Appropriate ERP for Your Business

How to Choose an ERP System for Your Business

There are three types of businesses that purchase ERP software in Malaysia which are: small companies (with up to 100 employees) as well as large companies (with 100 or more employees and an adequate IT department). In this article I’ll explain the difference between the two kinds of companies and offer examples of each. Understanding the differences will assist you in choosing the ERP solution that best suits your company’s needs. Below are some instances of how ERP systems could help different types of companies.

Costs of ERP software

There are two main categories of ERP implementation cost: on-premise and cloud-based. Depending on the infrastructure available the one that will work best for you depends on what your company has. A majority of SMEs that are located in Malaysian industrial parks have inadequate infrastructure, and therefore are inaccessible to internet. It is also important to consider whether or not your staff is capable of controlling the ERP deployment. The reality in Malaysia, ERP deployment costs typically are separated into licenses for software, implementation services, and annual recurring cost of capital.

IT resources fall into the first group. The company must be able to balance the requirements of top management, with the needs of working-level personnel, and regulatory requirements. A ERP deployment in Malaysia, for example, can cost upwards to US$1,000,000. This is when IT resources play an important function. However, ERP implementation costs are typically much lower in different countries. Owners of Malaysian businesses should take into consideration these points when purchasing ERP software.


Despite the potential benefits the potential benefits, even with the potential benefits, Malaysian SMEs have been slow to implement ERP software despite the benefits. In Malaysia, there is a low adoption rate, with only 10% of all manufacturing SMEs having adopted ERP. There are many reasons that explain why ERP adoption has not been wide-spread. Insufficient ERP awareness is one factor. As a result, ERP isn’t yet considered a mainstream technology in SMEs. This is one of the main points to take into consideration when evaluating ERP.

Consider your company’s size. If you’re a small business with a small budget, then your the IT staff within your company are likely to be small. If your business is large or mid-sized, however it is likely that an ERP system will likely be required from the department responsible for IT. Large corporations, on contrary, are staffed with a lot of employees as well as a decent infrastructure. Thus, picking the appropriate ERP solution is crucial.

Integration options

The implementation of ERP software has gained popularization in Malaysia because of a number of factors, including to relatively low costs and poor government management. It hasn’t had the ability to be a leader in adopting new technology as well as improving the competitiveness of its suppliers. This means that the country’s manufacturing industry isn’t quite on par with other nations regarding R&D and the adoption of new technology. The implementation of an ERP system in Malaysia isn’t easy because it will render the country less competitive , and hinder companies from being able to adapt to changes in the market.

ERP Systems can be implemented as cloud or on-premise The best choice depends on the availability of infrastructure. It is also crucial to consider the capabilities and expertise of internal employees when managing the system. ERP deployment costs are often separated into software licenses as well as implementation services. If you select an option of subscription that allows you to benefit from the ERP software, but you will be charged an annual expenses for capex. For this reason, it is important to determine the initial amount prior to implementing the software.

Implementation costs

The price of ERP software in Malaysia is significantly lower compared with other nations. Many large companies outsource their the management of their accounting and CRM processes to Malaysia which results in massive economic losses. It is estimated that Malaysia will be able to lose anywhere from one to three million dollars every year due to inadequate ERP software as well as poor staff training. In this regard, it is advisable to consider investing in an Malaysian ERP software with a reputable company. With the right ERP system, businesses are able to benefit from a flexible ERP system as well as a less total cost of running.

Small and medium-sized enterprises in Malaysia can use ERP as an advantage tool in order to expand their market share. Because of the cost of implementation SMEs remain hesitant and do not want to implement this type of technology. The benefits of adopting ERP are well worth it. ERP technology allows organizations to run their business more efficiently and effectively. Yet, Malaysian SMEs are notoriously slow to adopt and implement ERP system. The SMEs should consider the possibility of designing ERP systems before investing on major projects in order to prevent excessive expenditures.