ERP implementation: what factors influence its cost and duration?

ERP implementation is a complex process that involves selecting, analyzing, preparing, and introducing new software into a company. When well planned, it can significantly streamline processes, provide better data insights, and increase productivity.

But what influences the cost and timeline of the project? Let’s explore the key factors that determine the success of an ERP system implementation.

1. How Does Company Size Affect Implementation Duration?

The size of the company and the complexity of its processes significantly impact the time and cost of implementation. Larger companies face several challenges:

• A large volume of data that needs to be properly processed and migrated.
• Higher risk of downtime, which can affect the entire organization’s operations.
• Complex internal processes, requiring more customization of the software.

2. Project Scope – What Do You Want to Cover?

The more functionalities a company plans to use, the longer and more expensive the process will be. If the goal is to cover a wide range of areas—such as finance, warehouse management, and customer service—additional time will be required to train employees.

Quick adoption of the new software is essential. Regular training and employee support can help shorten the adaptation period.

3. Data Migration – How to Prepare Data for a Successful Migration?

Data migration is often underestimated, but it’s a key part of implementation. The process involves:

1. Backing up data from legacy systems.
2. Cleaning and mapping data into the new format.
3. Testing and validation to ensure the data is clean and in the correct format.

Old and inconsistent data can cause delays. However, proper preparation ensures a smooth implementation and minimizes risks.

4. What’s the Cost and Duration of ERP Implementation?

To illustrate, let’s take an example:

A trading company with annual revenue of 2 million euros.
The company needs basic functionalities such as sales, warehouse management, finance, and accounting. The software will be used by 10 out of 30 employees. Although there are no specific customization requirements, data migration will be time-consuming due to scattered and inconsistent data sources.

Estimated cost: 50–60 thousand euros
Duration: 5 months

Conclusion – How to Increase Your Chances of Success

In ERP implementation, it’s crucial to choose the right provider and dedicate sufficient time to preparation. An experienced partner like Cloudempiere can foresee potential challenges and help you efficiently manage the entire process.