In going through the ERP purchase process, with a selection of ERP partners and vendors responding to your RFP (request for proposal), you can expect that the prices will range from 'Actually, that's far better than we thought' to 'Oh my goodness, are they answering the same RFP as everyone else, and do they think we're made of money?'
So, how do you compare proposal responses? Why do they often vary so wildly? Are they genuinely comparing apples with apples, or are there a few avocados lobbed in there, too? Is the old saying 'you get what you pay for' true with an ERP? Is the vendor/partner delivering more than you'll ever need and charging a premium? Or are they understating the 'real' price, only to raise change requests and surprise invoices at the end?
And these are all valid questions.
“From a financial perspective, for every $1 not spent on requirements analysis: $10 is spent on extra implementation cost and delayed ROI, $100 is spent in business disruption costs on going live, $1k is spent in hidden costs of not meeting expectations over the life of the software.”Chris Doig – Author of ‘Rethinking Enterprise Software Selections’