Question

ERP IMPLEMENTATION COSTS Berp Corporation: ON Premise Macrosoft ON Premise 4718 4719 Macrosoft Cloud 4.718 2080 1575 2 DOO 2250 2.250 2980 none none 1675 none 349 10.200 InitialHardware Network Costs Workstations UPS for Werkstations Laptops Server Back Server Server UPS Systems Router Network Infrastrutture set-up Total Ongoing Hardware Network Costs Hardware Maintenance Router Maintenance Network in structure Maintance 2MBPS internet line Totalt year) Total (5 years) 2700 14572 8.200 20.422 1287 40 109 of initial hardware cost 1620 264 3203 20 16 031 10 of inal hardware cost 10% of nidal router cost 10% of indtal infrastructure T 1831.20 0156 one rene 820 ,100 4 FRP Application Software Consulting Deployment Cost Training Installation Cost D Total 21.000 1.800 11,700 4050 one 39 150 500 NA NA NA NA 4500 NIA 9000 EURO r Ongoing Software Costs 1 n Software Maintenance Sevicing Fee Totalt year) Total 16 years) 3888 ore 3.30 10.440 6of instalenie obst. one 8104 4050 none 4120 ,320 21.800 T T Storage Costs Data Storage Costs Yearly) initial year yes 2 years 3 years 4 years 5 years none none none none none one none none 1360+ 10% per year 1360 1485 1633.5 1798.85 1978 535 2174 1395 then non none Total cost 5.140. data storage cost 16 17 68.572 7004 20 75.000 82.780 80 856 00040 104043

3. What are the advantages and disadvantages of the various options that Amelectserv is evaluating

Answer 1

Working on Excel sheets and side by side dreaming of increase in market share accordingly, corporate need to be compatiable with the running market technology also. Here in this case, Organisation has shown tremendous growth and effort right from scratch to earn the market share and competitive growth in their business and growing in different sectors.

Problem highlighted among board at the time of bidding is

- Maintenance of heavy and bulk data

- Accuracy of data

- Integrity and authenticity of data

Lack of above basic requirements lead to wrong estimation of business projects and lead to failure in the project undertaken. This ultimately forces board to mull over data management and introduce good Information Technology and system development. initial cost will be heavy for the organisation but it ll benefit in long run.

Accordingly, Options available with the company are ERP cloud, ERP ( with minimal changes)  and Customized ERP.

Advantages and disadvantages of ERP cloud , ERP and Customized ERP

Advantages :

1. In cloud option everything is managed by third party and cost effective also.

2. Control need to be checked which required at company level is also in built at cloud service provider

3. ERP helps to link all the process flow from begining to end product sale / service

4. Complete track of single transaction

5. Real time information

6. Avoidance of Redundant data

7. Real Time information at any moment

8. Can compile heavy amount of data

9. Recover Cost over tenure of 5-6 years, pay back will be higher after wards

Disadvantages

1. Resistance to change among employees

2. Training cost for new employees

3. Customization cost sometime require time to implement, whether it will useful for the business, prototype required to build and testing and implementation. Time consuming process

4. Risk of data piracy and sharing specially for ERP cloud as visible to third party also.

5. Control cost need to be at cloud service provider need to be verified on regular basis.

6. Interest cost to be borne by the organsiation if going to take loan for implementation for the same.

7. Initial investment bring down the profit of the organisation.