Migrating data from various systems
Both connecting internal systems and deciding not to connect them can involve a certain amount of data migration work. Data is often stored redundantly across different systems and has to be brought onto a common footing before it can be used in the e-commerce system.
Customer data, which is often maintained in several systems, is a good example. In the ERP system, you find customer information in the context of ordering processes. The CRM holds similar customer information, partly the same, partly completely different, which is needed for other purposes such as marketing. Without consolidating this customer information, the desired processes are very hard to implement, and the result is a lot of confusion, problems and frustration on all sides.
If there is data stored in only one system that you don't want to connect for whatever reason, that data also has to be exported, transformed if necessary and imported into the e-commerce system.
Data quality plays a crucial role in this process, because the effort required for migrations rises as data quality falls. It is therefore advisable to first bring the raw data up to the required level so that everything that follows goes more smoothly.
The effort, and thus the cost, of data migrations is very hard to estimate since, as mentioned, quality, volume and structure play a major role. That is why we recommend working out the master data or the required data structures in advance and deriving the necessary steps from them.
Paloma offers many options for importing, exporting and transforming data into other structures, as well as specific mechanisms such as customer data consolidation that can serve as a basis for data migrations. This keeps the effort and cost of migrations as low as possible.
Internal and external training
When new systems are introduced, internal and external employees, partners and, depending on the case, customers need to be trained. This is essentially tied to the implemented processes, which have to be used consistently by everyone involved.
Training is also an efficient way to learn the new systems and helps everyone get up to speed quickly, especially with custom extensions to the system that aren't covered in the e-commerce system's standard documentation.
With Paloma, you get training first-hand at a reasonable cost, whether internally or externally for your B2B customers. Additional guides and comprehensive system documentation are also available to you at no extra charge and can be accessed at any time.
Hardware, operations and the necessary maintenance
E-commerce software needs suitable hardware, in line with its technical requirements, to run. The software must be monitored and maintained in operation to ensure it works properly at all times.
The hardware required to run the e-commerce platform can be calculated quite easily by taking into account the data volume, the projected number of users and the order volume.
If the e-commerce software is operated by the vendor, the costs can usually be defined as a flat fee. With an in-house solution on your own hardware, the actual costs are somewhat harder to calculate, since the infrastructure has to meet the software's requirements. Keep in mind as well that with self-hosting, the effort for upgrading your e-commerce software is usually not included, because the required tooling isn't available and in-house systems are often only accessible to a limited extent for security reasons.
Our clear recommendation is therefore to have the vendor host the system directly, as the overall effort is much lower. This applies both to the hosting itself and to the additional costs of extra internal and external work.
With Paloma, all options are available to you, and with managed hosting you have no additional effort apart from the flat maintenance fee based on the system's technical requirements.
Service, but tailored to your needs
E-commerce systems have to work reliably and around the clock; otherwise your customers will buy from another supplier. This places certain quality demands on the e-commerce software you use. A good system can cope well with outages of integrated systems and other technical difficulties, and thus gives you a solid sales platform.
Technical or functional problems can always occur, however, especially with custom extensions, and depending on their nature they need to be fixed as quickly as possible. This is where the service level comes in, which usually sets out the service terms for your e-commerce landscape. For example, it defines what support you can expect when something goes wrong and the latest point by which you can expect a solution. You aren't left on your own, and the vendor actively helps you solve your problem.
Choosing the right service level depends on the circumstances of your e-commerce platform. If, for example, your customers only order on weekdays and any problems on weekends have little impact, a service level that provides support on business days during regular working hours is sufficient. If you sell internationally and on weekends as well, choosing a 24/7 service level would make sense.
With Paloma, you can choose the service level that fits your e-commerce platform and your circumstances. You can also switch to a different level at any time, giving you the greatest possible flexibility.
Summary and sample calculation
As you can see, the total cost of operating e-commerce software can be calculated relatively easily by looking at the topics discussed. However, this is only possible if you are clear about your basic requirements, so that you can make the appropriate comparisons and calculations.
Draw a diagram and note the participating systems on it. Show which data is held in which system and which data is needed by which system. You can find a guide for this in this article: Mapping a system landscape? These 3 steps lead to success!.
Look at your sales process and, based on the features of the e-commerce software you are considering, analyze whether the standard functionality covers your processes.
For each of the points mentioned, estimate a rough price based on your circumstances and consider the service you can get with the solution.
Here is a final TCO calculation for a fictitious example with Paloma and a fictitious daily rate of CHF 1’600:
- Consulting: 5 days
- Setup/commissioning: 2 days
- SAP ERP integration via IDoc: 2 weeks
- Use of Paloma's in-house PIM - included in setup
- Integration of B2B customers via standard EDI: via management UI, internal effort
- Integration of a specific ERP system via a separate interface: 15 days
- Use of the standard Paloma B2B ordering platform, branding: 1 day
- Custom B2C web shop via headless API: 12 weeks for design and front-end implementation by a partner
- Custom extension of one feature: 5 days
- Data migrations
- Import of product data via Excel: no cost, via PIM
- Import and merging of customer information: internal effort, via Excel import, including manual corrections
- Training: 3 days
- License per month: CHF 1’200
- Transaction fees: none
- Operations: with the essential redundancies and a test environment, per month: CHF 2'000
- Service: 8/5 - CHF 1’000
This puts the initial cost of my fictitious solution, with a small extension and a separate B2C website, at just over CHF 160’000, with the custom B2C web shop accounting for the largest share at almost CHF 100’000. Ongoing operation of my e-commerce solution costs me CHF 4’200 per month.
Final thoughts
Are you also thinking about an e-commerce solution for your company and would like to learn more, have questions or suggestions, or would like to sit down with an expert to discuss your solution? Then don't hesitate to get in touch for a conversation or a personal demo of the Paloma e-commerce software.
Header image: Photo by Pixabay on Pexels; Figure 1: Photo by Element5 Digital on Pexels; Figure 2: Photo by Pixabay on Pexels; Figure 3: Photo by Manuel Geissinger on Pexels; Figure 4: Photo by cottonbro on Pexels; Figure 5: Photo by cottonbro on Pexels Note: The images have been cropped and compressed