SAP ERP Project Costs
Name of Item & Percentage
A Breakup of Project Costs from a SAP ERP - 200 User Installation - 20 + locations Project for a Company in the Discrete Manufacturing Segment in India had the following components:
Hardware Cost - 30 %
LAN / WAN Connectivity - 20 %
SAP Software License - 20 %
SAP Implementation - 15 %
SAP Training - 10 %
Other Software - 5 %
Total Project Costs - 100%
A typical ERP Project would have Cost Breakups as per the following Percentages :
Hardware 30 %
Software 30 %
Services 30 %
Maintenance - 10 %
How much will SAP cost?
Everyone I know thinks of SAP as BIG, expensive, slow, cumbersome but ultimately a safe bet. The company burnishes its solid, Germanic image, focusing on its engineering prowess and attention to detail. All of these are good things but for many SAP has created an image that makes them perceptually hard to do business. There’s no doubt that SAP knows how to play hardball but what is it doing to get people more interested in its products?
Recently it opened up its ByDesign microsite where you can configure a broad set of application requirements and get a costing there and then. I’m on record saying that I like what they’re doing. The other day, I saw they have partnered with Seidor in the UK to provide a configurator for Business All-in-One, one of its mid-market offerings. I tried it out, setting up a 100 person business with 80 users for a service organization. The results are per the snapshot below:
As you configure your way through, there is plenty of help to show you what each module represents.
The ’suggested’ price is £251K, which doesn’t sound bad. Of course it misses out on the the maintenance element that has to be factored in, there’s no direct mention of database and the services element is pure guesswork. But it’s a start and a way of helping you understand the components and their costs for an implementation. You also have to factor in that the suggested solutions are broad brush, vanilla style offerings that don’t take into consideration any customizations or industry specific requirements you might need. Even so, it’s a start and to be welcomed for the effort in price transparency.
The part that’s most impressive though is that unlike the ByDesign microsite, you don’t have to go through a sign up process. You are left with enough to get you going but also enough to tempt you into picking up the phone to Seidor. SAP? I hope you’re listening. Seidor’s approach is better.
Process Costing
It's no secret that companies are looking for ways gain a competitive edge. Business process management and re-engineering (BPM/BPR) can give you a sustainable advantage by helping you identify your business process costs, improve your understanding of company-wide expenses, and reveal problem areas so you can eliminate bottlenecks and wasteful activities. In the current economic climate such inwardly-focused cost analysis has the potential to provide the type of competitive cost advantages that outward-focused activities would struggle to achieve.
By leveraging the SAP BusinessObjects Profitability and Cost Management application – which works hand-in-hand with your enterprise performance management and BPM initiatives – you can ensure that you have a complete understanding of costs across your organization.
Our advanced Web-based applications remove the drudgery of collecting non-system driver data, making it easier for you to produce reports much more frequently, so you can gain an enterprise-wide focus for continual improvement. And with the application and other enterprise performance management solutions, you can:
* Focus BPR initiatives on areas and processes with the most significant costs
* Identify – and remove – non value-added activities such as reworks
* Rationalize work processes by assigning them to the right people
* Assess the effectiveness of BPM/BPR programs
* Establish definitive key performance indicators (KPIs) by measuring and tracking the unit costs of key business processes
Name of Item & Percentage
A Breakup of Project Costs from a SAP ERP - 200 User Installation - 20 + locations Project for a Company in the Discrete Manufacturing Segment in India had the following components:
Hardware Cost - 30 %
LAN / WAN Connectivity - 20 %
SAP Software License - 20 %
SAP Implementation - 15 %
SAP Training - 10 %
Other Software - 5 %
Total Project Costs - 100%
A typical ERP Project would have Cost Breakups as per the following Percentages :
Hardware 30 %
Software 30 %
Services 30 %
Maintenance - 10 %
How much will SAP cost?
Everyone I know thinks of SAP as BIG, expensive, slow, cumbersome but ultimately a safe bet. The company burnishes its solid, Germanic image, focusing on its engineering prowess and attention to detail. All of these are good things but for many SAP has created an image that makes them perceptually hard to do business. There’s no doubt that SAP knows how to play hardball but what is it doing to get people more interested in its products?
Recently it opened up its ByDesign microsite where you can configure a broad set of application requirements and get a costing there and then. I’m on record saying that I like what they’re doing. The other day, I saw they have partnered with Seidor in the UK to provide a configurator for Business All-in-One, one of its mid-market offerings. I tried it out, setting up a 100 person business with 80 users for a service organization. The results are per the snapshot below:
As you configure your way through, there is plenty of help to show you what each module represents.
The ’suggested’ price is £251K, which doesn’t sound bad. Of course it misses out on the the maintenance element that has to be factored in, there’s no direct mention of database and the services element is pure guesswork. But it’s a start and a way of helping you understand the components and their costs for an implementation. You also have to factor in that the suggested solutions are broad brush, vanilla style offerings that don’t take into consideration any customizations or industry specific requirements you might need. Even so, it’s a start and to be welcomed for the effort in price transparency.
The part that’s most impressive though is that unlike the ByDesign microsite, you don’t have to go through a sign up process. You are left with enough to get you going but also enough to tempt you into picking up the phone to Seidor. SAP? I hope you’re listening. Seidor’s approach is better.
Process Costing
It's no secret that companies are looking for ways gain a competitive edge. Business process management and re-engineering (BPM/BPR) can give you a sustainable advantage by helping you identify your business process costs, improve your understanding of company-wide expenses, and reveal problem areas so you can eliminate bottlenecks and wasteful activities. In the current economic climate such inwardly-focused cost analysis has the potential to provide the type of competitive cost advantages that outward-focused activities would struggle to achieve.
By leveraging the SAP BusinessObjects Profitability and Cost Management application – which works hand-in-hand with your enterprise performance management and BPM initiatives – you can ensure that you have a complete understanding of costs across your organization.
Our advanced Web-based applications remove the drudgery of collecting non-system driver data, making it easier for you to produce reports much more frequently, so you can gain an enterprise-wide focus for continual improvement. And with the application and other enterprise performance management solutions, you can:
* Focus BPR initiatives on areas and processes with the most significant costs
* Identify – and remove – non value-added activities such as reworks
* Rationalize work processes by assigning them to the right people
* Assess the effectiveness of BPM/BPR programs
* Establish definitive key performance indicators (KPIs) by measuring and tracking the unit costs of key business processes
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