When a company manager decides to set up or change his business management software system business management software, the question of the budget to be allocated quickly comes up. This is perfectly 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 the ROI are therefore a necessary step. To build this budget, it is essential to understand the main methodological approach that your integrator will propose to you, and to distinguish between the two main budget items: 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 assistance with upgrades) provided by the software publisher, and maintenance of the 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 solution design budget
This is often a budget item neglected by companies that think defining the detailed needs of the various departments in advance is an unnecessary step. The reality is this: if you neglect this scoping phase, your business management software project is almost certain to fail.
This Definition & Design phase involves your integration partner understanding the needs of each department in your company and translating them into technical and functional requirements. It also aims to support your company and your staff in change management (remember that business management software has a significant impact on all your internal processes: business management software that is well used by all your employees leads to performance gains across 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 price of business management software integration
This step involves, on the one hand, installing the business management software core (i.e. the business management software in its standard version) and, on the other hand, adapting it to your company’s processes and specific requirements.
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 phase is divided into several batches (which you will have prioritised with the help of your ERP integrator) and includes development, testing and acceptance phases.
Do not underestimate the support that your partner will need to provide you, and the time you will need to devote to the project on your side: steering meetings, monitoring and interactions, etc. will ensure the success of your project!
Estimated price: from $700 to $1,500 per man-day.
Step 3 – Business management software training costs
Once the integration has been completed, users need to be trained. Your partner should not be content with training on the standard business management software, but must train your employees on the actual version deployed (including the additional developments and IS connections that have been put in place).
Beyond the user interface, your partner should provide proper change management support to ensure that all your teams 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 critical. On top of the training and change management described above, your business management software partner should be by your side during the first few months of the tool’s launch.
The launch budget will therefore include on-site assistance, ongoing support (by phone or on-site) to address users’ needs, and, where necessary, additional training sessions.
Estimated cost: about $2,000 to $5,000.
Adding up these different stages, you may arrive at a sizeable overall cost. That’s normal. If not, it’s worth asking yourself some hard questions: you may have underestimated certain items, and this could ultimately jeopardise your business management software project.
That said, if you choose the right partner, they will be able to guide you confidently through the implementation of your business management software project.
Similarly, if you are concerned that you may not have the necessary financial resources, discuss this with your integrator. He alone has the experience and hindsight to help you prioritise the different batches: which components are essential for start-up and which can be integrated later on.
So, are you ready to get started?