Introduction
We all know that an ERP is a significant financial investment. Whether you are upgrading or replacing your system, it is necessary to evaluate an ERP’s maintenance package before deciding on a system. This is because no matter what option you choose, maintenance is a meaningful factor in an ERP system’s overall cost. Additionally, the value of your ERP to your organization and its total return on investment is dependent on how your ERP performs over time.
Maintenance Adds Up
A maintenance package is a noteworthy part of any ERP system’s total cost, with typical ERP maintenance fees ranging from 15%-30% of its initial software purchase (PC Bennett). That means you are essentially re-buying your ERP every 3-7 years just in maintenance fees. With that price tag involved, it makes sense to choose an ERP system that has a maintenance package option that is worth the money for your business needs.
The Dangers of Doing It Alone
Because maintenance costs add up, some manufacturers try to do their own maintenance or choose the lowest level of service possible. Every organization is different, but choosing a minimal maintenance package from your vendor purely based on its price usually costs more in the long run if you aren’t partnered with an affiliated consultant. After all, any time your internal IT team spends on ERP maintenance is time taken away from other critical tasks at your organization. A minimal maintenance packages from an ERP vendor also may not include help desk support, so if something goes wrong, you’re on your own. These vendors often utilize a partner ecosystem so that you can submit tickets and receive support through a partnered ERP consultant. Your internal IT team can likely handle some day-to-day monitoring without too much trouble, but they are not ERP experts to the level of a skilled outside consultant. With the right consultant offering support, maintenance can happen faster, and you can be confident it is completed correctly the first time, every time. It’s not worth losing critical hours on the production floor because your ERP system wasn’t maintained correctly. An ERP consultant that has an in-depth understanding your business and vast experience with ERP systems can ensure that you make the most of every one of your ERP’s features to receive the maximum return on investment for your ERP. Learn how Datix supports its ERP clients.
Find a Maintenance Package that Adds Value Every Year
Not all maintenance packages are the same. ERP vendors offer significantly different plans from each other because they have fundamentally different views on what maintenance should include. For some ERP vendors, maintenance is about “maintaining” the status quo and their packages focus on fixing bugs. Any new modules or functionality will likely cost you extra, so its not included in your maintenance. In contrast, other ERP vendors see maintenance as part of an effort to allow their customers to keep up with the latest advances in the industry. Their R&D teams are invested in improving their current products and value earning the loyalty of their existing customers. With these vendors, most new advancements will be included in their maintenance package, so you don’t need to replace your ERP as frequently. Combining a maintenance package that includes innovative new functionalities with support from a partnered ERP consultant will allow you to get the most out of your ERP. As nonbiased ERP consultants with 25 years of project experience, Datix can help you choose between vendors to find the right ERP for your business.
Wrap Up
The quality of your ERP system over the years depends on its maintenance package. Do you want to get the bare minimum out of your system and barely keep up with the competition or do you want to have the resources to get ahead in your industry? An ERP that allows you to continuously add the latest modules to your system will take you a lot farther than the one that simply offers patch updates from time to time.
Learn more about ERP systems in the Ultimate CRM and ERP Implementation Plan eBook
About Datix
Datix is the ERP consultant of choice for manufacturers and distributors. Our in-depth analysis of our clients and their business needs allows us to maximize their software investments to the fullest.
