How Important is Price when Choosing an ERP Solution?

Price is of course a factor in choosing an ERP solution such as Microsoft Dynamics NAV. But when taken in context with the other considerations involved in the decision, just how important is it?

When asked what they considered the most important factors were in choosing an ERP solution, a recent survey of senior finance, accounting, and IT professionals found that price was quite a long way down the list. In fact, only 13% of survey responders considered price one of the most important parts of the decision.

Rather than project costs, the emphasis when choosing an ERP solution tends to be given to return on investment (ROI). The ROI from implementing an ERP solution such as Microsoft Dynamics NAV comes from streamlined business activity, increased productivity and efficiency, better control of costs and margins, and improved profits.

Microsoft Dynamics NAV is strong on delivering ROI, and research by Nucleus found that 77% of Microsoft Dynamics NAV customers achieved a positive return on investment with an average payback of 23 months.

So how much does a Microsoft Dynamics NAV Project Cost?

Generally the overall price of a Microsoft Dynamics NAV project is made up of licences plus implementation, service and support costs. As a rule of thumb, licence costs for a typical Microsoft Dynamics NAV project are around a third of total project costs (but this does vary depending on the nature and complexity of the project).The licence price of Microsoft Dynamics NAV is highly competitive, and slightly cheaper than many other mid-market ERP solutions, for example the Sage 200 suite. There have also been a number of recent offers on licences, for example three licences for the price of one.

Survey Details

The survey was carried out by an independent research company on behalf of Concentrix TSG. Answers to the survey question were multiple-choice; 11 options were provided. Responders could choose more than one option and could also provide further information if necessary. The results were based on 103 survey responders. The question was one of several included as part of a larger survey commissioned by Concentrix TSG.

For independent advice about ERP software, or for more information about the price and costs of an ERP project, please contact Concentrix TSG.

By Concentrix TSG– independent UK Microsoft Dynamics NAV software specialists