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The total cost of Enterprise resource planning is an estimate, which is based on careful assessment of a number of variables that can vary widely from one company to the other. 

Your company size, your specific company’s requirements and your scope of use play vital roles in determining the total cost. It is therefore fundamental to first understand factors that influence Enterprise resource planning. Several factors play a major role in determining the cost of enterprise resource management software. 

This factors include: type of business and the number of users, which is estimated at $3,000 per concurrent user; third party software add- in, estimated to be about 20% of the total cost; Implementation cost, with a ratio of implementation to software cost of 0.75:1 to 121; Small to medium size business is estimated to pay an estimate of $150,000 to $750,000 for software and service. Other costs may arise from maintenance, upgrades and technical support which involves training of staffs and ensuring the enterprise resource planning software implementation is successful.

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The differences between BPM and ERP

Business Process Management (BPM) is an approach and practice that focuses on the improvement of business process to make it more efficient. On the otherhand, Enterprise Resource Planning is a software system involving a number of integrated applications that are used to collect, store, manage and analyze data from various business activities.

It is essential to take note that there are certain differences between BPM and ERP. While BPM is aimed at optimizing and improving business processes, ERP is focused on integration of internal and external information across business functions.

Another difference between BPM and ERP is that BPM tends to be much more processed focused whereas ERP is limited to organizational functions.

Furthermore, while ERP is a system that integrates all company data in one place, BPM is used to analyze business workflow and processes.

Finally, while BPM is a practice and concept of managing business from end to end in order to improve efficiency, ERP is a software and vital organizational tool that integrates various organizational systems in one place.

How much does a typical ERP (Enterprise Resource Planning) benefit your business?

If you are planning on starting a business or you are thinking of how you can enhance the management of your already established enterprise, then the answer is enterprise resource planning. In fact, ERP systems are customized commercial software, which enables businesses to integrate core processes as well as the chief administrative functions.

Processes like warehouse management, product planning, and control as well as functions like human resource management, accounting, and payroll among others are integrated through ERP.

Today’s article gives more insight on how much does enterprise resource planning benefit your enterprise/business. Therefore read on and enlighten yourself on the values of ERP to any business.

Benefits of enterprise resource planning

The following are benefits of ERP.

a. Cost and Inefficiencies elimination. The cost of purchasing software for every process is eliminated through the employment of ERP. ERP enhances management and as a result inefficiencies in the business are eliminated drastically.

b. Flexibility, customer responsiveness and productivity enhancement. Integration of business processes in a single application maximizes processes efficiency across the enterprise/organization.

c. Ability to extend your business through the use of the internet. Integration of business processes and functions in a single system, increase the capability of business practitioners to engage the internet in enhancing the growth of their enterprises. The internet makes it easy for you as a business practitioner to gather more market information, communicate with customers and other partners, run your business processes as well as sell products (online) efficiently and effectively.

d. Enhancing data consistency. Integration of business functions and process into one system reduces levels of business information inconsistencies. This is with regard to different systems. Through the use of ERP in business management enables managers to acquire accurate information and make informed decisions in the running of enterprises.

There you have it all, the benefits of ERP in businesses. ERP improves the running of your business considerably. Actually, ERP enhances the growth of your business/ enterprise significantly.

Grow your business through the use of enterprise resource planning.