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Maintenance cost:Maintenance and upgrade costs for an ERP

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  • "Maintenance cost:Maintenance and upgrade costs for an ERP tends to be missing from the ERP implementationprojects’ budgets, despite the fact that they constitute the biggest cost proportion in an ERPlife cycle, and that there is a direct causal rela..

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  • "Maintenance cost:Maintenance and upgrade costs for an ERP tends to be missing from the ERP implementationprojects’ budgets, despite the fact that they constitute the biggest cost proportion in an ERPlife cycle, and that there is a direct causal relationship between the initial customizationsmade to an ERP and the future maintenance and upgrade costs of the system. (Jorge FloresCallejas Cihan Terzi)Ongoing cost:ERP ongoing cost means such cost that we paid the total life in ERP system usage. This costis continues change due to the change in this system like if any updating come in this systemthen we change this system and paid updating cost same as when any problem occupancy inour business like our system not do right working then we paid the maintenance cost our ERPsystem. In this cost our licence cost is come when we renew our ERP licence. In this costcome ERP training cost cost that we paid continue So if the range of mid-market ERPsoftware systems range from $250K to $1M, you are looking at annual maintenance costs ofaround $35K to $200 depending on your ERP software solution. On average the annualmaintenance cost for your ERP software is around $425K. Annual internal costs to maintainyour ERP system is the next component, and also the most expensive ongoing cost of yourERP system. Annual internal costs include your in house employees dedicated to keep yourERP running which includes minor modifications and tweaks, IT salaries, and training. Theaverage annual internal costs for mid-sized companies are around $470K. The third majorcategory of costs for your ERP system are the annual external costs paid to third parties andoutside consultants, IT vendors and contractors to modify and support your enterprise software. The average annual external costs to maintain your enterprise resource planningsystem is around $325K for mid-sized companies. Tallying up these three cost areas, thesticker shock is usually quite sobering to IT managers and corporate stewards holding thecompanies purse strings. With an average annual costs ranging from $800 to well over $1Mjust to maintain an ERP system to meet your business needs and complete in the marketplace,when sourcing the right ERP solution for your organization, its critical to look at the annualmaintenance costs and not the sticker price of the software when conducting your ROIanalysis and go into your choice with eyes wide open. (Mark Jeffrey).Case Discussion two companiesIn this case study we want to discuss two main companies IZHAR GROUP OF COMPANYand COUNTRY JUICE in Pakistan.IZHAR GROUP OF COMPANY IZHAR Group is in its 6th decade of pioneering construction operations since its inception in1959, when it was established by the late Engineer Izhar Ahmad Qureshi. The consistentcontributions in the domain of engineering and construction to date see the organisationgraduated into a multidimensional establishment exhibiting command over a diverse range ofinnovative cum economical construction methodologies. The group cherishes successfulcompletion of numerous large industrial, commercial, educational and high-rise buildingprojects along with infrastructure and development works to its credit.We at IZHAR Group are blessed with unmatched diversity in the vicinity with eleven pre- cast factories spread all over Pakistan; having erected more than 400 million sq.ft. Area covered by our products, supported by a very resilient design department. Following laurelsof being pioneers in the field of pre-cast and pre-stressed concrete elements, we also treasurethe honours of being the leaders in developing state-of-the-art pre-engineered steel buildingsystems at IZHAR Steel which already enjoys supply of more than 8.5 million sq.ft. Of builtarea, to its recognition. The recently established IZHAR Housing is dedicated to bring thelimits of luxurious living at affordable prices. IZHAR Energy Services is bringing renewableenergy expertise to our environment. IZHAR Construction exhibiting quality construction atits best remains the main flagship, spearheading the Group activities under one roof, on well- defined professional, ethical grounds.COUNTRY JUICEMaaher Food Industries (Pvt) Ltd, is one of the pioneering groups of qualitypacked Juices and Diary Products in Pakistan. Since their arrival in 1986, the company'sinitial success gave rise to the highly refreshing "Pine Cool" which was considered to bePakistan's most trusted and favourite drink. Today the company has significantly expandedand is proud to boost an extensive and popular range of premium Pure Juice, Nectars, JuiceDrinks and Dairy based Products, all of which are primed with the highest standard ofinternational quality control. Adhering to these strict principles and measures, utilizing stateof the art processing and packing equipment, Maaher Food Industries markets numerous highquality products in "Tetra-Brick" aseptic packaging, offering refreshment and healthynourishment to consumers all around the globe. From the heart of Pakistan, to the rest of theworld, Maaher Food Industries continues to bring you unsurpassed excellence with itsongoing labours and efforts under the brand name, "COUNTRY”. Maheer Food Industries (Pvt) Ltd is one of the pioneers in introducing highquality packaged juices in Pakistan since it started its operations in 1986.Thecompany’sinitial success was set in motion by the launch of a fruity and highly refreshing drink “ PINECOOL”. Today the company boosts of an extensive portfolio comprising manynutritious pure fruit juices, nectars and still drinks in 250 ml and 125 ml packing. Thecompany offers three brands, “Country” Zulu” and “Sunday” to cater to all the needs andrequirements of different segments of society for both adults and children. Utilizing state ofthe art processing and packaging technology the company offers its products in “TetraPack” aseptic packaging. The company offers highly nourishing, refreshing and tasty juicesto its consumers in Pakistan and world wideERP cost discuss in IZHAR GROUP OF COMPANY In this study we want to discuss the IZHAR GROUP OF COMPANY total cost of ERP thatthey pay. In IG Company use this system first time in 2013 and before this period thiscompnany use other software. After that this company need to use the ERP software in ourorganization so this company purchase this software AZM COMPUTER SERVICE (PVT)Ltd. This AZM Company is the famous company in the sale of this software. This companystate in 1978 and this company work in different field like Information Technology ProjectManagement. So IG Company purchase our software for this company and IG company paytotal ERP cost PK 4 Million and this IG Company purchase total 8 modules. This IGCompany paid PK 5 Lack per module fees and this company paid total consultation fees PK 6Lack and this company not do any change in this software. So all that cost that pay the IGCompany our all in total process of ERP implementation.Links Department Wise in IG Company HRMProductionDepartmentDepartmentPurchase G.L DepartmentERPFixed Asset SalesDepartmentDepartment "

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