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Cost of ERP Software in India for Small Business

Cost of ERP Software in India varies from product to product depending on weight of the product.

Not all ERP has all the features available and some doesn’t even qualify under ERP.

So the lesser the features, the lesser is the cost and vice versa.

And same way the cost of implementation also varies from vendor to vendor.

So license cost is different from cost to implementing the business solutions as it includes training, customization and making it operational.

However implementation cost is an one time expense for setting up business processes and for configuring the software with the right flow of information across departments.

ERP cost is an important factor for micro enterprises who are planning to implement ERP solutions.

Today lot of small businesses are looking forward to grow their business with Enterprises Business Software.

The industries which falls under large scale enterprises are already well equipped with IT resources and infrastructure.

However as we dig deep into the small and mid sized business they can reshape their business with ease today.

Because SaaS platform is cheaper and small business can afford it today to drive efficiency and growth.

Small business work and operate largely on manual processes because of lesser manpower and infrastructure.

So for small businesses ERP focused on the life cycle for minimum processes under one roof  is extremely beneficial

So what should be the  cost of ERP Software for small business firms and micro enterprises in India?


Total Cost of ERP = License Cost + Implementation Cost

Typically in India people and business owners have adjusted themselves with the ideal way of manually managing their resources.

It is not as easy as any other business software to implement ERP solutions by micro enterprises and small and medium business.

The reason behind that is they lack systematic approach and manpower sustenance for their organization.

However we can see today there are many software industries in India which can help reshape their business processes and maximize efficiency.

The software industries has come up with the ERP solutions online for the small and medium businesses.

Most of the ERP systems are cloud based SAAS platform basically known as online ERP Solutions.

The benefits of SAAS platform gives micro enterprise take advantage of quick and easy access to data and sharing of information in and out of the organization.

And it is also cost effective as businesses have the option to pay monthly, quarterly or annually and use the pay as you use model.

Normally a 5 user ERP system may cost you around 1.5 Lakh to 2 Lakh, compared to the product’s features, scale ability and ease of using the application.

This cost includes the license cost plus implementation cost, however prices may subject to change as per software company policies.

All ERP’s  are good, however without going deep into the details of ERP market.

Let us focus on some of the important cost versus quality factors in successfully implementing ERP solutions for the micro small and medium enterprises.


Cost of ERP Software in India versus featured functionality

So as we know SAAS based ERP are subscription based.

Micro enterprises and small business in Indian market are yet reluctant to invest on such products.

Probably they are trying to find out more from the system compared to the budget.

So most of the failure cases on ERP Implementation also comes from the small and medium business.

Because most of the businesses are unaware of the money material and manpower operation that is really needs to make an ERP implementation successful.

However such investments go overhead for an enterprises which falls under the micro segments.

Scaling business and enterprises with SAAS based ERP is one of the best option for growing enterprises.

The important point of discussion as a result is to make aware the micro enterprises the true value of SAAS based ERP products.

If an enterprise wants to grow they must go for  solutions which are best for scalability of business.

Micro enterprises needs to understand that ERP is a vast product.

But to make micro enterprises fit into the product, the software industries have cut down most of the features.

Which is why number of entries are reduced along with business processes.

This is viable because cost factor matters, manpower matters,  resources matters when it comes to investing on such resources.

Adding high end features and improving the quality of an ERP product is just a matter of cost.

However you can invest on those features as your business grows.


So what does it takes initially to launch an ERP system for your Enterprise?

The true power of SAAS based ERP comes with auto upgrades and this provides efficiency for long run growth of the enterprises.

Software industries are trying to make ERP products as simple as never before along with only what is required.

So what your initially need  is the simplest inputs that you can feed into the system and the simplest output available via MIS reporting.

Making much lengthy inputs and processes initially would not be the right way to start for a small business.

The same thing comes for reporting as well.

And you can configure MIS Reports later after the simplest day to day data entry process has began.

And you are all set up with your end to end ERP solution.

After you have made this, its time to go for long input processes and generating the best MIS dashboard and KPI needed for deep insights on all modules.

So make your business grow with a successful ERP implementation plan.



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