A 2020 ERP report showed that the average budget per user for an ERP project for any institution or organization is $8500 per user or INR 7Lakhs per user. When you factor in how many users your organization may have (especially for larger businesses), and added costs, you'll find an ERP implementation can cost anything between $150,000(INR 1.5 CR) and $750,000(INR 6 CR ) for a mid-sized organization excluding support and maintenance cost.

The Use of School ERP Systems Many schools are opting for a school ERP that will help them to ensure efficiency in daily school operations. A school ERP – Enterprise Resource Planning is an especially designed software that not just helps to manage daily operations but it also helps to create reports, predict trends and make strategic plans for the smooth operation of the school. Using the School ERP Solution schools have been able to simplify the way they function so that the resources are then channeled towards providing students with an enriched learning experience.

ERP systems are unnecessarily expensive to buy and maintain. The average range of costs for the software and services associated with an ERP implementation is $150,000 to $750,000.

ERP in education is not a new concept; ERPs were in full-fledged use in major corporations in some of the biggest industries, to ease the management process. With the development of technology and widespread demand for computing, concepts have led to the increasing popularity of ERP solutions in other industries like educational institutes.

So, what gives educational ERP the edge over the traditional method of management? Definitely, its the time and efficiency factor that places the software ahead of the traditional methods. Managing funds in an institution and tracking them into a report almost sounds like rocket science if done manually. A lot of productive time goes into meeting this kind of specific requirements. Moreover, management of a lot of basic operations like inventory, HR, finance and other services at times appear a complex task. Educational ERP implementation can ensure an institution function at its maximum potential.

Cost: The high pricing of the ERP software is the biggest factor for the education sector. Believe it or not- ERP systems are expensive. The outcome of this system may be to provide a hassle-free process of daily activities. However, even the basic subscription to access this software would require heavy investment. Let alone the updated and premium versions with more advanced features. While companies have a lot of factors considered for the end pricing, at the end of the day, educational institutes would still hesitate to bet on these systems. They would prefer going to their brick-and-mortar ways on any given day. The big question still arises whether the EdTech companies are willing to consider the costs of these ERP systems for the educational institutions.

Lack of Proper Training: As aforementioned, the education sector in India relies on manual processes. Fortunately, the advent of electronic devices such as computers and smartphones was rapid due to modernization. The move to getting the entire workings of the institution online was unexpected due to the global pandemic. Implementing ERP software knowledge to the team members, divisions and departments were immediate. There was some difficulty at first. Getting used to a system will be time-consuming; there will be training sessions and consultations. The team members will need as much time to get to the crux of the system. With so much to learn and less time, the ERP system is deemed complex.

Over-Customization: There is no concept of ‘one size fits all’ in education technology. There are different needs for different institutions. These customizations can be costly and take a lot of time to adjust the programs according to their requirements. If all these modifications are not possible, the educational institutes deduce that the ERP system is something they can do without.

Shortage of IT Infrastructure: Some educational institutes lack the required IT infrastructure to manage the ERP system. Many schools in tier II and tier III cities still do not have proper access to the internet. This is a challenge for the schools and colleges that do not want to shift to the ERP system.

Components of a budget Even if you already have the green light to invest in a new ERP system, you will need to set your budget and justify the costs. While not all of these components will apply to all implementations, they should all be considered in order for you to decide which ERP is right for your business. Here are some of the key components in planning the cost of ERP: Software licensing fees Additional servers and network hardware Data conversion and transfer to new ERP Customization if necessary Testing Training Vendor/consultancy support post implementation These are the most tangible costs to include in your budget but you also need to think ahead to budgetary banana skins and make room for contingencies. We will go into the hidden costs a little further on.

Justify the cost of new ERP software Speeding up order to cash cycle, increasing productivity, improved business intelligence...ultimately though, ERP software needs to be justified with a solid ROI projection. There are many reasons a business would want to buy a new ERP system. Among the most common are increasing productivity, improving business intelligence resulting from better data capture and analysis, accelerating order to cash cycle and reducing labor costs. However, when other business units are also shouting for budget allocations, you need to be sure that you can not only justify the expenditure now but that it will prove to be justified later.

SaaS Platform

To use SaaS platforms, you do not need to install anything on your device. A server provider hosts the application. Both the maintenance and updates are performed on the host side and are invisible to the user.

The best thing about SaaS software is that you don’t need any special equipment or specialists to use it. Go to the site – use the product – grow profit. What could be easier than that?

As a result, SaaS has rapidly developed as a model for delivering value to the user. And the market reacted. Large corporations like to absorb SaaS companies along with their products.