Let’s face it, ERP implementations are expensive. You are spending money on software licenses, hardware infrastructure, services, your employees time (time is money) and other expenses.
We may recover some of this cost when we attempt to redo the implementation and you become successful.
But the greatest cost a company incurs when there is a failure in ERP implementation is the cost ofnot solving the problem.
You start the whole exercise of evaluating ERP solutions, Vendors, allocating budget, going through the implementation and so on to solve a specific problem or problems.
If you fail the problem still exist and you keep loosing money due to this problem. And that is the greatest cost.
This could be like loss of Raw materials every month due to the bottlenecks in your operations or excess inventory lying in your stores and if freed can give you much needed capital, wrong accounting practices, cash flow issues, loss of orders and so on.