I’ve noticed how ERP software has become a must-have for businesses of all sizes, not just large enterprises. With rapid changes in technology, globalization, internet marketing, and mobile adoption, ERP systems are essential for staying competitive.
From my perspective, what makes ERP even more valuable today is its cloud-based nature. Businesses can now access real-time data analytics, improve collaboration, and streamline operations anytime, anywhere.
In Singapore, more companies are turning to top ERP vendors to find systems that are both powerful and cost-effective. If you’d like to dive deeper into how ERP software can transform your business, check out our full article here.
Table of Content:
Table of Content
Key Takeaways
|
Every business’s workflow may differ and hence, many business find the existing ERPs not flexible enough to accommodate their workflow. Those who can afford a new ERP specially made for their business are opting for a custom-made ERP solution to be implemented within the business.
This is feasible only for large businesses with multi-location facilities as it will improve their workflow and increase their credibility. Even though the best ERP solutions have been in the market for more than 20 years now, cost remains a major obstacle for many businesses to adopt an integrated ERP implementation for their businesses.
Shared ERP Solutions
With the invention and popularity of cloud solutions, cloud-based ERP solutions are also getting popular. This has made ERP software solutions, such as HashMicro, more accessible to all business. Since the cloud, ERPs share valuable resources like infrastructure (IaaS), software (SaaS), and the platform (PaaS), making they more affordable to all businesses using the shared resources.
Here the major concerns are data security and the low levels of customization that cloud ERPs offer in the shared platform.
Another issue is that all the required modules may not be available with the same vendor. Currently, multiple ERP vendors are yet to come under the same umbrella for sharing. So if there is sharing of popular modules between the ERP vendors.
Generally, these shared complete ERP solutions are usually offered on monthly or yearly subscriptions. The charges depend on the type of technology used, the type of sharing chosen, and the modules subscribed for.
These expenses form a part of the operational expenses of the businesses as against the convention ERP which is usually a capital expense for the business.
ERP Price Estimation
When investing in an ERP system, it’s important to understand the true costs to make the right business decision. Industry data shows that companies typically allocate 1–3% of annual revenue to ERP implementation, with 95% experiencing improved business processes after adoption.
The cost, however, can differ widely based on organizational size, required features, and the chosen vendor. While comparisons may seem complex, ERP systems ultimately deliver long-term savings and greater efficiency.
How Much Does an ERP Cost?
For small to mid-sized businesses, ERP implementation typically ranges from $10,000 to $150,000, while larger enterprises may invest well over $1 million depending on scope, customization, and user volume.
It’s also essential to account for ongoing expenses such as training, upgrades, maintenance, and support. The more customized and complex the solution, the higher the total investment over its lifecycle.
Typical ERP costs by business size:
- Small businesses ($1–10M revenue):
- Software: $1,500–$10,000
- Implementation: $1,500–$15,000
- First-year total: $3,000–$25,000
- Mid-Market ($10–50M revenue):
- Software: $10,000–$50,000
- Implementation: $10,000–$75,000
- First-year total: $20,000–$125,000
- Large & Enterprise ($50M+ revenue):
- Software: $50,000–$100M
- Implementation: $50,000–$150M
- First-year total: $100,000–$250M
Major Factors That Influence the Pricing of ERP Software in Singapore
Modules, technology, and implementation methods; all these aspects are important in determining the rate of the ERP quoted for a business. Some of the major factors that affect the pricing of ERP software in Singapore are:
1. On-site or Cloud implementation
This is one of the main factors that decide whether the ERP will cost the capital or the operations of a business. On-premise ERPs are intangible capital assets to a business.
It is equivalent to buying an office space where the office will function for a long time. The software can be customized extensively following the workflow of the business. Unique modules to address unique processes can also be identified and added to the ERP.
High-level data security is possible in this type of implementation as the data is created and maintained within the business. This will be the most expensive method for implementing ERP software in Singapore in a business.
Supporting resources and maintenance will also add to the implementation cost. Cloud-based ERPs will add to the operational cost as the service is offered to the business on a periodic subscription.
Though data security is the vendor’s responsibility, very limited customizations are allowed in this type of implementation. Cloud ERP is a better choice, especially for all business in the startup stage as the risk and cost involved are comparatively low
2. Technology
The technology used for creating and deploying the ERP system is an important factor that determines the price of the ERP. Obviously, the quality and competency of the ERP solution come at a price.
An efficient technology will cost more and so will the resultant ERP. You can use Hashmicro’s ERP accounting software in Singapore to grow your company.
3. Modules ERP software Singapore
The number and functionality of the modules subscribed to or purchased will also be a major factor affecting the price of the ERP software in Singapore. Businesses can avoid subscribing to the rarely used modules but make sure they can be integrated at a later stage.
The start-ups can concentrate on the essential modules identified by an in-house industry expert. Since all ERPs are modular, the most wanted and the most complicated modules like Accounting, MIS, and Inventory management will usually cost more than the subsidiary modules like Purchasing and POS.
4. The level of customization
This is relevant more in the case of an on-premise implementation of the ERP solution. Therefore the product will cost more depending on the type and level of customization. Usually, the ERP vendors charge for customizations based on the number of changes, their complexity, and where they affect the integrated modules of the ERP software in Singapore.
5. Type of sharing
This is relevant for cloud ERPs. Cloud-based ERPs work in 3 ways; sharing the software (SaaS), sharing the infrastructure or the server (IaaS), or sharing the platform (PaaS). Depending on the type of sharing chosen, the subscription charges will change.
6. The number of users
The number of users allowed to operate the ERP is also relevant when it comes to shared ERPs. The shared ERPs usually allowed a basic number of users per subscription and charged extra for each additional user.
7. The number of implementation
This is relevant in the case of on-premise implementation involving multiple locations. So if a separate instance has to be implemented in each location of a particular business, each implementation is charged separately depending on the implementation location.
8. Additional services opted
The ERP vendor will usually provide some additional services like data backup, additional data security, dedicated server, dedicated network, etc. for on-premise implementation, the vendor usually agrees on AMC and charges extra on the updates and upgrades periodically.
For the best ERP software in Singapore, a technology upgrade or a functional upgrade as a part of a government mandate may attract additional charges.
9. Experience and Brand
Last but not least, the brand name matters. So the price of the ERP will profoundly depend on the brand names attached to it. An experienced and well-placed ERP vendor will charge more than a startup ERP vendor.
The competition is usually in the middle and lower levels of ERP vendors. The big players know their worth which they have made over the years of experience in the market.
Conclusion
When it comes to ERP adoption, pricing will always vary depending on your business size, required modules, and the chosen deployment method. For medium to large-scale businesses in Singapore, investing in the right ERP solution is not just about cost; it’s about long-term value and scalability.
HashMicro’s ERP Software is designed to meet these needs, offering flexible modules, advanced technology, and reliable support to ensure smooth implementation and sustainable growth.
If your business is ready to take the next step, HashMicro can be the right partner to streamline operations and maximize ROI. Discover how HashMicro can transform your business by requesting a free demo today.
Frequently Asked Questions
-
What is ERP software in Singapore?
ERP software in Singapore is a centralized system that integrates key business processes, such as finance, HR, inventory, and sales, into one platform to improve efficiency and decision-making.
-
Who should use ERP software in Singapore?
ERP software is suitable for businesses of all sizes, from startups to large corporations, that want to automate workflows, reduce manual errors, and gain real-time visibility into operations.
-
Why choose ERP software in Singapore?
Singapore-based ERP providers often offer localized features such as compliance with local tax regulations, multi-currency support, and integration with regional business systems.
