Guide to Estimating the ERP Software Development Cost
Estimating the total cost of an Enterprise Mobility Applications requires careful assessment of an array of variables which may vary from company to company.
To stay more competitive and efficient in the market, enterprises are using Mobility Enterprise Solutions that fit their core business.
“Global ERP software market is expected to grow from USD 32.44 billion in 2017 to USD 49.03 billion by 2023, at a compound annual growth rate (CAGR) of 7.45% during the forecast period”.
But they all have one gloomy outlook as their features cannot be universal. Each type of business has its own ideology and identity and it’s impossible to match one ERP solution for all business niches. Therefore it’s better to have personal ERP software. To create the Enterprise Mobility Applications product, you should follow some important steps. Let’s proceed to them.
- Determine your needs
- Build a plan for your ERP system
- Discuss how your ERP system should be built
- Storage of your ERP software
- Prepare an estimation cost
Why is ERP Important to Enterprises?
The benefits of Enterprise Mobility Management are lots more than simply automating day to day business processes. Let’s check some of those benefits that make it beneficial to invest in ERP Mobility Application Development for both startups and established the businesses.
1. Streamlined Processes
The modern ERP systems are designed to streamline all the data together, which ultimately improves the everyday bottlenecks in the business process. When your processes get streamlined, you can solve a business’s complexity easily and helps you to eliminate the tasks which are repetitive in the product cycle and then automate it.
2. Better Tracing and Control
ERP systems offer an easy approach to track your products. With this system, enterprises can oversee how their services and products are moving in the pipeline. There are various ERP mobile application development companies which offer tools that can track order, revenue, inventory, and raw material management.
3. Advanced Customer Service
Today companies are investing in custom application development to bring out changes to their customer service domain offering. They improve the company’s relation with both vendors and customers. It also strengthens customer engagement by nurturing them with more curated offers and solutions.
Factors Affecting the Cost of ERP Software Development
There are various factors that directly impact on ERP software development cost.
Number of Users and Applications
The cost of ERP systems is estimated on the basis of a number of users who will be working on it and the level of access they require. Most efficient ERP systems offerings have 30-40 applications. An ERP system should have all the features that you need and whenever you need it for your business.
The cost of an ERP system also varies on the basis of how many third-party add-ins like Enterprise IMs tool, social media logins, scanning barcode, etc. you have included in your system.
The implementation of an ERP system in a business is the one factor that greatly affects the cost of the system. The ERP implementation process includes:
Hire Mobile Application Development Company / Hire Mobile App Developer
You will be needing a team of specialist in ERP implementation including.
- Project Managers
- QA Engineer
Designing of Plan
Create a clear plan of the implementation of the ERP system so that the manager would be able to foresee the weak link and reveal the core business processes.
The plan for implementing the system should include:
- Integration Steps – Data migration, schedule, launch activity, analysis, staff migration, and evaluation.
- Upgrade Infrastructure in advance.
- Be prepare for facing the upcoming challenges and disruptions
Configure the ERP System
The whole configuration process includes:
- Analyze the gap between existing and supporting system
- Migrate the data from the existing system to the new system
- Test the system
- Document the whole functional and the technical information
- Finish the necessary upgrades
The system deployment steps include:
- Staff Training
- The support team will have to be prepared to answer queries
- The system will have to be tested
- The Go Live decision will have to be made by the management.
Once the ERP system is made live in the business, maintenance starts. This whole implementation process takes different time according to the different business sizes. Usually, this is what the timeframe looks like –
- Small Businesses – 1 to 3 Months
- Medium Businesses – 3 to 6 Months
- Large Businesses – 6 Months to 1 Year
ERP system training to your team also takes a fair amount of share.
Building a customized ERP system that exactly matches the existing business model requires some amount of programming from your in-house development or hired the best ERP software development company.
You have to upgrade your ERP system whenever the new version of the ERP solution announced. Each up-gradation requires some amount.
You will need a support team to solve and provide support for your ERP system as maybe you will come across a number of issues in the future. This will come with a cost.
Addition of emerging technologies like Enterprise Blockchain, Artificial Intelligence, IoT and others will increase the estimated cost.
The resources required to handle your entire ERP development, deployment, and implementation also adds on to the cost of the Enterprise Resource Planning system.
Average ERP Software Development Cost Table
The above-mentioned cost of ERP system development is not fixed. The cost of Enterprise Mobility Applications may vary based on various other factors, including features, tech stack, and hourly price of the hired App Developers.
At Consagous Technologies, we calculated the cost of the ERP system based on the number of hours, the value comes down to nearly $3,40,000 USD.