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Q: Switching ERP systems and the costs involved ( Answered,   0 Comments )
Question  
Subject: Switching ERP systems and the costs involved
Category: Computers > Software
Asked by: sputnick-ga
List Price: $2.00
Posted: 13 May 2004 15:37 PDT
Expires: 12 Jun 2004 15:37 PDT
Question ID: 346038
I am looking to find out the average or estimated costs when a company
changes over it's ERP system to a new ERP System? Some of the cost
would be training, down time, loss of productivity. If you could find
a report or a document containing this information it would be very
useful.
Answer  
Subject: Re: Switching ERP systems and the costs involved
Answered By: omnivorous-ga on 14 May 2004 09:47 PDT
 
Sputnick --

One of the best sources for IT implementation is CIO.com, the website
for CIO Magazine.  It's well-organized with links to lots of
resources.  I'd recommend a site search using the terms "switching
ERP" to determine whether or not there are some things that you'd like
to purchase:
CIO.com
Home Page
http://www.cio.com

They have a couple of articles that are relevant, one of the better
ones being a summary of AMR Research's report on 109 companies that
have done an ERP upgrade.  It breaks down the costs by categories like
planning, testing, data conversion -- all issues that one would face
in a change of ERP systems as well as in an upgrade:
CIO.com
"Cost savings alone won?t justify an ERP upgrade" (Surmacz, April 3, 2002)
http://www2.cio.com/metrics/2002/metric348.html

Here's CIO's executive guide on ERP:
"The ERP Life Cycle: Planning, Execution and Post-Implementation," $395
http://www.theciostore.com/guide_product.asp?id=133

AMR Research is the company that did the 2002 study referenced by
CIO.com.  The study is being updated and they are seeking input --
with a promise to provide a copy of the research report to
participants:
AMR Research
"AMR Research Survey: ERP Upgrade--or Not?" (May 5, 2004)
http://www.amrresearch.com/Content/view.asp?pmillid=17257&docid=11609

The original report is summarized here:
AMR Research
"ERP Upgrades: They're About New Functionality, Not Cost Savings"
(Bacon & Bijesse, May 3, 2002)
http://www.amrresearch.com/Content/view.asp?pmillid=10408&docid=9028

Note too that a Google search strategy using "changing ERP vendors"
produces a limited number of results -- but you might find them
interesting.  They tend to deal with detailed cost, integration and
feature issues.

Finally, there's a good piece about ERP and its costs that isn't on
the web (the link is broken) but is still in the Google cache.  You
can access it with a search strategy of "changing ERP software" or
type in the title:
"Structuring and Modeling Knowledge in the Context of Enterprise
Resource Planning," (Rosemann & Chan, undated)

The two authors teach are at the Information Systems Management
Research Center, Queensland University of Technology in Australia.

Best regards,

Omnivorous-GA
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