With unprepared buyers and odds favoring vendors, it is no surprise that enterprise software costs more than budgeted and seldom meets expectations. Put another way, for every $1 skimped on preparing for the software purchase you can expect to pay about:
$10 on change orders if those requirements are discovered during implementation.
$100 in business disruption costs if those requirements are discovered when going live.
$1000 in missing functionality work-around costs over the life of the software.
In the chart below the red arrows show the five costs of poor software purchasing:
The extra cost of the software or ERP implementation taking longer than planned.
The hidden costs incurred when the implementation schedule slips.
The business disruption costs incurred when going live with new software and that software does not adequately meet the business requirements.
The hidden costs incurred over the life of the software where the functionality is not meeting the real business requirements.
The growing hidden cost of unachieved business goals caused by software not adequately meeting the REAL business requirements.
These unanticipated software acquisition costs can be substantial, even to the point of generating a negative return on the total investment. Rather avoid these costs with an adequate software purchasing process upfront.
If you want to discuss a potential software or ERP purchase, click the [Contact Wayferry] button below. With no obligation on your part, we can help you explore maximizing the return generated by a proposed ERP replacement.