Posted by: Duffy
Posted on: Friday, 30th June 2006, 10:10 AM.
No...it is actually 7 dollars. The real answer is "it depends on the project" and the software used to meet the end goal. The figures that are out there are for enterprise software for business systems. If we limit the costs of the software to licensing, configuration and custom code then the overall cost will be affected by how closely the solution meets your requirements "out of the box". For example, if you are a small company and plan to use MS Great Plains software with no customization for your accounting functions then you probably can keep the cost above the software to a minimum.
The number shoots up and through the roof when any of the following (and there are more than this) occur:
1. Inadequate Needs Assessment: The product was selected based on false requirements
2. Product Selection without an understanding of short and long term goals: The product does not scale with the needs - you chose a short term point solution with the expectation that the product would scale to meet changing business requirements.
3. Bad Product: Quality issues, only 2 of 10 features work, etc.
4. Purchase of a product that was designed to require services.
The Net: (1) Count on spending at least 4X for customization; as a contingency and then if you don't; use the money saved for something else. (2) Do a thorough needs assessment WHILE you review products. I find that if you start with your requirements and then start to look at products you find features and functions that you can match to potential future needs. (3) Make sure the product does NOT require services or custom work. While you may need services/custom code the product should work out of the box to meet at least 80% of your needs.
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