The cost of ERP in India

The Cost of ERP in India

Investing in Enterprise Resource Planning for your Business.

ERP- THE NEED OF THE HOUR!

 

It is January 2020 the onset of a new decade. With the changing times we all move forward and upgrade ourselves to the new. It is an affirmation that you are living your life and believe in growth as only dreams give birth to change. 

Like in many other fields, the global business processing is going through a renaissance where everyone speaks of automation and digitisation. An ERP streamlines daily business processing such as accounting, procurement, project management, risk management and compliance and supply chain operations. This system ties together a multitude of business activities and enables the flow of data between them.

We all know “Rome was not built in a day” and so can’t be for your business process digitisation. It involves a lot of research and strategies to make a major decision such as to choose your Enterprise Resource Planning solution provider. The most common factor that arises in our mind is the cost.

How much does it cost to implement ERP in India? 

For any business, budget and cost-effectiveness is the key to growth and success. Choosing a suitable ERP provider could make or break your organisation. The objective of this post is to guide you how to choose an ERP software that’s best fit for your budget and business type. Adopting an ERP solution is not an expense but a long time investment for your business. Investing in an ERP System is in most cases a one time decision and hence a little time spent in reviewing multiple software before making a choice is advisable.

Implementing ERP is NOT sky-high!

 

When implementing ERP solutions to expedite business transformation, the owner or the decision maker should have a clear insight of the needs of its business. If you are one of the entrepreneurs who have not yet created a checklist, it’s time you unwrap the implementation challenges that are unique to your business goals.

 

ERP solution providers like Expand ERP provide one to one consultation with customers who require in-depth knowledge regarding the software. We help businesses to understand the needs and customise the software completely according to the requirements. The authoritative members, project team members and stakeholders should be aware about the critical elements affecting an ERP implementation cost.

There are various elements that are to be considered for ERP implementation:

 

    1. Scalability: The cost of ERP increases with the number of users who will be using it in the company.Training costs of the users is also depending on the numbers.
    2. Licensing: Here, the choice is totally yours. It is not compulsory to invest in a software license outright.The ERP license can be paid by monthly subscription based model also. Depending on the budget and requirements,the ERP license may be temporary or perpetual. The maintenance agreement is charged as a percentage of the license.
    3. Totally customised: Every organisation is unique and ERP implementation requires a lot of alterations and transformations which should fit into the business structure. It is best to implement a totally customised software which caters to all your organization’s unique needs.
    4. Nature of Business: Depending on the type of business -small, mid-sized or large the ERP cost is determined. For micro/ small organisations the annual cost of ERP could be anything between 6000-10,000 INR, as it is mostly online and there is no investment cost involved. For mid-sized businesses (manufacturers and wholesalers), ERP implementation starts from Rs 1,20,000 a year. The large segment businesses need to consider a budget from Rs 5,00,000 onwards annually.

According to a report,only 23% of the companies implement vanilla ERP with zero customisations done.

  1. Cost of Infrastructure: According to the deployment option-(on-premise or on-cloud option) the cost of infrastructure is based. For the cloud-based option cost will be low as all data will be stored on cloud and no hardware needs to be purchased. Further, the cost will be lower as less IT technicians will be employed .
  2. Recurrent Cost: This varies from vendor to vendor as some solution providers charge less initially but increases the cost at renewal. On average the renewal cost of ERP is 10%-15% of the total software cost.There are always chances of upgradation charges which can vary from time to time.

SUPPORT IS THE KEY TO SUCCESS

Choosing the right ERP System for a business is not only a pricing decision. It is 80% about considering the after sales support and training abilities. Your vendor should provide training to new employees and also upgrade old ones. If you are a manufacturing business in India, Expand ERP has the advantage of Low pricing and Local support on Installation and training.

MONEY SAVED IS MONEY EARNED

Investing in an ERP for your manufacturing business can increase production efficiencies, reduces the time taken by the Customers to pay, avoids pilferage of Inventory and help you get the necessary data to make decisions quickly. Investing in the right software will increase your profitability and your ability to increase your production capacity phenomenally. With Expand ERP you can take your organisation to the next level even sooner than you imagine. If you want an accurate estimate for your project, be sure to accurately scope your project and account for some of the most overlooked costs. Our team members in Expand  can help you set realistic expectations that won’t scare executives nor get you fired for causing budget overruns.

What to keep in mind while scoping your business before ERP implementation?

 

  • Complications of your business: It is advisable to keep an unbiased analysis of how complex your business requirements are. Many businesses need an entire ERP software solution (human resource,supply-chain,inventory etc). Companies which have lesser complexities may require only point solutions such as CRM or Finance and Accounting.
  • Change managing activities: The focus should not remain in one direction but also on business process reengineering. Any change in your business process will add to your cost on ERP at a later stage.
  • Similar business overview: We recommend comparing and considering similar organisations ERP vendors and expenses and not set a benchmark to what a particular solution provider may have set for you.

 

The license fee and technician costs is just one side of the coin to view before implementation of ERP. You need to consider the broader aspects to ensure your software investment delivers value.

Some tips to control costs:

 

  1. Clear view and analysis of cost from vendor (ensure no hidden costs)
  2. Develop a project plan with detailed estimates
  3. Include change or unexpected costs
  4. Carefully strategies and wisely judge your vendor
  5. Prices can be negotiated

YOUR FRIEND IN NEED!

 

EXPAND ERP : FREEDOM PRICING

 

Expand Freedom Pricing has been created keeping your needs in mind. Our attractive pricing module gives absolute freedom to the fast growing manufacturers and exporters to take the decision of digital transition of their organisation with ease. 

    • Subscription based concept: Prices starting from INR 3300/- subscriber/month
      Freedom from all fringe costs.Subscription includes update,upgrade,service,remote support (phone support,ticket support,and screen share support), R&D and remote implementation.It also covers cloud service ,auto backup of data, data encryption all managed for you.

 

    • Concurrent User Advantage:
      Freedom of unlimited named user in multiple departments and amp; locations.All users in your organisation will have their own login credentials at no extra cost.

 

    • Freedom from Capex and Infrastructure investment so that you are at minimum risk exposure.Even for customisation it is billed only after customer satisfaction.

 

    • Freedom from any upfront cost.

 

  • Easy Pay- Freedom to choose from Annual (special pricing available) or quarterly subscription fee module on the first year.
  • Pay as you use Privilege: Freedom to pay as per your usage from the second year onwards.
  • Freedom to choose Implementation options (on-line/on-ground) and customisations as per your specific need and pay accordingly.

LIVE LIFE STRESS FREE!

 

Empower your organisation with Expand ERP and enjoy real-time visibility and complete control of your business. Grow your business to the next level with ease as our software does the hard work. With Expand ERP we guarantee you a complete stress free life. 

Please leave a comment below for any further enquiries or if this article has been of any value to you. To book a demo call…  (+91) 9007026542

5 interesting facts to adopt Cloud ERP

5 interesting facts to adopt Cloud ERP

How to benefit from Cloud ERP?

“Water has memory”….and Cloud stores the memory.

Cloud! …sounds quirky?

Cloud is the data warehouse for multiple users over the internet, without directly managing or physically maintaining external servers. In technical terms, Cloud Computing is a network of remote servers hosted on the internet to store, manage and process data in place of a local server. The most commonly used cloud providers are Amazon Web Services and Microsoft Azure.

Most ambitious companies rely on ERP systems to help integrate and organize data that is spread across each of its independent departments. Traditional ERP solutions are often housed within a company’s own server infrastructure and require updating and servicing to stay updated. Cloud ERP, as the name suggests, is based in the cloud, like SaaS (Software as a Service.) Unlike traditional ERP software, Cloud-based ERP relies on the cloud rather than proprietary server infrastructure to help companies share information across departments. Cloud ERP software integrates some or all of the essential functions to run a business, e.g. accounting, inventory and order management, human resources, customer relationship management (CRM), etc. – into one complete ERP system.

Transiting from On-Premise to the Cloud

The term “moving to cloud” also refers to an organization moving from a traditional CAPEX model (own the dedicated hardware and depreciate it over a period of time) to the OPEX model (use a shared cloud infrastructure and pay as one uses it).

Patrons claim that cloud computing allows companies to avoid upfront infrastructure costs, and focus on projects that differentiate their businesses instead of on infrastructure.

The benefits of Cloud ERP are many. Essentially, an on-premise ERP system lives on company’s own servers and is customized according to its needs. It’s a system built for a single client and is typically maintained by the ERP vendor or partners with updates delivered maybe once or twice a year. On the contrary, public cloud ERP systems are standardized to meet the needs of a multitude of clients, though all the data are separated and secure, the application and intelligence layers are shared.

 5 BENEFITS of Cloud ERP :

  1. Cloud ERP is typically more affordable. It eliminates the expense of buying computer hardware and software. In cloud, there is no need to buy hardware.
  2. Updates are sent to everyone at once, which delivers a competitive advantage. You’re not left waiting around for a vendor to update your custom ERP system. This ensures vast amount of computing resources can be provisioned instantaneously.
  3. Thirdly, Scalability is a huge advantage as it is easy to scale up your cloud capacity as per the need of the hour.
  4. Accessibility of data anywhere with internet accessibility makes business process smarter and quicker.
  5. Security– with Cloud your data is stored in a centralized secure location which is encrypted in highly secured systems. Shifting to the cloud also often requires changes to a company’s internal workings — changes that often turn out to be enormously beneficial.

Looking for a secure and reliable Cloud-based ERP Solution?

Your search ends here.

With Expand ERP cloud-based solution, you are free to manage your business anywhere or on any device that is connected to the web. All cloud-based servers are protected with software and hardware firewalls, in addition to 2048 –bit SSL certificates for secure HTTPS transports. Seventy four percent of IT executives and CIO’s have cited cloud computing security as the top challenge preventing their adoption of the cloud services model. But with us your data security is our highest concern. Safety comes First. With our Sure Shield promise, we help you overcome such security threats with our 100% assurance of data security.


We at Expand ERP train your team and provide a robust ready FAQ for our software and 24×7 support.

Still not made the right move to Cloud?

Given the fundamental benefits of cloud computing to businesses, it is no wonder that it is revolutionizing the industry, and is expected to grow further in the coming years. Hence, 93% organizations now use cloud-based IT services, 90% businesses plan to increase their cloud spending. Cloud computing allows businesses to ensure efficient collaboration across business locations and departments and effective sharing of information across third parties and contractors.

Some commonly sought after queries before moving to
Cloud computing are:

  1. What is the reason for the high demand in Cloud adoption?
    Over the years, the cost effectiveness of Cloud ERP was the most attractive benefit for changing business processing. The monthly subscription based payment module added to the leverage along with the elimination of managing software applications and investments in servers and external hardware. Besides, it also enhanced responsiveness, agility and promptness to act resulting in growth of business. It enables the users to access real-time information from various aspects of the business and utilize the data to make better decisions.
  2. What are the considerations for choosing between On Premise and Cloud ERP?
    The need for the deployment of new technologies in business is on a high. How and when to be transitioned is personalized to cater to the needs of the business for the optimum returns on revenue. A growing trend among organizations with on premise ERP is to start their cloud journey by adding specific cloud products (such as eCommerce or analytics) as satellites or complements to their core systems. extend? How will they enable you to achieve your growth goals?

Scalability is another unique characteristics of cloud ERP software. Being scalable, ERP can handle various business tasks irrespective of the size of the organisation. Technological advancements can bring new features and tools to make the ERP system more scalable and robust. From the aspects of convenience and cost-effectiveness, periodic upgrades of the ERP software are way better than replacing existing ERP systems. You can readily integrate the latest features and improve performance by updating the ERP version. It also contributes to bringing automation and digitalization to the business.

3. Is my business suitable for Cloud ERP?
Predominantly, business owners are often wondering whether digital transmission is apt for their organization or not. All kinds of organizations of every type, size and industry can use the cloud for variety of uses, such as data backup, disaster management, email, virtual desktops, software development and testing and customer –facing web applications. For example, healthcare companies use the cloud to develop more customized treatments for patients. Financial services companies are using the cloud to power real-time fraud detection and prevention.
It is necessary to choose the right ERP vendor who empowers rather than restricts. The key considerations should be Do the ERP solutions fit your business? Are they easy to use, deploy, and No matter how or when you choose to move your ERP solutions to the cloud, partnering with a reliable ERP vendor is crucial to adapt in the digital world.

At EXPAND ERP, we understand how important choosing the right ERP cloud service provider is for you. Our model-driven Innovation Platform promptly and efficiently helps to integrate all your business operations. With over 15 years of extensive R&D and market testing our home grown Expand ERP effectively takes care of all your business process needs. Expand ERP is a comprehensive, scalable, customizable, cloud-based ERP solution for fast growing manufacturers and exporters. We are the direct developers and implementers of the software and there is no third-party involvement. Thus, we ensure complete peace of mind as your business starts a smooth and hassle-free digital transition journey with us. To know more about Expand ERP or to book a demo call

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Enterprise Resource Planning

Enterprise Resource Planning (ERP)

Expand ERP cloud provides you the best in its class ERP software to streamline your procure-to-sale processes. Expand ERP consists of Purchase Management, Sales and Billing Management, Customer Management, Vendor Management, Product Management, Financial Reporting, Account Management, Statutory Compliance and Inventory Management. Purchase Management automates key transactions and provides approval workflows. Sales and Billing Management helps you to eliminate bottlenecks and streamline your enterprise processes from sales quote to fulfillment, and timely invoicing to payment all in one ERP software. Customer Management helps to achieve short order cycle times, fast delivery, custom configurations, timely service, accurate invoices and hence a better Enterprise resource planning (ERP).

Vendor Management enables to efficiently manage supplier and vendor data to gain a competitive edge traditional ERP software. Product Management promotes integration and data exchange among all business users who interact with products. Financial Reporting empowers the finance department to record, organize, maintain and analyze data captured from all functional systems included in ERP. Account Management gives you a financial consolidation and reporting application which enables flexible, accurate and rapid reporting than traditional ERP software. Expand ERP Financials, a module within the ERP ensures that you make your tax submissions to the Indian government within statutory compliance’s.

Expand ERP offers a complete set of Inventory management that helps move inventory to the right place, time and cost all through one ERP solution. Expand ERP gives you an in-depth, real-time view into key supplier, inventory and shop floor performance indicators for better Enterprise resource planning (ERP).

When you add up these advantages, the value of Expand ERP is clear. With Expand ERP solution, employees have access to accurate information that enables them to make better enterprise decisions faster. ERP software also helps to eliminate redundant enterprise processes, lowering the overall business cost.

Because every company is unique, there’s no single indicator that says, “You need ERP now!” However, the companies that would benefit most from ERP software often face problems and frustrations.

How to achieve ERP benfits?

How-to-achieve-ERP-benfits? - Expand ERP Blog

How to achieve ERP benfits?

While selecting an ERP system, companies may see about unlimited possibilities in terms of improvements in their businesses. However, somewhere along, many ERP systems do not reach the expectations and the company suffers.
In experiences, aligning of organizations is not a priority for companies during selecting a software. Moreover, companies are very desperate to find a new ERP system fast so that it addresses their pain points and they lose sight of their business goals.
Staying focused on benefits realization is not easy. Therefore we’ve found many strategies which will help companies realize significant benefits from their ERP projects. These strategies are most effective when implemented before or during the selection process.
  • Understand Your Current Status – You can realize many business benefits by knowing your pain points in your current system.
  • Outline Expected Benefits and ROI – When embarking on ERP projects with clients, we typically help them clarify their overall business goals, so they can determine how ERP software can support these goals. This leads to a discussion about business benefits.
  • Ensure Organizational Alignment – Your company needs clearly defined business goals along with project goals.In addition to this they also need an understanding of how they tie together. Everyone, especially executives in the company needs this understanding.
  • Develop A Realistic Project Plan – Unrealistic expectations often is one of the main causes of low benefits realization and ERP failure.
  • Focus On Change Management – You cannot realise business benefits if the end-users are not ready to use the new ERP software.
  • Think Twice About Changing Your Goals – While changing the ERP system all processes, like customization or scope adjustment must be viewed. Also keeping in mind your project goals is necessary.
  • Continually Measure Benefits Realisation – Identify gaps between projected and actual benefits throughout the project. This helps managers to understand what they are doing well and how they can improve.
  • Continually Improve – If the company is including, focusing on business process management as a part of your ERP projects, you should understand the importance of continuous improvement.

Some more ways by which an ERP system can help our industry grow :

  • They are flexible in terms of user interface. This ensures better support throughout industrial operations.
  • They can easily integrate with all our application and business management tools. This provides a single platform for all our operations.
  • It effectively manages project planning, scheduling, inter department communication, etc. This optimizes all our industrial processes.
  • It provides us with detailed project and market analytics for better sales performances.
  • It manages various currency, foreign policies and compliance and finances with ease.
Continuous improvement is better than delayed perfection.

Mark Twain

Software for Automotive Industry

Software for Automotive Industry

 

The automobile industry includes designing, manufacturing and marketing of various types of vehicles for the transport of people and goods. These include trucks, cars, scooters, etc. The automobile industry began in the USA in the 1890s, and for almost a century, it was the world’s leading automobile manufacturer. Then it was over taken by Japan. However, currently China holds the top position in automobile production, followed by USA and Japan. Germany and Mexico are some other major players in this sector. In India, the industry is located near the big cities of Delhi, Kolkata, Mumbai and Bengaluru.

 

The premier automobile making companies in the world are Toyota (Japan), Volkswagen (Germany), Hyundai (South Korea), General Motors (USA) and Ford (USA).

 

It is crucial to have a streamlined and optimized business in the automobile industry. Enterprise Resource Planning or ERP or ERP for automobile industry can help an industry grow to a much higher level. With an ERP software implemented at its fullest in an automobile industry it is much easier to overcome industrial challenges like, quality customer service and delivery management. In an automotive industry many inter linked processes are to be managed without is a single mistake. This is easier using an ERP software. It is also available on cloud. This software keeps a record of our profits, losses and investments. It works on different levels, form HR management to printing of pay rolls.

 

A study by the CIO Magazine published in 2008 revealed that nearly 85% of the respondents agreed that ERP systems were vital to the core operation of their automobile industry, adding that it was very crucial to live without it.

 

Benefits of using an ERP system in an Automobile Industry:

 

  • Integration of value chain activities
  • Inventory Management
  • Controlling and Monitoring several projects simultaneously
  • Enterprise visibility
  • Operational excellence
  • Reduction in errors
  • Improved CRM and real-time information access. India is expected to be the 3rd largest passenger-vehicle market by 2021.

 

“Mind is never a problem. Mindset is.”
Shri Narendra Modi

Know How ERP and CRM Are Different Yet So Important for Businesses

Know How ERP and CRM Are Different Yet So Important for Businesses


In India, usage of CRM and ERP solution is soaring high and for good reasons. CRM and ERP are usually separate but, so connected that CRM cannot work alone effectively without constant update from ERP- from placing orders, sales and logistics to deliveries.  While CRM manages company interactions, ERP Software Company in India offers an integrated administrative application system.

Let’s dig deeper to know where these two are similar and where not-
What is ERP? 
ERP is designed for business administration. It aims at consolidating business data that can be accessible for main operations across the enterprise. It’s a one-off integrated software package that facilitates business process management with real-time update to all concerned departments. For an instance, if a product is out of stock hence the shipment is cancelled, then the status would be sent through the channels to the concerned parties authorized to access the data. This allows departments to regenerate new plan for the issues before it actually makes things difficult within the organization.  ERP offers smooth method for streamlining business process.
What is CRM?
It is a storage database that keeps all the information of related to interaction with customers. CRM process includes categorization customer interactions, collecting and sharing data. CRM method is highly standardized which can be easily shared throughout the network. This smart system can be used by different office executives to create sales projections, representatives can use this to monitor contacts with clients and verify them by sending to shipping clerks. The main focus of CRM is to provide comprehensive customer data that can be used to create plan for client retention and sales improvement.
CRM or ERP: Which one do businesses need the most?
A business may need both the systems but it depends majorly on the integrities involved into the mode of operation. Nowadays, even a small business relies upon CRM system for better and accurate data collection. This is much more clutter-free and easy than collecting data from papers and numerous emails.
ERP is an important business essential that helps streamline business processes. Many large to even small scale industries are relying on ERP Software Company in India as well as abroad to gain better control of their businesses.  Having a single cloud platform integrated with CRM and ERP provides unified view that you can keep control over it from anywhere anytime.
The last note:
When you expect enhanced business growth there must be two things you need to obtain- one is more sales and second is fewer expense. Incorporating ERP and CRM let you enjoy both of them with ease. While CRM brings more clear data on customer interactions and more revenue insights, ERP system keeps the overall operation cost low.

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