Managing Your ERP Budget for Success

Jennifer Nicholson discusses strategies for managing an ERP budget effectively. She emphasizes the importance of thorough planning, estimating costs accurately, and including a generous contingency. She advises on managing monthly spending by utilizing internal resources over consultants and highlights the need for flexibility in the final stages of implementation. The goal is to complete the project under budget while ensuring success, even if it means spending slightly more than initially planned.

What is a key strategy to prevent overspending in an ERP budget?

• Plan the project, testing, and training phases

• Request additional funding immediately

• Spend the entire budget upfront

• Avoid planning the project phases

Why is it important to add a contingency to your ERP budget?

• To ensure you spend all the budget

• To reduce the project timeline

• To avoid planning

• To cover unexpected costs

What is a recommended approach to manage monthly spending effectively?

• Increase the number of meetings

• Ignore monthly spending

• Use internal resources over consultants

• Hire more consultants

When should the final 25% surplus of the budget be used?

• During the initial planning phase

• In the last six weeks before go-live and the first six weeks after

• Throughout the entire project

• Only after the project is completed

What is the benefit of addressing problems quickly during the ERP implementation?

• It boosts confidence and increases the probability of success

• It decreases project costs

• It reduces the need for training

• It extends the project timeline