000.
Step 4 – Launch costs
This step is essential. In addition to the training and change management described above, your business management software partner must be at your side during the first few months after the tool is launched.
The launch budget will therefore include on-site assistance, ongoing support (by phone or on-site) to meet users’ needs, and possibly additional training sessions if necessary.
Estimated cost: about $2,000 to $5,000.
When you add these different steps together, you may arrive at a significant total cost. That’s normal. If not, ask yourself some hard questions: you may have underestimated certain items, which could put your business management software project at risk.
But rest assured: if you choose the right partner, they will be able to guide you effectively in setting up your business management software project.
Similarly, if you are concerned that you may not have the necessary financial resources, discuss this with your integrator. They alone have the experience and perspective to help you prioritize the different batches: which elements are essential for start-up and which ones can be integrated later on.
So, are you ready to start?