Blog & Opinions
How Much Does SAP Business ByDesign Cost?
While cost is a major consideration for any size of business, choosing the right software to support future growth plans is far more complex than cost alone.
However, the quick answer is as little as £24k per annum.
Let’s iron out some of those complexities now...
Cost Benefit Analysis
Advocates of value based selling would argue that cost is irrelevant. The price you pay for something which immeasurably improves your life pales into insignificance once the benefits are taken into account.
As with any business decision, there is a cost/benefit analysis which ought to be conducted to ensure the price paid is at least commensurate with the value gained. For a software project, value can be measured through things such as:
- Time saved through automation
- Reduction in duplication of effort
- Minimising human error
- Increased sales through improved customer interaction and service
- Improved visibility of business performance
- Faster decision making
- Future proofing your business
- Improved employee engagement
Budgeting for New Software
That’s all well and good (I hear you say) but when you are looking to qualify a software product for your shortlist you usually have a budget in mind. Budget is as good a way to start your ‘search and select’ as any.
It makes sense to only review software products which you can afford. There’s no point in adding 5- star software to your shortlist if you simply cannot meet the cost, or if the business benefit doesn’t justify the price tag.
Software functionality is typically reflected in the price of the software. In fact, many software products offer Freemium models for you to consume a certain amount free of charge whilst paying for upgraded functionality. If your needs are straightforward this can be a good way to update your systems. However, if you are looking for something more robust to run your business then you will probably want to add some kind of ERP (Enterprise Resource Planning) into your search and select process.
SAP Is Too Big
The problem with SAP is that most business owners think it’s too big for them. The perception is that SAP is exclusively enterprise level company software; for big business only. That perceived “bigness” extends across functionality and price. “Too big”, “Too complex”, “Too pricey” are accusations thrown around about SAP software.
Whilst it is true that SAP are best known for their enterprise level software and global implementations, it is not true that your business is too small to implement SAP. As evidenced by the price above, you can acquire SAP software for less than the UK’s average annual salary. Not bad for the Rolls Royce of the software industry.
The functionality of their cloud based Business ByDesign product is, as you might expect, robust. Don’t mistake an able bodied software for “too complex”. Classed as a mid-market product, it is really well suited for SMEs who are expanding rapidly or who want to use a two tier SAP system.
It’s the robustness of the functionality which makes it an excellent choice of software for a rapidly growing company. SAP Business ByDesign has a cutting edge financial component at the heart of the software; it has already been localised for over 40 countries. ByDesign also has a CRM component, Project Management, Manufacturing, Supply Chain, Logistics and HR all contained within. The out-the-box functionality is second to none.
The reason why SAP Business ByDesign is so great for mid-sized, fast growing companies is that you get all the software included in your subscription as part of your base fee (which is just over £1k per month). Unlike other software solutions where you could get a sizeable bill to add additional functionality, with ByDesign, additional functionality is already included in the cost. You then build up your subscription based on user types. That means that you cannot ‘over consume’ the software. You pay for what you use. You can also feel safe in the knowledge that as your business grows, your software can expand with it.
So… How Much Does SAP Business ByDesign Cost?
The only stipulation is that you must have a minimum of 20 users on the ByDesign system. You get 5 enterprise users included in your base fee of £1095 per month. The other licenses are added to your specification. The cheapest you can expect to get a full system might be circa £24k per annum. A typical ByD business might be paying £100-150k per annum for their licenses (or higher if they have more employees). You might want to consider SAP Business ByDesign if you have between 25 and 500 users who need access to the system one way or another.
While we are discussing cost, don’t forget to factor implementation into your budget. No matter the size of your system you can expect an absolute minimum of 30 days effort to implement out-the-box functionality. Typically, implementation can be anything from a factor of 2 to 4 times the value of your annual licenses depending upon complexity. Remember, this is a one-time fee. Unless you continue to roll out additional functionality your only costs thereafter will be your ongoing annual license fees and any support you choose to add to your package.
If you are a rapidly growing business, with 25-500 employees and you want to drive the Rolls Royce of business software for a fraction of the cost you might expect to pay; SAP Business ByDesign should definitely make the shortlist.
Allied Worldwide are digital transformation experts and SAP Business ByDesign partners. To discuss how SAP can transform your business get in touch.
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