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 selecting the software you can expect to pay about:
$10 in extra implementation costs.
$100 in business disruption costs when going live.
$1000 in the ongoing cost of missing functionality over the life of the software.
In the chart below the red arrows show where the costs of poor software purchasing are incurred:
The extra cost of the software or ERP implementation taking longer than planned.
The hidden cost of delayed returns when the implementation schedule slips.
The cost of business disruption when taking the new software live.
The hidden costs of not meeting expectations (i.e. missing functionality) which are incurred over the life of the software.
The growing hidden cost of not supporting the business strategy, e.g. raising the bar on your competitors, of being average, and of falling further and further behind the market leaders.
These unanticipated software acquisition costs can be substantial, even to the point of generating a negative return on the total software investment. However, they can be avoided with an adequate software selection project up front. If you would like to discuss a potential software selection project, click the [Contact Wayferry] button below. We can help you explore maximizing the return generated by a major software purchase.