Specialization 

To be honest, it is practically impossible to calculate exact figures of full-scale SAP project cost, or, to be more precise, total cost of ownership.

Really, basic components of project's cost can be indicated as follows:

• Server Hardware cost;
• SAP licenses' cost;
• The Cost of annual maintenance of the purchased SAP products;
• Cost of Consulting services concerning the purchased SAP software products' implementation on the basis of feature set required by system;
• Payroll or Cost of internal IT-team, which should be entirely involved in project and will become a maintenance team in future;
• Company's top-management time cost, while working on project;
• Key user time cost, while working on project;
• End-user's time cost, while training;
• The cost of probable losses in the network of system start-up, caused by user mistakes (human factor in the beginning of system operation);
• The cost of probable losses in the network of system start-up, caused by probable errors during system's adjustment and designing, which weren't discovered on the stage of Integration testing;
• Cost of Consulting services about system start-up support as well as its operation for two quarters at least;
• Cost of Consulting services about system's functionality development and improvement, the necessity of which was realized during the design or implementation of the system;
• A certain amount of additional incidental cost etc.

However, it is obvious, that only some of these components can be calculated and assessed in value terms. Moreover, when it comes to probable negative effect on company's goodwill, it is almost impossible to estimate such costs, as well as to estimate positive effect in case of successful project completion.

Nevertheless, some of the components, with correct approach to the matter, can be assessed precisely enough. Mostly it concerns the costs of hardware and licenses together with cost of outsourcing in the form of Consulting services. Meanwhile, we are talking about reliable assessment, but not about some marketing tricks according to Napoleon's aphorism: «The most important is to start the combat, time will tell…».

TeamIdea company, owing to its own real-life project experience, is ready to provide services concerning assessment of ERP projects components based on SAP software product line, which really can be calculated and assessed. What concerns other components, we are ready to share our experience, our colleagues and clients' experience, as well as our intelligent tips and established convictions.

Due to our branch-wise orientation and experience (Distribution and Retail branches), our evaluations in this field will be the most adequate to real-life figures.