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Hidden business expenses
Hidden business expenses















The idea is to get the implementation complete in the shortest time with the least changes required. Many businesses try to remove process re-engineering from their ERP implementation process. There is almost no possibility to test too much failing to do so could incur significant unexpected cost later. Often, the correction you developed to make one script run successfully causes some other script that passed with flying colors yesterday to crash today. These run all day every day retesting the same scripts. Begin with a new purchase order from a customer, build the product or service they requested and pay your suppliers, deliver the order, and accept a payment to complete the process flow.Īutomated testing applications are available and should be strongly considered.

hidden business expenses

#HIDDEN BUSINESS EXPENSES HOW TO#

Accounts payable knows how to record a supplier invoice, but can they make a payment on that invoice too? Continue combining scripts until you can test an entire flow of processes from order to cash. Once you are satisfied with the single step test scripts, begin to combine them across multiple functional areas. You need hundreds, if not thousands, of these test scripts that check every process in every functional area. You will find the converted data did not fit into the schema as expected. You will find there was some default set up that caused some errors. Record exactly the steps taken and give each test a green, yellow, or red light score. Test using the new ERP with data converted from your legacy system. Begin with simple, single operation tests such as recording time against a job in progress. Test your new ERP continuously during the implementation project. These ERP costs, and the cost of recruitment, will be laid at the feet of you and your project.įollow our ERP implementation guide and make your ERP project a success. Some people will leave the organization during that period and their replacements must be trained to the same standards or the success of your project can be compromised. Be sure to have a review process built in to your controls as there will be a few people who thought they were doing the job as trained, but their methods inadvertently veered in an unexpected direction.ĮRP implementation projects often take more than a year to complete.

hidden business expenses

Be ready with secondary training after some time passes – even after the implementation is considered complete. Most of us need additional training before we completely embody the lesson. When your receiving clerk processes the receipt of materials for inventory, they are creating accounting transactions at the same time.Ī few of us learn completely after the first lesson. You should be sure to invest in cross-functional training, afterall, an ERP is an enterprise-wide set of tools. This is an example of a new skill that needs to be trained. Where you might have copied data to a spreadsheet in the past, your new ERP allows users to build reports and dashboards within the system. Your people will need to learn new skills. Someone will create a purchase order, much as they did with the legacy ERP, but the steps to do the same purchase order in the new ERP will be a little different. You know it is needed but estimating that cost with any accuracy is difficult. Training is widely recognized as a major hidden cost. Those consultants are not cheap – they will likely bill you at several hundred dollars hourly. That expertise is invaluable and will take years for your own staff to acquire. Many businesses hire consultants from their ERP provider to perform some of the work and to share their expertise during the project. At the same time, IT people will be needed to support the implementation project. Every existing system, not only the ERP, needs to continue supporting your business. You will need to supplement your IT staff as well.

hidden business expenses

Plan on adding temporary staff and hiring new people to fulfill those jobs. Plus, all of the members of your team had other jobs before they were selected, and those jobs will need to be done. Your project team will remain on your payroll and you can expect significant overtime needed. You may also consider using automated conversion processes which will probably help. Some costs can be controlled by limiting the amount of historical data moved. You can be sure that data contained in one table must be converted into multiple tables and that data in multiple tables will be used in a single table. You will need to convert data from your legacy ERP into formats that your new ERP can use. You know up front you will spend a lot of money on labor for the implementation but it is unlikely you will guess right. Labor is a major part of ERP implementation.















Hidden business expenses