Determining How Much Your ERP System Should Cost

Nov. 4, 2011 - PRLog -- NEW YORK, Nov. 4, 2011 –A new template document from Avante Garde Information Solutions (AGIS) details the four key factors that determine the costs of an Enterprise Resource Planning (ERP) system.  Since ERP software can greatly facilitate successful company growth and efficient operation, these initial and ongoing costs and capabilities are integral to a company’s health.  

Selecting from the many ERP products currently available that vary enormously by price, scalability and features is very difficult.  Additional features does not necessarily mean a higher price, quality or even a product that will meet a company’s specific requirements.

“The AGIS approach reduces many of these ERP selection factors to four key elements: the view, market size, degree of customization, and IT requirements,” says Michael Bethuy, President of AGIS.  He continues, “Many companies are overwhelmed by features, marketing hype and most notably, the initial and ongoing costs of an ERP system.  They frequently don’t follow a process utilizing those key elements that effectively help them assess their ERP system needs relative to cost.”

Since ERP software can range in cost between several hundred dollars and many millions of dollars for a large enterprise solution, the versatility and complexity of these systems varies enormously – as does their impact on a company.  By applying the four key factors, a company can assess its ERP requirements and compare those assessment results against different ERP products. The resulting subset of ERP products helps depict both the expected costs and overall functionality.

Below are two examples of how these key factors affect the cost of most ERP solutions:

• A solution designed to support a large number of users with very specific job functions in a niche or custom market is going to be very expensive. Most major corporations and government agencies belong to this group.

• A solution designed for a small number of users with a single, wide view of the data will typically be inexpensive.  This market is large and customization of these solutions is limited. The off-the-shelf packages available from big box retailers belong to this category.

Avant Garde Information Solutions, LLC (AGIS) was founded in 2002 to provide a proprietary and highly configurable world-class business management software solution to small-to-medium size companies.  Its president, Michael Bethuy, works closely with clients to ensure that their customized business management software solutions meet their specific requirements.



For more information about this topic or service, or to schedule an interview with Michael Bethuy, please call Michael at 212-532-1378 or email him at: michael.bethuy@agisllc.com

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Avant Garde Information Solutions, LLC (AGIS) was founded in 2002 and is located in New York City. AGIS develops customizable business management software compatible with both Mac and Windows. Our core product is the aACE Business Suite.