Is ERP more cost effective than multiple software applications?

Cost is an important consideration for any business when weighing up the pros and cons of implementing an ERP solution.

Published: May 31, 2018 (Updated: March 29, 2019)

Is it more cost effective to use multiple software applications to manage the various parts of your business, or bring all those tasks together into one ERP software solution, such as Microsoft Dynamics NAV? Here, we’ll look at the two options.

Implementation costs

When purchasing numerous software applications to manage each area of your organisation, the costs can soon mount up. The cost of multiple individual software licenses, installation and implementation as well as training and potential hardware costs mount up with each application you deploy.

This is where ERP’s cost savings shine – by purchasing one single application from one vendor to handle management of all angles of your business, you’re much more likely to save on not only software license fees… you could make significant savings in all areas of implementation. Your accounts software, payroll software, logistics software, inventory software, CRM and more could all be covered in a single application, with multiple unit purchases of your ERP possibly resulting in volume licensing discounts.

Integration costs

Integrating different software applications can be difficult. It’s not a given that your accounts and payroll software will talk to one another, or that your CRM, inventory and logistics applications will communicate without bolting-on some additional clunky integration software – adding extra costs and further complicating future upgrade processes. ERP software such as Microsoft Dynamics NAV solves this problem automatically. With just one application to manage, all areas of your organisation are already integrated, with each part of the ERP software sharing data seamlessly.

Maintenance costs

Software updates, security patches, maintenance, ongoing staff training – these are all considerations you must make when relying on any software application for your business. And with multiple individual applications to service, and multiple vendors to work with, the time and costs involved can become a burden. Again, ERP software offers clear incentives over multiple applications. With just one ERP system to monitor and update, and just one vendor to work with, the process of managing ongoing software maintenance across your entire organisation can be vastly streamlined – resulting in potentially huge cost and time savings.

Day-to-day use

There are many clear advantages to consolidating your enterprise-wide processes into one ERP solution. See our blog post to discover the multitude of ways ERP software can streamline your day-to-day processes and drive your business forward.

Conclusion: for many SMEs, ERP software can offer cost savings

From initial deployment to ongoing use and maintenance, deploying an ERP solution can not only provide savings, but also streamline your business processes and drive your business forward. But it’s not enough to just switch to an ERP solution - you need to find the right ERP software to realise its full potential, and work with the right partner to implement the software effectively.

etaCsolutions are Microsoft Dynamics NAV experts – we can handle the entire process of rolling out NAV in your organisation – from initial implementation and training, through to ongoing maintenance and day-to-day support.

Contact us today to find out how ERP can streamline your organisation.

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