18. Costs of ERP (cont’d) Average Cost To Install ERP – does NOT include internal costs for training process changes, attrition, etc. Source: CIO Magazine Oct. 15, 1999 Largely consulting and parameter ‘tweaking’. These costs are potentially ‘bottomless’. Expenditure Amount (millions) Percentage Hardware 1.46 13.8 Software 1.86 17.5 Internal Staff 2.46 23.2 Professional Services 4.82 45.5
19.
20. Benefits of ERP (cont’d) Expected and Actual Benefits Benefit Expected Actual Shorter cycle time 19% 31% Improved productivity 24% 31% Lower IT costs 24% 11% Better cash management 24% 13% Personnel reduction 43% 33%
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