How to Choose an ERP System for Your Business

There are three kinds of businesses that purchase ERP systems in Malaysia that are small-sized businesses (with up to 100 employees) and large enterprises (with a hundred or more employees as well as a good computer department). In this post I’ll explain the distinctions between these two kinds of companies and offer an example of the different types of companies. Understanding the differences will help you choose the ERP system most suitable for your company’s requirements. Here are a few examples of how ERP systems can be beneficial for different kinds of firms.

The expense of an ERP system can be a significant expense.

There are two main kinds of ERP installation expenses: cloud-based and on premises. Which is the best choice for your business depends on how much infrastructure you have to work with. Most SMEs located within Malaysian industrial parks are afflicted with low infrastructure and thus are inaccessible to internet. Also, you should take into consideration whether or not the staff you employ are competent in controlling the ERP deployment. ERP cost of deployment in Malaysia are usually broken down through software licensing and implementation services. There is also an annual capex that is recurring.

The first is IT resources. The vendor must balance demands of the top management with the demands of employees at the working level, as well as regulations. A ERP deployment in Malaysia as an example can cost upwards to US$1,000,000. This is where the IT tools play a crucial role. ERP cost of implementation in different countries are often less expensive. Malaysian SME owners should also be aware of these aspects when investing in ERP systems.


In Malaysia, SMEs have been reluctant to implement ERP systems despite its potential advantages. The country has a very poor rate of adoption, with only 10% of manufacturing SMEs using ERP. This low rate of ERP adoption is likely because of a variety of causes. Lack of ERP knowledge is one of them. As a result, ERP isn’t yet considered utilized as a standard technology within SMEs. These are the key points that you should consider when looking into ERP.

Be aware of how big your enterprise. Smaller businesses are more likely to have limited budgets and fewer IT personnel. But, if your organization is located in the mid or larger-sized category it’s likely that you have an in-house IT department, which requires an ERP solution. Larger organizations have more workers and better infrastructure. Therefore, choosing the right ERP solution is crucial.

Options for integration

Malaysia is seeing an increase in ERP implementations because of the low price and efficiency of administration. However, the country isn’t yet at the forefront when it comes to adopting advanced technologies or enhancing its standing among suppliers. Manufacturing in Malaysia isn’t quite as well-developed in R&D and adopting the latest technologies in comparison to other nations. This can make the ERP system implementation in Malaysia challenging, since it will not only make the company less competitive however, it will hinder companies from adapting to changing markets.

ERP software is available both in cloud and in on-premise settings. The selection of infrastructure depends on your needs. Also, it is crucial to consider the skills and experience of the internal staff in managing the system. ERP cost of deployment is usually separated into software licenses and implementation services. Subscription plans permit you to enjoy the many benefits of ERP systems but you’ll have be responsible for an annual capsex. Prior to using the program, make sure that you have calculated the cost of the initial investment.

Cost of implementation

The expense of ERP software for ERP software in Malaysia is lower than other countries. A lot of large corporations contract out their CRM and accounting functions to Malaysia. This could cause huge economic losses. The country is estimated to be able to lose anywhere from one to three million dollars every year due to insufficient ERP software and inadequate staff training. In this regard, it’s advisable to consider investing in an Malaysian ERP system with a reputable supplier. If you choose the best ERP software, companies are able to benefit from a flexible ERP solution and lower total cost of operating.

SME’s in Malaysia have the potential to use ERP as an advantage tool in order to expand their market share. SMEs are hesitant to adopt ERP because of its high price. However, the advantages of using ERP can be well-worth it. ERP systems allow organizations to manage their business more efficiently and effectively. However, Malaysian SMEs are notoriously slow in adopting and implementing ERP systems. It is recommended that they consider the implementation of ERP software before they invest in major projects to avoid excessive costs.