Implementing an Enterprise Resource Planning (ERP) system like Microsoft Dynamics 365 Business Central can greatly enhance efficiency, productivity, and scalability for small and medium-sized enterprises (SMEs).
However, the perceived costs involved often deter many SMEs from pursuing such essential technology upgrades. Adopting best practices and strategic planning can significantly reduce these costs, making ERP implementation affordable and manageable.
Here’s our guide on exactly how you can cut down on your ERP implementation cost without sacrificing quality or effectiveness.
Start with a Clear and Defined Project Scope
One of the major drivers of increased ERP costs is scope creep, when additional requirements get added throughout the project.
SMEs can significantly reduce ERP and Business Central implementation costs by clearly defining and agreeing the project’s scope early on.
Start by identifying essential business processes which must be supported by the ERP, and resist the temptation to add nice-to-have features in the initial phase.
Additional functionalities can always be integrated later as your business grows and you become familiar with how system works.
Prioritise Essential Customisations Only
Customisations are often necessary, but excessive customisation can dramatically inflate your ERP costs. Focus strictly on the customisations that add clear, measurable value.
Before customising, evaluate whether your current processes can be adapted to align with Business Central’s out-of-the-box functionality.
Leveraging the built-in features helps SMEs save significantly, ensuring a faster deployment and lower ongoing maintenance costs.
Related Article: Customisations for Productivity
Leverage Our Finance Starter Pack
For SMEs keen on adopting an ERP solution but cautious about initial costs, starting with a modular approach is a smart strategy.
Our fixed price, fixed scope, Finance Starter Pack is a perfect example, enabling SMEs to implement Business Central’s core financial management capabilities at a reduced initial cost.
This allows businesses to gain immediate value from critical finance features, such as accounts payable and receivable, general ledger, cash flow management, and financial reporting.
Later, businesses can add additional modules and features as their business grows and needs expand.
Related Article: Finance Starter Pack
Opt for Cloud-Based ERP (SaaS)
Choosing a cloud-based ERP like Microsoft Dynamics 365 Business Central over traditional on-premise solutions can significantly lower your implementation and ongoing maintenance costs.
Cloud ERP eliminates the need for expensive hardware, server management, and in-house IT support.
SMEs also benefit from automatic updates, greater scalability, and predictable monthly subscription costs, making budget management straightforward.
Effective Data Management
Data migration is often underestimated in ERP implementations and can lead to unforeseen costs if not managed properly.
To control these costs, SMEs should focus on migrating only necessary and accurate data. Performing a thorough data clean-up before migration ensures that only relevant data moves to the new system, thereby reducing complexity and migration expenses.
Invest in User Training
While it might seem counterintuitive, investing in thorough user training upfront significantly reduces overall implementation costs in the long run.
Well-trained users are less likely to encounter issues or require extensive support post-implementation.
Empowering your employees with comprehensive training helps maximise ERP utilisation, enhances productivity, and minimises disruptions during and after implementation.
Adopt a Phased Implementation Approach
Rather than attempting to implement all ERP functionalities simultaneously, SMEs should adopt a phased approach.
Starting with key business functions — such as financial management through our Finance Starter Pack — allows businesses to manage costs effectively and ensure each phase is thoroughly tested and stable before moving on to the next.
This approach minimises disruptions and makes ERP implementation manageable and budget-friendly.
Related Article: Business Central Costs
Utilise Internal Resources Effectively
Using internal resources effectively can greatly reduce external consultant fees and overall implementation costs.
Assign a dedicated internal team to coordinate and oversee the project, reducing reliance on external support.
Utilising internal expertise and knowledge also helps tailor the ERP to your precise needs efficiently.
Regular Project Reviews and Adjustments
Regularly reviewing project progress against clearly defined milestones and objectives helps avoid costly overruns.
Identifying potential issues early allows SMEs to adjust plans proactively and keep costs under control. Maintaining open communication between internal teams and implementation partners ensures alignment and efficient project management.
Conclusion
Implementing a powerful ERP system such as Microsoft Dynamics 365 Business Central doesn’t have to be financially daunting for SMEs.
By carefully managing the project scope, prioritising essential customisations, leveraging cost-effective options like the Finance Starter Pack, and adopting best practices, SMEs can realise significant cost savings while gaining the full benefits of ERP technology.
Next Steps:
Interested in exploring how an affordable ERP solution can transform your SME?
Contact our expert team today to discuss how we can help tailor Business Central precisely to your needs and budget.
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