SAP Business ByDesign (SAP ByD) is an exceptionally features-enriched suite. Well, given the transparency it brings to operations, the common notion mostly is that it must be too costly. Actually, to decide about the cost or affordability of this suite, one needs to take into consideration certain points. For example, license cost, implementation cost and others.
2021 update on SAP ByD cost
The implementation cost and support cost vary according to the complexity of the business operations. It also depends upon the number of users to be included and types of interfaces in use. The users need to allocate $1647 USD as a base fee. The rest of all cost components are factored upon the basis of this base cost. Subscription fee also depends upon the type of plan chosen. the choice is entirely dependent on the aspects of the business to be handled. All SaaS costs are inclusive of license and cloud hosting cost. For better understanding, you can refer to the comparative cost analysis of different plans as presented below:
1. Base package: $1647 USD per flat fee/month
It allows 5 Enterprise users. This package includes:
- Human resources
- Supplier relationship management
- Customer relationship management
- Financials
- Supply chain management
- Product lifecycle management
- Management Support
- All Self-service tasks
- Built-in Analytics
2. Self-service: $16 USD or $24 USD per user/month
It fully includes all self-service tasks and built-in analytics with partial access to CRM, Project Management, Management Support, Supplier Relationship Management, Supply chain management. The plans are further segregated on the basis of functionalities used. Self-service users are those who are actually using some part of a suite for reporting and managing travel expenses or clocking the work done.
Self-service users cost:
- Standard: $16 USD
- SCM: $24 USD
- Project Management: $24 USD
3. Team user – $87 USD per user/month
Just like Self service users, the team users cost is also detailed according to the purpose. Team users primarily engaged in CRM, Project Management and SCM. The cost structure for team user plans looks something like this:
- Project Management: $87 USD
- SCM: $87 USD
- CRM: $87 USD
for the additional user depending upon the plan purchased
4. Enterprise user per user/month – $146 USD or $197 USD
Enterprise users are the one that are using multiple functionalities to streamline the processes and meet functional goals. For example, the enterprise users employ a combination of some or all the functionalities such as CRM, human resources, purchasing or sourcing, financial management, and others. Some of the common enterprise user plans comprise of:
- Standard: $146 USD
- SCM: $197 USD
Enterprise user SCM costs more because the users need additional functionalities like supply chain planning, physical inventory management and manufacturing.
Three main services by the SAP ByD providers
1. Installation and basic implementation services
- Intelligent strategizing to ensure the suite design is the best fit for the business and related installation setting ups.
- Virtual Implementation – use of VMware, HyperV, etc.
- Break-fix issue resolution – Any work issue resolved to ensure smooth functioning of the system
- Client maintenance – Optimization of client copies and deletes or imports and exports functions
- Client use strategy – Implementation as per the user need and revisit and audit strategy for optimal client use.
2. Operations services
Once installed, the work is not completed yet. The operational issues become the responsibility of the SAP Business ByDesign providers. They take care of:
- System monitoring – proactive monitoring of systems followed by issue fixing and documenting
- Break-fix issue-resolving – identify and resolve the issue arising
- Performance tuning by performing audit leading to isolation of bottlenecks and maximization of hardware utilization
- System copy work – copying SAP from one host to another to enable new integrations and expansions
- Configuration and operation – SAP Solution Managing support providing
3. Up-gradation and migration services
Various up-gradation and migration activities experts need carrying out in order to deliver the best value of SAP ByDesign to the user enterprises. This up-gradation include:
- Version up-gradation
- Heterogeneous system copy development
- Operating system migration
- Unicode converting
- Application of practices & package enhancements
- SAP migration to a new host or virtual hardware
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Factors contributed to SAP ByD Implementation Cost in Singapore
Singapore is quite an advanced country with lots of technical innovations in place. The implementation cost for an SAP ByD Project in Singapore is dependent on the complexity of requirements. The changing nature of working of organizations does give way to complexity in the need structure. The more complex the working, the higher the cost of implementation is expected to be.
The second important factor that affects implementation cost for SAP Business ByDesign in Singapore is the quality of data. The data quality is affected by timeliness in collecting information, the relevance of information in changing scenarios, critical assessment of data and so on and so forth. The ERP system implemented on the basis of the incompleteness of information is quite likely to result in high cost and low outcome situation. Thus, the data and information system maintenance and update requirements may increase the implementation cost for SAP Business ByDesign in Singapore.
The third factor is the readiness of the people in accepting the suite as a working tool. The workers may need training and top management support to come to terms with the use of SAP while working in various departments or tiers of the organization.
Also Read: SAP Business ByDesign in Singapore
Factors contributed to SAP ByD Implementation Cost in Malaysia
The implementation cost of SAP Business ByDesign in Malaysia is generally cheaper. It is simply because SAP Consultants in Malaysia work at cheaper rates as compared to the ones working in Singapore.
The demand for technology drives various other factors such as its cost, its cost of implementation and maintenance and so on. Malaysian companies need a lot of impetus to make use of any new technology possible. Many sectors that have for the longest time stubbornly resisted going digital are now compelled to digitalize to survive covid-19 challenges. Some of the most common problems faced in making any Enterprise Solution a working tool are:
1. Limited workforce comfortable with technologically advanced solutions
The workers accepting the newer technology is not an easy thing. The lack of technical expertise in Malaysian workers interferes with the popularity of the solutions available. Therefore, the organizations fear of cost going waste due to no utilization makes it tough for the Enterprise solutions providers to penetrate markets.
2. Change management issues
The higher need for training among employees to make them comfortable with the technologically enriched solutions drive the emergence of various change management issues.
3. Cultural fit approval
Emerging from change management need is the need to prove that the solution will be a cultural fit. Since ERP implementation is perceived as a heavy reform, the counselling and training requirements increase multifold.
SAP ByD users in Malaysia bear license cost and implementation cost apart from the subscription fee as per the current set-up. Due to the lack of readiness among the organizations and the employees towards adopting newer enterprise software suites or solutions, the SAP consultants tend to work at a low rate. Thus, they have to ensure that the implementation cost does not pinch much. They also have to educate the clients about the change in performance levels and that of added seamlessness in work resulting due to SAP ByD.
Bottom Line
SAP ByD cost analysis does not cover only the pricing structure analysis. The organizations have to take into account various other changes in the work processes, device pool and information systems to calculate the overall cost. The basic components of SAP ByD’s implementation cost :
- Buying cost of the suite as per the user type and plan chosen
- Device management cost incurred for bringing in devices compatible with the suite
- Training cost to make the employees comfortable with the use
- Maintenance and up-gradation cost that actually comprises of device upgradations as well as the intelligence up-gradation.
So, these are some of the researchable avenues that one should pay attention to find the overall cost of the product package and its implementation in the business environments of various types. Notably, SAP ByD inspires the midmarket to become the intelligence enterprise.
