Developing a Budget for SAP Business One
The following components should be considered as part of the total budget for your SAP Business One software:
Software License Cost
The following list summarises some of the points you should consider:
- How many full users and limited users will be needed?
- What is the cost for software maintenance and upgrades?
- What database, operating system and platform will be used?
- Will the software be installed at one or multiple locations?
- Should processing be centralised or decentralised?
At this point, you can only identify an estimate of the total cost of software. If possible, identify the total cost in the form of a range (e.g., $40,000–$60,000) rather than a specific number, as there are variables that can affect your total software cost.
Implementation Cost
The cost to implement your software is often identified as a ratio to the cost of the software. Implementation costs vary from less than one to several times the cost of the software. For example, for every dollar of software, you could spend two dollars for the implementation services. Some of the factors that affect the implementation cost ratio include the following:
- Product Configuration: How much time will it take to configure the software for our environment?
- Customisation: What software modifications are required? Can we minimize or completely eliminate any customisation?
- Business Process Re-engineering: How much is needed? Will it be done before, during or after implementation?
- Training: Who will be trained? What will they be trained on? Who will perform the training? Where will training occur?
- Data Conversion: How much data will be converted to the new system?
- Integration: What other applications will the software need to be integrated or interfaced with?
- Infrastructure: What existing hardware do you have? What needs to be purchased, installed or upgraded?
- Travel Costs: What travel will be required for the implementation consultants?
Hardware Cost
The third costing component to consider when evaluating the total cost of your SAP Business One project is the cost of hardware. What needs to be upgraded? What needs to be purchased? Specifically, you should assess the following components part of the required infrastructure:
- Desktop workstations.
- Servers, databases and operating systems.
- Local and networked printers.
- Network components.
- Cabling and wiring.
- Handheld devices.