Part 2 of 4 special blog series
Of all the line items that go into an ERP investment, report writing accounts for as much as 25% of your total investment. That’s 13% more than data migration, 15% more than design and 20% more than testing of the system itself.
As we mentioned in our first post of this High Spend Reporting series, reporting is both the most valuable piece and single largest expense item in an ERP investment. For good reason. In today’s global marketplace, any advantage a company can have over their competition – including smarter, faster decisions based on accurate analytics and reporting — the better off (more profitable) they will be.
Three things in life are certain: death, taxes and report changes
Now that the ERP system is up and running and you have all the reports you’ve ever dreamed of, it’s smooth sailing. Right? Think again! Inevitably, there will come a time where your organization requires new reports, changes to the original reports, some “innocent” modifications, and report variations. With the high spend, slow time to value approach, you essentially have 3 options for writing, changing and/or upgrading your custom reports:
- Contract a consulting and services firm to help ensure you are up and running with the reports you need… for a mere additional investment of $195-$295 USD per hour.
- Hire a new programmer that already has the expertise! On a per hour basis, a less expensive approach than option 1. But is hiring someone for only a handful reports really justifiable? And how long will it take to fill that position? Do you have the time?
- Have one of your current programmers figure out how to write the reports inside the ERP application. This is assuming they have the bandwidth to take on new projects. Do they have the time?
No matter which option is chosen, having a report hard coded in the ERP application will still take anywhere from 5-21 hours per report. You’re probably already running the math on the cost. The more important question is, can you wait that long for the answers you need?
And let’s not forget ERP upgrades. With those upgrades, comes another round of report writing to make them compatible (aka: actually work) with the shiny new version of your ERP.
The largest portion of time spent when upgrading ERP solutions is the report updates. And it typically costs about the same as when you had it written initially. In fact, it can be 50-80% of the entire upgrade deployment.*
*estimates provided by two independent NAV upgrade solution centers in Eastern Europe
So the questions stands… Why might companies be encouraged to take this high spend approach to reporting and analytics? Some will argue it is a “better way.” Some simply don’t know about any other way. And some are under the advice of those who prefer to optimize their billing and utilization rates, even when they know there are alternatives.
Are you ready to discover a cost-effective, better, faster, more accurate, less time consuming way? In the next post of this series, we will take a closer look at the low spend, rapid time to value approach to reporting and analytics to uncover where you can save up to 80% of your spend, up to 99% of the time to get the data you need, and increase your revenue by 32%.