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Is developing an in-house ERP system expensive?

This is a question that has been asked repeatedly because there is a misconception that an in-house developed ERP system will be not only less expensive but also more reliable.

In fact the reality is something else. First of all, in-house development can be much more costly than it appears. Managing your own development team with their salaries and other perks, the downtime in user departments during all phases of development, and the opportunity cost of not putting developers on other worthy projects that would propel your business forward. The time it requires to extract meaningful data for executive analysis out of your database must also be included as a cost consideration.

Then comes the maintenance part. The maintenance of ERP system is time-intensive, slow, and fraught with undocumented functions. And remember the the cost of downtime when outages occur. The complexity of today's computing environments only magnifies the difficulties and expense of implementing and maintaining an ERP system. Therefore it is better companies should avoid any plan to develop an ERP solution in-house that can bring only troubles and no benefit.

Other questions:
How to succeed in ERP implementation?
Can ERP improve General Ledger capacity?
How to choose the right ERP?
All integrated applications in an organization can be referred as an ERP?
Who are ERP package vendors and what their roles?
What are the advantages of HR module in ERP?
How to succeed in ERP implementation?
What are the main reasons to get ERP?
How ERP system can help manufacturing industry?
What are the risks of the ERP implementation?
Are better known companies the best choice when considering ERP implementation?
Is there any preparation required before an ERP implementation?
What is the ERP life cycle?
What is the role of technology in the ERP selection criteria?
What are the common differences found in different ERP brands?
What makes dot net application compatible to ERP?
How to prevent computer crime by employees?
What is the relation between SCM & ERP?
What is data migration and how it is managed for ERP implementation?
What are the reasons for the popularity of ERP system?
How important is ERP training?
What are the various pre-requisites of ERP?
What is the role of technology in the ERP selection criteria?
How to prepare an organization for ERP implementation?
Should SMEs implement ERP system?
What is meant by enterprise application integration?
What are the roles and responsibilities of ERP vendors?
How is the cost of ERP implementation built up?
What is the difference between ERP and tools for ERP?
What is the typical implementation time frame for ERP system?
What are the difference between service and manufacturing industry?
Why ERP is considered to be the backbone of e-business?
Why can't companies develop their own ERP packages?
What are some key areas in which ERP systems can yield additional cost savings?

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Common ERP Myths

ERP means more work and procedures

ERP will make many employees redundant and jobless

ERP is the sole responsibility of the management

ERP is just for the Managers/Decision-makers

ERP is just for Manufacturing Organizations

ERP is just for the ERP implementation team

ERP slows down the organization

ERP is just to impress customers

ERP package will take care of everything

One ERP Package will suit everybody

ERP is very expensive

Organization can succeed without ERP


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