Tuesday, April 08, 2008


What we learnt today can be summed up in two words: SAP & implementation


SAP is an ERP software based on a three-tier (application, data & presentation are different). This software consists of core activity functions (like finance & control, sale & marketing…) but also bolt-ons (additional applications connected to the ERP). It has several features including the possibility to track down what has been done (audit trail)


Before deciding to implement of an ERP, three major options must be considered: the time frame, the human resources and the level of customization. The implementation can be radical (bigbang) or more incremental (phased or mini bigbang). The human resources can come from inside or outside the company. And at last, you can choose the level of customization you want for the technical environment or the processes of your software. Every option depends on the type, the processes, the sector, the financial and human resources of the company.

As somebody asked on Monday, I had a look at some previous courses and found out some data concerning the potential costs of an ERP. This information provided here is a translation from a 2006 course of M.Saada. Take the figures as they are: approximations!

The minimum cost offered by the major ERP developers for the IT infrastructure, using licences of the softwares and staff training is $500 000 but cheaper packaging with simpler modules are available for SMEs.

Smaller suppliers offer softwares from $75 000 and $500 000

In average, large corporations spend US$ 15 million. This represents $ 53 000 for each users (for hardware, software, implementing & consulting staff, 2-years support). The implementation lasts from 6 months to several years depending on the width of the project.

These expenses can approximately be divided into hardware for 14%, software for 17,5%, internal staff for 23% and 45,5% for professional services.

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