What are the Costs to Build a Corporate ERP System

Many companies want to start installing an ERP system to improve their business management. However, these companies are often confused about what costs must be calculated to build the company's ERP system.

The reason is that the development of an ERP system requires a large initial cost. The more sophisticated the type of ERP software installed, the more expensive it will be. Therefore, the company needs to know what factors need to be taken into account to know the estimated cost of building an ERP system.

What Are the Costs to Build an ERP System?

Usually the costs that must be incurred to install this ERP system vary. The difference in costs that must be incurred by the company certainly has influencing factors. So what are the costs that must be calculated to build an ERP system? Here are the cost factors:


1. Number and Function of Modules

The ERP module used by the company is also a factor in the calculated cost to be paid for ERP installation. The more the number of modules used, the more the range of costs that must be calculated.

In addition, the more complex the ERP system functions used will also affect the results of the amount of cost calculations that must be paid by the company. So the company should use modules that are currently needed by the company.

Keep in mind that the module used should also be chosen based on its integration capabilities. This is because later the ERP system will be used for a long period of time.


2. Annual License

The use of ERP does not escape the use of licenses. Generally, the use of this license is in annual terms.

Of course, this annual license usage will be included in the factors that are calculated into company expenses. Usually this license fee is taken 17% of the ERP price used by the company.


3. ERP Application Price

There are various prices for ERP applications. This is because ERP also has a wide variety of software variations. The more the number of ERP users, the more costs the company will have to incur, but again based on the price of the application.


4. Technology

The technology owned by one company to another may differ. There are companies that have implemented the most advanced technology, there are also those whose technology is still ordinary.

Better technology will affect the quality of the ERP system installed. Even so, the costs will also increase a lot.


5. Customize

Currently, there are many ERP development services that accept customization from the company. Customization is generally done to meet the ERP system according to the needs of the company itself.

Starting from the complexity of the application, the aspects in the application, to the number of changes implemented in this customization will affect the amount of cost calculations that must be incurred by the company.

So the more and more complex the customization is, the more costs the company will have to incur. However, in cloud-based ERP, companies generally only apply a one-time payment for customization.


6. ERP Vendor

Generally, each ERP product has its own brand attached to the ERP product itself. ERP vendor brands that are very well known usually have very good experience. This will also affect the total costs that must be calculated to build an ERP system for a particular company.

Also Read: How to cut SME costs using SAP Business One

7. Types of ERP Divisions

This calculation factor focuses more on cloud-based ERP. There are three ways to share cloud ERP, including sharing software, various platforms, and sharing servers.

The type of sharing chosen by the company will be one of the factors in calculating the costs that must be incurred by the company.


The points related to what costs must be calculated to build an ERP system above, can be a reference and an overview for companies planning to build an ERP system. Interested in building an ERP system in your company? Contact us by 'CLICK HERE'

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