For accounting and IT professionals who are at the heart of business transformation, Enterprise Resource Planning (ERP) systems are no longer an option but a necessity. These systems are key drivers in bolstering efficiency, simplifying complex business processes, and ensuring informed decision-making.
Organisations are more spoilt than ever with a huge variety of quality ERPs to choose from, so choosing the right system can become quite confusing. We are here to explain the key features of the best ERP systems available in Malaysia, and help make this decision a bit easier.
Table of Contents:
- Key factors to consider before choosing an ERP system
- Oracle NetSuite
- SAP
- Microsoft Dynamics 365
- Epicor
- Infor
- Acumatica
- Sage X3
- Pro tip: avoid over-customisation
- ERP system implementation timeline
- Support and maintenance post-implementation
- ERP Partners Malaysia
Key factors to consider before choosing an ERP system
Before we dive into the different ERP systems, we want to highlight some key areas that you need to consider.
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Business Requirements and Goals: It is crucial to have a clear understanding of your business requirements and long-term goals. This includes understanding the specific processes that need to be improved, the business challenges that the ERP system is expected to solve, and how the ERP will align with the company's strategic goals. This will help your implementation partner to identify any specific customisations you may need, and will ensure a more accurate scoping and pricing so you don't get any shock implementation costs later down the line.
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Budget and Total Cost of Ownership: Implementing an ERP system can be a significant investment. Consider not just the license cost, but also the total cost of ownership, which includes implementation costs, ongoing maintenance, training, and any necessary hardware upgrades. Anticipating hidden costs can prevent financial overruns, and setting a realistic budget will help determine which ERPs you can consider.
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Change Management and Employee Training: Change management is critical in ERP implementation. The success of an ERP system largely depends on how well the employees adapt to the new system. Invest in comprehensive training programs and prepare for the cultural and procedural changes that an ERP system will bring about. Effective communication about the benefits and changes can help in minimising resistance from employees.
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Data Migration and Integrity: Transferring data from old systems to the new ERP system is a complex task, so ensure that the data migration process is well planned. This includes cleansing data, ensuring data integrity, and establishing protocols for data handling and migration. It's important to have a clear understanding of which data will be moved, how it will be cleaned up, and how it will be validated once in the new system.
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Vendor Selection and Partnership: Choosing the right ERP vendor is crucial. This decision should be based on the vendor’s experience, support services, the flexibility of their software, and their understanding of the company's industry. A strong partnership with the vendor can lead to better customisation, support, and understanding of the product. It's beneficial to look for a vendor who can act as a partner throughout the process, not just a software provider.
Overview of Top ERP Systems in Malaysia
Now let's take a deep dive into some of the top ERP systems available in Malaysia, taking into account their features, usability, customer service, and overall performance.
Oracle NetSuite
Oracle NetSuite is a globally renowned provider of cloud-based financials / Enterprise Resource Planning (ERP), HR, and omnichannel commerce software that helps businesses streamline their operations and drive growth. Oracle acquired NetSuite in 2016, marrying Oracle's enterprise expertise with NetSuite's proficiency in cloud-based solutions.
NetSuite's ERP solution is comprehensive and designed to scale with businesses as they grow, from start-ups to large enterprises. It serves a broad spectrum of industries, including manufacturing, wholesale distribution, retail, services, nonprofit, and more.
This platform offers a unified business management suite, encompassing ERP/Financials, CRM, and eCommerce. It's well-liked for its flexible, module-based approach, where businesses can add or remove functionalities as needed, keeping their operations lean and efficient.
Ideal for businesses that need a powerful yet flexible business management system, Oracle NetSuite is particularly useful for companies looking for a robust financial management system, or those operating in multiple countries requiring multi-currency support.
Pros:
- Comprehensive solution catering to businesses of all sizes, from SME to large enterprise.
- Flexible subscription pricing, allowing businesses to scale up or down based on their needs (our pricing guide explains this in further detail).
- Robust customisation options enabling businesses to adapt the software to their specific requirements.
- Strong financial management features, providing powerful accounting and financial planning capabilities.
- Efficient financial consolidation and multi-currency transactions support, ideal for businesses operating in multiple countries.
- Real-time insights with customisable dashboards, offering data-driven decision-making tools.
Cons:
- Subscription pricing may fluctuate and can be on the higher side for smaller businesses.
- Basic support may be limited, with more comprehensive support available at an additional cost.
- Report customisation, while powerful, can be challenging for non-technical users.
SAP
Standing for "Systems, Applications & Products," SAP SE is a German multinational software corporation known for developing enterprise software to manage business operations and customer relations. Established in 1972, SAP has a longstanding reputation in the enterprise IT industry and is one of the largest vendors of ERP and other enterprise applications.
SAP's ERP solutions, known as SAP S/4HANA, SAP BusinessOne and Business ByDesign, are designed to manage business operations across finance, HR, sales, procurement, manufacturing, and service. SAP's solutions are known for their configurability, scalability, and robustness. They are often favoured by large enterprises across various industries, from manufacturing and logistics to healthcare and finance.
SAP ERP solutions are designed to handle complex business processes, making them ideal for large enterprises with diverse operations. The comprehensive suite of applications allows businesses to manage nearly every aspect of their operations from a single platform.
SAP's solutions are built to integrate with various technologies, including advanced analytics, IoT, machine learning, and blockchain, making them a future-proof choice. They also offer cloud, on-premise, and hybrid deployment options, catering to the unique needs of different businesses.
Pros:
- Highly scalable and robust, perfect for large enterprises with complex operations.
- Offers an extensive suite of applications, ensuring a comprehensive coverage of business processes.
- Strong track record and presence in the industry, offering reliability and trustworthiness.
Cons:
- SAP's solutions can be complex, often requiring professional expertise and a longer time frame to set up and manage effectively.
- High implementation cost and time, potentially making it less feasible for small to medium-sized businesses.
- Customisation, while possible, can be challenging and costly, requiring specialist knowledge or consultants.
Microsoft Dynamics 365
Microsoft Dynamics 365 is part of the broader Microsoft ecosystem. Born from the fusion of Microsoft's earlier ERP and CRM products (Dynamics AX and CRM), Dynamics 365 was launched in 2016 as a cloud-first, mobile-first, flexible platform that would better serve the changing needs of modern businesses.
It is a set of intelligent cloud-based business applications that combines CRM and ERP capabilities to manage core business functions across sales, customer service, operations, financials, marketing, and project service automation.
Microsoft Dynamics 365 provides a seamless user experience that connects data, people, and processes. It easily integrates with other Microsoft products, such as Office 365, making it an appealing choice for businesses already using Microsoft tools.
Dynamics 365 also leverages artificial intelligence to provide predictive insights, promote efficiency, and assist with decision-making. It's a good fit for small to large businesses in Malaysia and is scalable to fit the needs of any growing organisation.
Pros:
- Seamless integration with Microsoft products, providing a unified experience and reducing the need for switching between applications.
- AI-driven insights offering data-driven decision-making and predictive analytics.
- Good scalability, enabling businesses to adjust their usage as they grow.
Cons:
- May have higher total costs due to add-ons. While the modular approach allows businesses to pay for what they need, it can add up.
- Requires professional expertise for implementation, which could increase the overall cost.
- Some users report a steep learning curve, especially for those not familiar with Microsoft's ecosystem.
Check out our guide for a further analysis of Microsoft Dynamics 365.
Epicor
Epicor ERP is a comprehensive software suite designed to support various business processes and operations typically found in manufacturing, distribution, retail, and service industry companies, making it a great fit for the Malaysian market. It's affordable pricing makes it ideal for small to medium sizes businesses, and it offers a flexible and scalable solution that can grow with the organisation.
It offers a wide range of features including robust manufacturing support, efficient supply chain management, comprehensive financial management, CRM, detailed project management, and business intelligence and analytics.
Additionally, Epicor provides flexibility and accessibility through mobile and cloud capabilities, allowing businesses to customise their setup, streamline operations, and make informed decisions wherever they are. Its industry-specific tools and scalable platform support businesses in managing their complex processes and growing efficiently.
However, one of the main drawbacks is that it does not provide automatic updates like most ERPs. Updates need to performed by experienced implementation partners, and this can make the total cost of ownership much higher than originally anticipated.
Pros:
- Robust industry-specific solutions.
- Good customer service.
- Offers both on-premise and cloud-based solutions.
- Affordable pricing.
Cons:
- Interface can be clunky and not as user-friendly.
- Upgrades can be complex.
- Can be costly for small businesses.
Infor
Infor is an enterprise software provider and strategic technology partner for over 90,000 organisations worldwide. Founded in 2002, Infor is known for delivering industry-specific ERP solutions, which are designed with the unique needs of specific industries in mind. Their aim is to empower companies to achieve a competitive edge and drive growth.
Infor's ERP solutions include CloudSuite Industrial, CloudSuite Distribution, CloudSuite Fashion, CloudSuite Equipment, and others, each tailored for specific industries. They have a strong presence in sectors such as manufacturing, healthcare, retail, distribution, and hospitality.
Infor’s ERP solutions are comprehensive and designed to meet the needs of businesses of various sizes. These solutions focus on providing industry-specific functionalities, meaning they come with features tailored to the unique needs and challenges of different industries.
The platform’s user-friendly interface enhances usability and minimises the need for extensive training. However, while the core ERP functionality is robust, some businesses might need to purchase additional modules to meet their unique needs.
Pros:
- Strong industry-specific functionalities, enabling businesses to handle unique processes and regulations in their industry.
- User-friendly interface, enhancing usability and reducing the need for extensive training.
- Comprehensive suite of applications, enabling businesses to manage multiple aspects of their operations from a single platform.
Cons:
- Upgrades can be challenging and may require professional assistance, which could increase the total cost of ownership.
- While Infor is continuously working to improve its customer service, some users report that it could be better.
- Depending on the specific needs of a business, it may require additional modules at an extra cost.
Acumatica
Acumatica is a technology firm that specialises in cloud and browser-based business management software. Established in 2008, it aims to deliver adaptable cloud and mobile technology with a unique all-inclusive user licensing model, offering tailored solutions for a broad range of business applications.
Acumatica's cloud-based ERP solutions are designed for small and medium-sized businesses (SMBs), offering strong capabilities across core financials, distribution, manufacturing, project accounting, and CRM. With its scalability, businesses can easily grow with the system, adding users without significant additional costs.
Acumatica ERP is known for its intuitive and user-friendly interface, which can increase productivity and ease the learning curve for new users. The system also offers strong CRM integration, ensuring seamless communication and data flow between departments.
However, Acumatica, while solid for SMBs, might not offer the breadth and depth of advanced features that larger, more complex Malaysian businesses may require.
Pros:
- Good scalability, making it an excellent choice for growing SMBs.
- User-friendly interface, promoting productivity and user adoption.
- Strong CRM integration, enabling a smooth flow of information between sales, marketing, and customer service.
Cons:
- Lacks some advanced features, which could limit its application for large, complex businesses.
- Limited customisation options, which may be restrictive for businesses with specific requirements.
- Some users have reported slow system response times, which could affect productivity.
Sage X3
Sage X3, now known as Sage Business Cloud X3, is a product of Sage Group, a British multinational enterprise software company founded in 1981. Sage offers a wide range of software solutions, with Sage X3 being its flagship ERP product designed for mid-sized to large organisations.
Sage X3 is a flexible, user-friendly ERP solution that provides a variety of features and tools to manage core business processes, including finance, supply chain, and manufacturing operations. With its robust functionality, Sage X3 can be customised to fit the specific needs of a variety of industries.
Sage X3's user-friendly interface enhances usability and minimises the need for extensive training. It offers a comprehensive suite of applications, enabling businesses to manage multiple aspects of their operations from a single platform.
However, Sage X3 may not be the most cost-effective solution for small businesses. While it offers a breadth of functionalities, its cost can be a barrier for smaller organisations. Additionally, while the platform offers customisation capabilities, customising reports can be complex and may require professional assistance.
Pros:
- Robust functionality with good customisation options, catering to a wide range of industry-specific needs.
- User-friendly interface, enhancing usability and reducing the need for extensive training.
- Comprehensive suite of applications, enabling businesses to manage multiple aspects of their operations from a single platform.
Cons:
- Can be expensive for small businesses, making it more suitable for mid-sized to large organisations.
- While Sage is continuously working to improve its customer service, some users suggest it could be better.
- Report customisation, while powerful, can be complex and may require the help of IT professionals or consultants.
Pro Tip: Avoid over-customising your ERP System
When it comes to ERP systems, customisation plays a pivotal role. The ability to tailor the system according to your specific business requirements can significantly enhance operational efficiency and accuracy. Customised workflows, reports, user interfaces, and integrations can make the system more intuitive and user-friendly, thereby increasing productivity.
However, it's vital to strike the right balance between customisation and complexity. While a highly customised ERP system can closely mirror your current processes, it could also introduce challenges down the line. Over-customisation can complicate the system, making it difficult to train new users and impacting the overall user experience. Furthermore, excessive customisation can create hurdles during system updates and upgrades, as these changes might not align seamlessly with your bespoke configurations.
Therefore, a middle-ground approach is generally recommended. Opt for essential customisations that align with your business-critical processes but resist the temptation to customise every element. Leverage standard functionalities where possible, ensuring smoother updates and easier user adoption.
ERP System Implementation Timeline
The process of implementing an ERP system is a complex, significant project that demands considerable time and resources. The implementation timeline can vary greatly based on several factors related to your business and the ERP solution itself.
Factors influencing the timeline include the size and complexity of your business operations, the number of users, the extent of data migration required, and the degree of customisation needed. Additionally, the time needed to train your staff on the new system also contributes to the overall timeline.
For instance, a small business with simpler processes and fewer users might complete the implementation in a few months. In contrast, a large enterprise with intricate workflows, extensive data, and significant customisation requirements might require over a year for a successful ERP implementation.
Keep in mind that ERP implementation is not a race. While it's important to stay on schedule, ensuring the system is correctly set up to serve your business needs effectively is more crucial. Proper planning, testing, and training are all key components of a successful implementation that will serve your organisation well in the long run. For further insights, check out our NetSuite implementation guide, which provides a step by step process that can be applied to any ERP on the market.
Support and Maintenance Post-Implementation
Implementing an ERP system marks the beginning of a transformative journey for your business operations. However, it's important to remember that post-implementation, maintaining the system and ensuring it runs smoothly is equally critical.
Post-implementation support can encompass various services, from resolving technical issues and providing software updates to assisting with system upgrades and expansions. This support is essential to optimise the ERP system's performance, manage any hiccups, and ensure users can utilise the system effectively.
Most ERP vendors offer several tiers of support. Basic support generally forms part of your ERP subscription and typically covers essential services like bug fixes and software updates. However, for more complex needs, such as extensive system customisations or business process re-engineering, you may need to opt for more comprehensive support packages, often available at an additional cost.
Choosing the right support package depends on your specific business needs and internal capabilities. If you have a robust internal IT team, you might need less external support. On the other hand, if your team lacks in-depth ERP expertise, a comprehensive support package could be beneficial. Whichever level of support you choose, ensure it aligns with your business needs and enables you to leverage the full potential of your ERP system.
Best ERP implementation partners in Malaysia
Choosing the right partner is essential to ensuring a successful ERP implementation. Here are a list of the best ERP implementation partners in Malaysia:
- Oracle NetSuite - Threadgold Consulting
- SAP - Axxis Consulting, NTT Data Solutions
- Microsoft Dynamics 365 - EntServ Malaysia
- Epicor - Finsoft Consulting
- Infor - Apex Systems, Fortude
- Acumatica - Netsence
- Sage - CSS Information Consulting
Conclusion
Navigating the complex world of ERP systems can be daunting. However, with the right guidance and information, selecting the right ERP system can be a transformative step towards increased efficiency and business growth.
As a trusted NetSuite Solution Provider, Threadgold Consulting specialises in helping businesses across Malaysia and Singapore evaluate, license, and implement NetSuite Cloud ERP. Our mission is not only to deliver top-notch ERP solutions but also to forge long-lasting relationships and grow in tandem with your business.
To make the decision process even simpler, we invite you to take NetSuite for a 'test drive'. Experience first-hand the power of a comprehensive, cloud-based ERP system with our 14-day free trial. You can explore its features, functionality, and how it could be the solution your business needs, all with no credit card requirements, no obligations, and absolutely no strings attached.
The right ERP solution can be a game-changer for your business, so why not give it a go? Discover the potential of NetSuite today with Threadgold Consulting and step into a future of streamlined operations and unprecedented growth. We're here to guide you on every step of your ERP journey.
