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ERP Cost:ERP support to achieve more cost-efficient ERP

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  • "ERP Cost:ERP support to achieve more cost-efficient ERP implementation, maintenance and growth.High customization of ERP systems had a negative impact on ERP systems’ usability andaccessibility (Jorge Flores Callejas Cihan Terzi Joint Inspection Uni..

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  • "ERP Cost:ERP support to achieve more cost-efficient ERP implementation, maintenance and growth.High customization of ERP systems had a negative impact on ERP systems’ usability andaccessibility (Jorge Flores Callejas Cihan Terzi Joint Inspection Unit Geneva 2012). It also includes associated or hidden costs, such as data cleansing; documentation update;migration, validation and reconciliation of data; interfaces development between legacyinformation systems and the ERP; user testing; deployment management; ongoing trainingcosts; and a loss of staff productivity following the implementation of the system, which aremainly borne by ERP business owners (Jorge Flores Callejas Cihan Terzi Joint InspectionUnit Geneva 2012).Based on the information provided by the organizations, the cost of ERPimplementations in the United Nations system amounted to at least US$712 million. Thisfigure does not include annual recurring maintenance costs, which amount to at least US$66million per year. ? Hardware acquisition, maintenance and ongoing change/growth costs, pre- and post- implementation; ? Software acquisition and maintenance costs, pre- and post-implementation; ? Personnel costs for the ERP implementation, maintenance and ongoing change/growth,pre- and post-implementation; ? Network and communications acquisition costs, and maintenance and ongoingchange/growth costs post-implementation; ? Facilities and other acquisition costs. (Jorge Flores Callejas Cihan Terzi Joint Inspection Unit Geneva 2012). Market Size: Solutions designed for a niche market will have higher prices because thepotential customer base is smaller.(Michael Bethany President, Avanti Grade InformationSolutions, LLC) . Size of the organization:As measures of organizational size she tested the number ofemployees and revenue. Both were found to be useful (Catherine Equey1, Rob J. Kusters2,Sasha Varone1 and Nicolas Montandon1). Size of the configuration: The size of the configuration effort is expressed in the number ofmodules or sub-modules that are to be implemented. Size of the implementation:Implementation effort is expressed by the number of users involved, Figure 2.3 Pictorial Representation and Explanation of Difference heads of Cost FactorsERP CostPre Implementation Cost Post Implementation CostSoftware License CostConsultation CostMaintenance CostNetwork Acquisition CostOn Going CostPre implementation cost:Implementing an Enterprise Resource Planning (ERP) system is expensive and timeconsuming. A substantial cost is associated with pre-implementation involvement andtraining designed to encourage acceptance and effective implementation of the system (SueAbdinnour-Helm a,*, Mark L.Lengnick-Hall b, Cynthia A.Lengnick-Hall). Consultatio cost:Consultation cost is such type of the cost that we paid when we purchase ERP system so thiscost is paid to trained our worker about this software so this cost is very important cost whenwe purchase software Network Acquisition Cost:Network acquisition cost is such cost that we paid when when we purchase this ERP softwareso this cost is specially paid for build of network in the organization about this system.Hardware Acquisition Cost:The total cost of ownership of an ERP consists of software and hardware acquisitioncosts,implementation costs associated with the deployment and roll-out of the system, operationcosts pertaining to the maintenance of the system once it has been deployed, and ongoingchange and growth costs regarding the upgrade of the system and addition of new functionalities. It also includes associated or hidden costs, such as data cleansing;documentation update; migration, validation and reconciliation of data; interfacesdevelopment between legacy information systems and the ERP; user testing; deploymentmanagement; ongoing training costs; and a loss of staff productivity following theimplementation of the system, which are mainly borne by ERP business owners.(JorgeFlores Callejas Cihan Terzi)Development cost:Development cost is such cost that we paid long life use of the ERP system. This cost wepaid through all our ERP life because this system is need to upgrade all our time. In this costmore than cost of ERP system is use because we need to develop all our organization systemand we need to change the old system in organization so this development cost is veryimportant cost.Software licence cost:ERP licence costs vary depending on the geographic region and the time of theimplementation, early ERP adopters benefiting from higher discounts than late adopters. Thelicence pricing models are very complex, and may involve costs by central processing unit(Jorge Flores Callejas Cihan Terzi)Post implementation cost: "

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