ERP Software Popularity
Enterprise resource planning or ERP is not limited to large corporations. Nowadays, even small and medium enterprises adopt ERP systems. They plan, procure, operate, manage, and upgrade the best solutions. They rely on famous ERP software trends to improve business productivity, profits, and name. Is ERP becoming a market essential? According to global market predictions,
- The ERP market in 2016 was estimated to be US 35$ billion
- By 2018, the turnover increased by US 4$ billion to US39$ billion
- The forecast for 2021 expected to peak at a value of US43.4$ billion
An integrated ERP solution facilitates business processes and inter-department communications. It manages the company’s finances, supply chain, sales, customer relations, human resources, etc. If you are looking for ideal choices, it should include on-premise systems, cloud-based solutions, and off-the-shelf ERP software.
But, screening ERP solutions and finding the most popular product is not easy. You have to trust the experts who observe the market trends. These software industry specialists also understand product features, prices, and functionality. They deeply analyze the trending, competitive solutions.
High-quality criteria
They rate ERP software based on qualitative and quantitative indicators. They also factor in deployment complexity, product pricing plans, upgrade options, and support services –
- Customer adoption metrics should show a higher rate.
- Cost per acquisition or CPA should also be lower.
- The retention rate, ROI, and lifecycle value of ERP must be higher.
- The average time to implement a solution must be more economical.
- Low re-engineering and training requirements
- A large number of business-friendly features
- Functional depth and breadth should also be very high.
- The solution must be scalable, flexible, and configurable.
- Cloud-based software should be mature and reliable.
- It should support 3rd-party integration with great ease.
- The vendor should have a strong network of partners and integrators.
- The vendor must offer a viable product with a clear-cut roadmap.
Beyond these, the cost is an important decision criterion.
- Cost of consultancy services:
o Planning phase:23%
o Design, development, and implementation:21%
o Internal salaries and miscellaneous expenses:12%
- Project’s infrastructure cost:
o Software – 23%
o Hardware – 21%
Top 10 ERP Solutions :
1. Oracle NetSuite
It is the world’s most popular and flexible ERP service. Use this famous ERP software for managing finance, customer relations, and inventory. You can also host and operate first-rate online stores. It is an integrated, scalable cloud solution for large enterprises.
Product Highlights :
Managers can,
- Streamline mission-critical business processes
- Plan, budget, manage, and forecast finances to remain competitive
- Integrate sales orders, finance, price fulfillment, and product returns
- Increase the product’s real-time visibility and market them very quickly
- Use a single, collaborative platform to manage the supply chain
- Optimize accurate procurements, inventory, in/outbound logistics
- Create a customizable and scalable business ERP for a futuristic company.
- Create business intelligence reports with visual analytics and data.
20K customers across more than 200 countries use Netsuite.
License Fees :
- Basic costs: $999 per month
- Access costs: $99 per month per user
2. Microsoft Dynamics 365
Experts recommend it for customized workflows and 3rd party system integration. It is a famous ERP software from Microsoft and is true to its name with traditional CRM and cutting-edge ERP applications. They ensure 24X7 connectivity of employees, data, operations, and customers.
Flexible Services :
- Individual apps to cover specific business processes of an industry
- Single-stop, comprehensive, and accessible solution for the users
- Manage finances, inventory, transport, and warehousing operations
- Tools to handle accounting, supply chain, and back-end activities
- Build customer relations to increase sales leads and conversions.
- Personalized customer services with access to centralized data
- Plan, schedule, and collaborate on projects to increase profits.
- Retail-specific unified digital store with immersive customer experience
- Hire, onboard, and manage talent with the automation of core HR
processes
Pricing Plans (per user per month) :
- Retail Industry – $170
- Project Automation – $95
- Business Central – 70$ for Essentials, $100 for Premium Edition
- Talent management – onboarding is 8$ while the full app is at $40
- Sales – $65 for Professional and $95 for Enterprise Edition
- Customer services – $50 for Professional and $95 for Enterprise Edition
3. Oracle ERP Cloud
The Cloud-based application suite handles various enterprise functions. It is a famous ERP software that automates project management, procurement, finances, and accounting activities with nine modules, including AI apps, NetSuite; risk, talent, and supply-chain management.
Top Features :
- Cloud-hosted accounting software with multi-OS, online access
- Ideal ERP solution for mid-sized and large scale enterprises
- You can plan and analyze finances, revenues, and risk factors
- Manage the complete product lifecycle without any glitches
- Accurately assess enterprise performance for business growth
- The software is fully compliant with all the governance rules
Pricing Plans (per user per month) :
- Financial Reporting compliance $175
- Advanced Access Controls $150
- Advanced Financial Controls $80
4. IFS
IFS is a simple and flexible suite that has won over the hearts of a million global users. This famous ERP software is a cut above the rest due to its component-based model. It is best suited for manufacturers, distributors, asset management, and other service-oriented businesses.
Prime Features :
- You can plan resources, manage assets, and services at the enterprise-level
- The software can be easily implemented, activated, and upgraded
- It is a scalable solution that can respond quickly to market dynamics
- IFS comes with a plethora of impeccable and productive functions
- The modules manage materials, sales orders, finances, and supply-chain
- You can also handle customer relations and production processes
- The software facilitates discrete and project-based manufacturing
- Managers receive advanced summaries on engineering and human capital
License Fees :
$300K to $2000K for 40 to 5000 users, approximately
5. Sage X3
It is an excellent alternative to SAP and Oracle Cloud solutions. Sage X3 is a famous ERP software that appeals to small and mid-size companies. Its limited functionality does not satisfy global enterprises with large-scale manufacturing, supply chain, and distribution networks.
Key Benefits :
- The best solution for a company with 50 to 200 employees
- It has high ratings for convenience, functionality, and ROI.
- Sage X3 works well with Windows, Linux, and all web browsers
- Integrates finances, sales, inventory, and customer services
- Efficiently automates distribution and manufacturing operations
- Business intelligence reports ably assist digital workflows
- Captures all the workflows, documents, and transactions accurately
- Easy to configure for users, business requirements, and preferences.
Costs per 10 users :
- Perpetual license is $45000 per year
- The subscription is $26640 per year.
6. SAP S/4HANA
The business suite with an in-memory database is a crowd favorite. This famous ERP software can plan and manage production and human capital activities. It also controls operations and manages product lifecycles, projects, sales, distribution, and investments.
High-end Features :
- Business-specific modules for general ledger, logistics, materials
management, etc.
- You can assure high-quality during goods receipt processing
- AI-powered digital assistant, CoPilot, with chat functions
- Continuous financial closing with faster business insights
- Advanced cloud apps with competitor analysis and real-time accounting
- Sophisticated modules for CRM, Business Intelligence, and Blockchain
- Advanced business application programming (ABAP) server with its own
database
- Flexible, next-generation products for test automation, data migration,
etc.
Infrastructure as a Service (IaaS ) cost :
- $3595 per month for 40-core 512 GB box
- $6495 per month for 80-core 1 TB box
7. Salesforce
Salesforce is not just a core customer relationship management (CRM) service anymore. The Cloud-based company also offers a suite of enterprise applications. This famous ERP software can automate marketing activities. It is also ideal for data analytics and application development.
Main Features :
- Salesforce 360 connects customers across CRM, sales, marketing, apps,
and analytics
- Customized, scalable cloud-based solutions to assist SMEs and larger
companies
- AI-powered productivity with automated data capture and processes
- Up-to-date analytics to generate useful business insights
- Nurture sales leads, engage customers and achieve higher conversion
rates
- Apps for e-commerce stores and industry-specific business operations
- Packaged APIs for data integration and core capabilities extension
Pricing Plans (per user per month):
- Essential : $25
- Professional: $75 to $100
- Enterprise: $150 to $175
- Unlimited: $300 to $325
8. Infor M3 and CloudSuite
Infor has 30 years of experience in assisting SMEs and larger companies. Their famous ERP software is a collection of applications, including a CloudSuite. It automates and manages the workforce, product lifecycle, enterprise-level resources, and assets.
Strong Points :
- Rich product portfolio due to the acquisition of 30 other companies
- ION middleware technology suite to connect Infor applications.
- Industry-specific solutions with M3 focusing on the manufacturing
sector.
- Flexible deployment with multi-site planning and intuitive UI
- Connects people, business processes, devices, supplier, and customer data
- Generates role-based critical insights and alerts to streamline workflows
- 3rd largest ERP provider with more than 70K customers in 164 countries
Achievements :
- 33% productivity increase due to M3 for sports manufacturers
- Home improvers achieved a 15% increase in inventory turnover
- Data migration in just 23 hours to reduce runtime by over 50%
Prices :
- SaaS monthly license fee starts at $5 per user
- Customization costs: $2500 to $25000
- Data migration costs: $500 for 1K records to $25000 for 1000K records
- Training costs: $500 to $5000
9. Workday
Workday is an enterprise-level software and cloud solutions provider that disrupts traditional business practices and brings the employees to the center. This famous ERP software can manage the planning, human capital, and financial processes.
It empowers the remote workforce and optimizes operational resilience. It facilitates mobile access and ensures data security through 2-factor authentication. You can use Workday to recruit, engage the employees, manage payroll, track attendance, and leaves.
Best Features
- It is fantastic software with an excellent range of functions
- Mid-sized to large enterprises benefit from the cloud platform
- The software can be used by companies with 500 to 10K employees
- This seamless Cloud ERP system manages finances, HR, and planning
processes
- You can do project accounting and manage inventory, tools, and revenues
- Workday for schools manages curriculum, admissions, records, financial
aid, etc
- It has Prism Analytics to create consolidated reports using 3rd party data
- Their top customers include Netflix, Airbnb, TripAdvisor, national
geographic, etc
Pricing Plans:
3 Year minimum contract at $100 to $200 per user per year
10. Service Now
Service Now offers a Cloud-based platform for business process automation. It helps employees work intelligently with native AI techniques. You can also carry out intelligent analytics using accurate performance metrics. You can use Service Now to automate inter-related business processes. It is not so much a famous ERP software for small companies, but its array of hi-tech services proves useful for specialized businesses.
The proprietary platform can be helpful to quickly build desktop and mobile apps. Besides, you can develop customized workflows to satisfy specific business requirements.
Scalable Capabilities
- Use the Flow Designer to digitize workflows across multiple apps and
systems
- Create end-to-end digital solutions using the native Integration features
- Build and deploy intuitive business mobile apps with a native look and feel
- Develop intelligent chatbots for scalable communications and dispute
resolution
- Use machine learning techniques to predict future trends and market
challenges
- Generate excellent reports and use powerful apps to access the centralized
database
- Build customized applications using professional engineers and no-coding
dilettantes
- Receive cloud insights and integrate enterprise resources using tools and
APIs
License Price:
$10K per year (approximately)
Summary
In conclusion, ERP automation is essential for SMEs and large companies to compete in today’s cutthroat competition. They purchase the most famous ERP software based on expert advice. Remember that just because a vendor is renowned in the market, it does not mean that the product is right for you. The best package depends on your needs, style of operation, industry, and so on. The industry watchers rate the solutions based on sales figures, growth factors, and market trends. They also factor in qualitative attributes such as the software’s flexibility, adaptability, scalability, security, and reliability.
ERP solutions are available as cloud-based services and on-premise systems. Customers also purchase mobile-friendly off-the-shelf products. They choose a customized solution or software suite based on business needs. And the ERP software’s popularity strongly influences their decisions.
You don’t need to choose only from the top 10. There are other un-ranked state-of-the-art solutions. They include abas ERP, SYSPRO, Epicor, Rovisys, Plex Systems, or Deacom. You can also opt for Priority Software, IQMS, Business Central, Aptean, or Acumatica.
Do you need to buy a new ERP system? According to a recent study, below is the percental of companies falling under each criterion.
- Replace an outdated ERP system: 49%
- Replace in-house, inefficient solutions: 16%
- Need for new accounting software: 15%
- Replace non-ERP systems: 10%
- Brand, new purchases: 10%
Industry-wise ERP Implementation
- Manufacturing: 32%
- IT and Service Sector: 18%
- Professional & Financial Services: 17%
- Public Sector: 11%
- Wholesale & Distribution Businesses: 6%
- Retail Industry: 5%
- Energy, Power, and Resources: 5%
- Healthcare Industry: 4%
● Market Giants
1. Tier I :
- Best Software: SAP S/4/HANA, Oracle Cloud Apps, Infor M3, Infor LN
- Annual Revenue Of The User: $750 million-plus
2. Tier II – a :
- Best Software: Microsoft Dynamics 365, IFS, Sage Enterprise
Management
- Annual Revenue Of The User: $250 to $750 million
3. Tier II – b :
- Best Software: Infor CloudSuite, NetSuite, abas, IQMS, Plex, Business
Central, SYSPRO
- Annual Revenue Of The User: $10 to $250 million
4. Tier III :
- Best Software: Sage ERP 100, Sage ERP 300, Aptean
- Annual Revenue Of The User: less than $10 million
How Much Does ERP Software Price In India?
Introduction
In a dynamic marketplace, businesses cannot be effective if run in an ad hoc manner. You have to optimize daily operations and find automated solutions. In the last few years, global companies have seen a sort of digital resurgence. They look towards cost-efficient ERP solutions to streamline various processes.
The best ERP systems automate various operations with a single window to manage. They digitize supply-chains, accounting, customer relationships, sales, and marketing. They also manage procurements, projects, risks, and compliance at a low price mechanism. Check the ERP software price in India and choose the best solution.
Fortunately, customers can opt for an on-premise or cloud-based ERP based on their budget and requirements. They can plan and execute a tight budget to minimize resource crunch. They can choose the best proprietary or open-source ERP solutions. The costs are in the range of 60k to 20 lakhs based on features, total users, functions, etc.,
Value Of ERP Solutions
Enterprise Resource Planning or ERP is a complex and essential business process. Automated solutions hasten operations without affecting accuracy or quality. And the digitized system benefits micro-scale to large enterprises. But still, be clear about ERP software prices in India so that you do not burn your working capital for a software package.
Luckily the best ERP system or service comes in modules. These automated components manage specific business operations, and you can choose an appropriate solution with some or many functions. They include inventory, finance, payroll, sales, marketing, HR, operations, and so on.
Or you can choose a comprehensive, integrated ERP solution. You can get a reliable software package for around 1.5 lakh to 2 lakh Rupees. For a corporate, there are global brand ERP software packages. Their cost range is 25 lakh to 1 crore, but for SMEs, many vendors offer 5 to 6 lakh worth packs. India’s small and medium enterprises have around 1000 employees. They earn revenues in the range of INR 25 lakh to 10 crores per annum, particularly in the manufacturing sector. They don’t have to give ERP access to all the users or company employees. So, the cost in the range of 60,000 to 3 or 5 lakh Rupees is affordable.
Implementation Costs In India
The ideal business solution has to match a company’s budget. It should be cost-effective and match specific business requirements. Do some research and invest positively after finding out the exact ERP software price in India. Remember that it is a one-time, long-serving managerial decision.
ERP vendors offer a wide variety of impressive solutions. For example, Catalyst is a free ERP software for a single user. If you have to add more users, then the pricing policy kicks into action. And there are vendors like ERPNext whose inexpensive offers cost INR 4000 per user per year.
The implementation costs play a significant role when you consider customized solutions. A construction magnet or a real estate or travel agency has specific needs. The ERP set-up price can range anywhere between INR 20 lakh to INR 40 lakh.
There are also large corporate providers like well-known SAP. Here, the ERP specialists configure, activate, and maintain a total solution. This high-end market product will cost anywhere between INR 50 lakh to even one crore Rupees.
The implementation prices depend on several factors such as –
- Choosing the license fees and setting up a system for X number of users
- Installing a set of training modules that improve employee acceptance
- Selecting a rich set of features that are in tune with the company’s needs
- Customizing the solution with sales, HR, marketing, CRM, etc., modules
- Ensuring anytime, anywhere access with mobility features (Smartphone apps)
- Tackling legacy compatibility issues and improving data migrations
For implementing a complex solution like SAP-
- Implementation Period – 6 to 9 months in a phased manner
- Total number of end-users – 200 to 600
Cost-effective Criteria
Some vendors offer a fixed price for their proprietary ERP system. But these solutions also have a fixed number of features and modules. You can also purchase a limited number of licenses from them at a static price. Beyond those vendors, ERP software price in India is entirely dynamic and unpredictable.
The variability in costs is mainly due to the associated factors. Apart from the implementation strategy, you have to look at the total number of users. The infrastructure needs, in terms of hardware and software also have to be accurately calculated.
Also, there are many other generic and business-specific requirements. They include add-ons, type of databases, backup options, reporting tools, on-site or remote connectivity, etc. Some vendors are transparent about their up-front prices. They don’t have hidden, additional costs.
For example, A vendor like Digitech offers ERP software at INR 25,000. You can also purchase industry-specific software in the range of INR 12,000 to INR 20,000 per annum. It is a web-based, customizable solution that handles procurements, HR, finance, and supply chain operations.
Low-Cost Ideas
- Choose a solution with a one-time purchasing cost only
- It should not have any recurring subscription costs either
- Do not ask for too many customization options in ERP software
- Limit the total number of users and their accessibility options
- Go for low-cost add-ons instead of upgraded license fees
- Accurately calculate all the hardware and software demands
- Negotiate annual maintenance and support costs beforehand
- Do an early calculation of the 18% GST and other state-level taxes
- Assign a project manager or team leader to liaison with vendor experts
Costs Of Customization
The deployment of an ERP solution is fraught with many dangers. You have to prepare, plan, and execute a viable deployment strategy. Fix a budget and stick to the schedules to minimize the implementation expenses. Also, make sure you reduce the higher costs of ERP customization.
The ERP software price in India goes up due to business-specific demands. For example, the fashion business has very little in common with a real estate company. A generic, off-the-shelf solution may lack all the necessary features. Companies find it best to have a customized solution to satisfy the client’s requirements.
But this customization process is not simple or straightforward. For example, consider a manufacturing company with five factories or sites. A full-fledged ERP platform with all the business-related core functions and additional customization features will be costly.
Its deployment costs are estimated anywhere between INR 4 lakh to INR 15 lakh. Don’t be perturbed by the price as the solution is comprehensive. The company receives an ERP solution to manage purchases, sales, inventory, finance, and shipping.
The high-priced solution also offers CRM and customized tender management. And the company’s business documents are all customized. The business logic and workflows also get streamlined and set up for result-oriented productivity.
Customization is just to the on-premise systems alone. You can also choose an integrated cloud solution and get charged for the total services per user per month or year. And there will be no monthly rentals on the vendor-provided hardware and software.
The customization costs can go down by opting for a vanilla ERP. It is an out-of-the-box deployment technique without core design modifications.
- Consumer Electronics
The traders and affiliated service providers have to pay a standard cost. The estimates range between INR 250K to INR 1200 K. The buyer receives a fully customized, integrated solution with service management systems and all the ERP modules.
- Construction Business
Real estate builders, developers, and agencies benefit from customized ERP. The solution costs range between INR 800K to INR 2000K. But, the buyer gets a single platform to manage all the complex needs. He has multi-device, multi-location access to project and sales management systems. He can also manage the employees, brokers, and customer networks with ease.
Cost estimation percentages by ERP activity-
- Customization – 40%
- Re-engineering – 30% to 35%
- Training Costs – 35% upwards
- Upgrades/Updates – 30% plus
- Integration Costs – 28% to 35%
- Maintenance Costs – 28%
Why Customer Support Matters?
There are no cheap ERP solutions, as the system is very complex. The cost estimates have to factor in licensing, subscriptions, deployment, data import, and export. Besides, the costs of hardware, software, maintenance, and training cannot go unnoticed either.
The ERP software price in India depends on a large number of unavoidable expenses –
- Personnel Costs
Legacy systems and data conversion require expertise. The IT team has to get augmented by spending on hiring new talent. Specialized consultants also charge by the hour, and their services are indispensable for complex deployments.
- Training Expenses
Training is a hidden and hard-to-estimate cost for any business. The new software has different file formats, documents, purchase orders, etc. From the managers’ point of view, it also has innovative report generators and analytics tools. You incur training expenses to make employees more skilled.
- Testing Solutions
Scripts, modules, and other functional components have to get tested. You have to ensure legacy and device compatibility. Besides, the process workflows have to get checked in real-time to prevent business breakdown. Such testing requires more resources and capital. And automated testing apps cost even more as they speed up operations.
- Customization
Customization and integration are essential for new ERP solutions as these two deployment techniques ensure business model compatibility. The ERP features and functions will satisfy the company’s specific processes. They include anything from payments to user interfaces.
- Employee Co-option
Consider employee satisfaction levels while implementing new solutions. The ERP software price in India has to factor in adaptation. Yes, the workforce has to undergo training and be cajoled and promised higher salaries. Otherwise, they may resist, non-cooperate, or delay the system.
- Re-engineering
Not many ERP systems factor in specific business dynamics. The company’s needs and business processes may undergo drastic changes. If the ERP solution is not scalable or flexible, then problems arise. But, re-engineering is a lot cheaper than customization.
- Ongoing Maintenance
It is easier to manage all of the above costs with adequate support. Always choose a vendor that offers transparent maintenance services. He has to be upfront about the cost of support, be it cloud-based ERP service or on-premise software. Consider the recurring support fees when you initially budget for the ERP product.
Cost-Benefit Analysis
As a discerning consumer, you have to do a cost-benefit analysis. Never forget the returns on investment when you purchase a tech-based solution, especially when you are spending a considerable amount of money from your capital. Thus, analyze the ERP software price in India with factors like efficiency, productivity, flexibility, etc.
Lower costs are desirable, but they are not the only criterion. If you want a cloud-powered ERP solution, then be willing to spend. You will receive benefits in the form of powerful analytics, mobile-friendly access, and social media integration.
The benefits have to emphatically outweigh the incurred costs. A higher return on investment (ROI) has to be legit within a time frame. But, a detailed analysis should factor in the intangible benefits and still be quantitative and focus on financial performance and net profit margins.
Business-Friendly ERP
Remember, around 90% of businesses get satisfied with ERP solutions. Their capital expenditure is in tens of lakhs of Rupees. And they also incur recurring costs in the form of subscription fees and maintenance charges. But still, the ERP software price in India is very well justified by them.
It is because of the large number of benefits received by the business over a long period –
- The business-friendly software is completely integrated with the workflows
- It has data-intensive features and functions to ensure reliability and accuracy
- The ERP solution automates and simplified crucial business processes
- Managers’ stress levels come down due to the all-encompassing services
- Team communications and information access become secure and fast
- Employees are satisfied and they contribute to value-added activities
- Productivity increases at all levels, from executives to the senior cadre
- Senior managers make efficient decisions based on reports and analytics
- The company’s vision and socio-cultural ideals can be realized quickly
Conclusion
To sum up, the ERP software price in India depends on different factors. The cost varies for open-source, proprietary, on-premise, and cloud solutions. Understand the ERP’s value and implement an inexpensive system that befits your company. Perform a detailed cost-benefit analysis at the initial phase.
Since ERP solutions are diverse and make sure there is no fixed or right price. For micro-companies, there are online services priced between 10k and 60k per annum and you can also opt for top-rated, integrated software. The cost is between 5 to 6 lakh for SMEs, while a corporate shells out 25 lakh to 1 crore.
Find the right balance between business-friendly features and pricing plans. Stick to a pre-defined strategy and avoid overshooting the budget and make sure the ERP service vendor also offers long-term support. Be upfront about the prices and don’t engage vendors who charge additional, hidden costs.
● Sample Pricing Policy
- Inventory Software – INR 600 per month per user (a minimum of two users)
- Accounting Software – INR 850 per month per user (a minimum of two users)
- Manufacturing Software – INR 1200 per month per user (a minimum of three users)
- Cloud ERP Software – INR 1800 per month per user (a minimum of five users)
