How to Choose an ERP System for Your Business

Three types of businesses buy ERP software in Malaysia Three types of companies buy ERP systems: Small businesses (with between two to 100 employees) Large companies (with over 100 employees, as well as an information technology department) In this article, I will explain the differences between these two types and give an example for the different types of companies. Knowing the distinctions will help you choose the ERP solution which best fits your business’ requirements. Below are some instances of how ERP systems can be beneficial for different kinds of companies.

The cost of ERP systems

ERP implementation costs can be broken down into two main types: cloud-based and on-premise ERP. The best option for your organization is determined by the amount of infrastructure in place. In the case of Malaysia, for instance, many SMEs located in Malaysia are situated in industrial areas with average infrastructure and limited connectivity. Additionally, it is important to think about whether the internal staff you have are capable of handling the ERP deployment procedure. For instance, in Malaysia, ERP deployment costs typically are divided into licenses for software, implementation services, and recurring annual cost of capital.

IT Resources are part of the first group. It is essential to ensure that the supplier meets with the requirements of executive and working personnel, in addition to regulations. A ERP installation in Malaysia, for example, could cost up to $1,000,000. IT is essential in Malaysia. ERP installation costs in other nations are typically less expensive. Owners of Malaysian businesses should be aware of these aspects when purchasing ERP software.


The case of Malaysia, SMEs have been slow to adopt ERP systems despite its potential advantages. In this country it is evident that the adoption rate is not high, with only 10% of manufacturing SMEs have adopted ERP. There are many reasons to the reason ERP adoption isn’t widely spread. The lack of ERP understanding is just one reason. In the end, ERP isn’t yet considered an established technology for SMEs. This is one of the main points to take into consideration when evaluating ERP.

Think about the size of your company. Small businesses are more likely to be able to afford a smaller budget and fewer IT personnel. If your business falls in the middle-sized or large-sized range there’s a good chance you’ll have an in-house IT department, which requires an ERP system. Larger companies have more employees and an infrastructure that is more advanced. This is why it’s important to select the right ERP system.

Options for integration

Malaysia has seen an rise in ERP implementations because of its cost-effective and efficient government management. Malaysia hasn’t achieved a lead position in adopting new technology and enhancing its competitiveness with suppliers. Malaysia’s manufacturing industry isn’t quite as well-developed in R&D or embracing new technology in comparison to other nations. In the implementation of an ERP system in Malaysia can be difficult as this will make it less competitive , and hinder companies from being able to adapt to changes in the market.

ERP systems are available both in cloud and in on-premise settings. The decision to choose the system is based on the requirements of your business. But, it’s essential to look at the capabilities of internal personnel in running the system. ERP installation costs are separated into licenses and services. Subscriptions permit you to enjoy the many benefits of ERP systems but you’ll have to cover an annual capex. Before you start using the program, make sure that you have calculated the cost of the initial cost.

Cost of implementation

The expense of ERP software within Malaysia is much cheaper than in other countries. Big companies frequently outsource the management of their accounting and CRM processes to Malaysia and suffer huge economic losses. The poor quality of ERP software as well as inadequate employee training are two of the reasons that Malaysia has a loss of between three million to two million dollars annually. In this regard, it is advisable to invest in a Malaysian ERP software with a reputable provider. Companies can reap the benefits of an ERP that can be adapted and offers less price per user.

Small and medium-sized enterprises operating in Malaysia have the option of using ERP to boost their competitiveness. Because of the cost for implementation, SMEs remain cautious and do not want to implement this technology. Yet, ERP implementation is well-worth the cost. ERP software allows companies to run their operations more efficiently and effectively. Unfortunately, Malaysian SMEs have a image of being slow when it comes to adopting and using ERP systems. To avoid incurring unnecessary cost, they ought to think about implementing ERP prior to making major expenditures.