Build Software Like SAP ERP: Features, Cost & Guide 2025

Published on January 22nd, 2025

Looking to build software like SAP ERP? You’re in the right place! This blog explores how businesses can enhance productivity, streamline operations, and stay competitive with ERP solutions modeled after SAP’s capabilities.

SAP is a global leader in enterprise resource planning (ERP) software, offering powerful tools to optimize business processes across industries.

SAP ERP integrates critical business functions—like finance, human resources, and supply chain management—into a unified platform. This empowers companies to harness automation, make data-driven decisions, and allocate resources effectively.

Dive into this blog as we uncover the benefits, features, and game-changing impact to build software like SAP ERP on modern business management and growth.

What is SAP ERP Software? 

Image Source: www.sap.com

SAP ERP (Enterprise Resource Planning) is a robust business management solution created by SAP SE, a global leader in enterprise software. It seamlessly integrates various organizational functions into one platform, enabling businesses to streamline processes, boost efficiency, and make smarter, data-backed decisions.

SAP ERP covers a vast array of business needs, including finance and accounting, human resources, procurement, sales and distribution, manufacturing, inventory management, and customer relationship management (CRM). Its unified database allows real-time data sharing across departments, improving collaboration and ensuring consistency throughout the organization.

With features that promote integration and operational excellence, ERP software like SAP transforms how companies operate and fuels growth in dynamic business environments.

How Does SAP ERP Software Work?  

SAP ERP simplifies business operations by integrating various modules and functions into a cohesive system. Here’s how it works:

1. Modules  

SAP ERP is built around modules that specialize in core business functions, such as finance and accounting, sales and distribution, procurement, human resources, and production planning. Each module focuses on a specific area, ensuring comprehensive coverage of an organization’s operations.  

2. Centralized Data Management  

At its core, SAP ERP uses a single, unified database to manage and store business data. This centralized data storage ensures that all modules can share and access information in real time, maintaining accuracy and consistency across the entire organization.  

3. Seamless Integration  

Integration is a key feature of SAP ERP. By linking different modules and business processes, the system enables a seamless flow of information between departments. For example, when a sales order is placed, SAP ERP updates inventory levels, triggers procurement processes, records financial data, and initiates production planning if needed—all in real-time.  

4. Business Processes Optimization  

SAP ERP supports all aspects of business operations, allowing organizations to streamline their processes based on unique requirements. It manages activities such as sales order processing, procurement workflows, manufacturing scheduling, financial accounting, and HR management—all tailored to organizational needs.  

5. Flexible Customization  

One of SAP ERP’s strengths lies in its flexibility. Businesses can customize the software by adjusting settings, defining workflows, and configuring specific business rules to create solutions that align with their exact processes and needs.  

6. The Growing Market for ERP Software  

The global ERP software market, valued increasingly for its efficiency and adaptability, is projected to reach $101 billion by 2026, highlighting the growing demand for systems like SAP ERP.  

Leverage SAP ERP to build software that integrates operations, streamlines workflows, and drives efficiency within your organization.

Must Check: SAP ECC and SAP ERP S/4 HANA

The SAP ERP Software backstory:

• SAP (Systems, Applications, and Products) was founded in Mannheim, Germany, in 1972 by five former IBM employees—Hasso Plattner, Klaus Tschira, Dietmar Hopp, Hans-Werner Hector, and Claus Wellenreuther. Originally, SAP’s goal was to enable real-time interaction with corporate databases, revolutionizing how businesses managed their information systems.
• In 1973, SAP released its first product, R/1, a financial accounting system designed to run on IBM servers. R/1 used a one-tier architecture, where all data, applications, and presentation layers were housed on the same platform. This was followed by R/2 in 1979, which introduced real-time data processing across multiple business functions such as accounting, manufacturing, supply chain, and human resources. R/2 marked SAP’s first significant foray into the corporate world and laid the foundation for its growth, reaching about 200 customers.
• The major turning point for SAP came in 1992 with the launch of R/3, which transitioned the company from mainframe computing to a client-server architecture. R/3 was a 3-tier architecture system, where the presentation, application, and data layers were separated, significantly enhancing performance and scalability. This innovation helped SAP expand globally and gain a competitive edge.
• In 2004, SAP introduced SAP NetWeaver, the first web-based platform for cross-application development. Alongside this, the company released SAP ECC (ERP Central Component), the successor to R/3. In 2009, SAP Business Suite 7 became available, further integrating service-oriented architecture into its solutions.
• One of the most groundbreaking developments came in 2011 with the launch of SAP HANA, an in-memory computing platform. HANA aimed to replace traditional databases with real-time data processing, making business applications faster and more efficient. SAP has continued to evolve its strategy, acquiring more than 60 companies since 1996, and focusing on cloud computing and mobility to meet modern business needs.

SAP ERP: Why is it so Popular?

SAP ERP (Enterprise Resource Planning) stands out as a preferred choice for businesses due to several key factors:

1. Comprehensive Functionality

SAP ERP provides a wide array of integrated modules, covering processes like finance, human resources, inventory, sales, procurement, and production. This holistic functionality helps streamline operations across departments, boosting efficiency and productivity.

2. Scalability

Designed for businesses of all sizes, SAP ERP is highly scalable. It evolves alongside organizational growth and adapts to changing business needs, making it a future-proof solution.

3. Industry-Specific Solutions

SAP ERP includes tailored solutions for industries such as manufacturing, retail, healthcare, and utilities. These features address unique challenges and ensure compliance with industry-specific regulations and standards.

4. Integration Capabilities

SAP ERP excels in seamless integration with other systems and applications. This capability eliminates information silos, enhances data flow, and provides a unified view of operations, empowering businesses to make informed decisions.

5. Global Presence and Support

With a strong global footprint, SAP is trusted across industries and countries. Its extensive ecosystem of consultants, developers, and support services ensures organizations have access to skilled professionals for implementation and maintenance.

If you’re planning to build software like SAP ERP, these features highlight the importance of scalability, integration, and industry customization to meet diverse business needs!

Suggested: Odoo ERP vs. Alternative ERP Systems

Top 10 Alternatives to SAP ERP Software

There are several robust alternatives to SAP ERP software that cater to different business needs, providing tailored solutions for various industries. Below are some of the most popular ERP systems that you should consider:

1. Oracle ERP Cloud

• Founded: 1977
• Founded By: Larry Ellison, Bob Miner, and Ed Oates
• Description: Oracle ERP Cloud offers a comprehensive suite of cloud-based ERP solutions covering finance, procurement, supply chain management, and human resource management.

2. Microsoft Dynamics 365

• Founded: 1975
• Founded By: Bill Gates and Paul Allen
• Description: Microsoft Dynamics 365 integrates modules for operations, sales, marketing, customer care, and finance, with options for both on-premises and cloud deployment.

3. Infor ERP

• Founded: 2002
• Founded By: Charles Phillips
• Description: Infor ERP provides industry-specific solutions for manufacturing, distribution, healthcare, and hospitality, with a focus on user-friendly interfaces and flexibility.

4. NetSuite ERP

• Founded: 1998
• Founded By: Evan Goldberg
• Description: NetSuite is a cloud-based ERP system offering modules for financial management, inventory, order management, CRM, and e-commerce, ideal for small to midsize businesses.

5. Sage ERP

• Founded: 1981
• Founded By: David Goldman and Graham Wylie
• Description: Sage provides ERP solutions for different-sized organizations, covering finance, supply chain management, manufacturing, and CRM, with Sage X3 being particularly popular for mid to large enterprises.

6. Workday ERP

• Founded: 2005
• Founded By: David Duffield and Aneel Bhusri
• Description: Workday offers cloud-based ERP solutions focused on human capital management, financial management, and payroll, primarily used by medium to large organizations.

7. Epicor ERP

• Founded: 1972
• Founded By: George C. Forsythe
• Description: Epicor ERP offers solutions for industries like manufacturing, retail, and distribution, providing enterprise-wide capabilities with strong customization options.

8. SAP Business One

• Founded: 1972
• Founded By: Hasso Plattner, Klaus Tschira, Dietmar Hopp, Hans-Werner Hector, and Claus Wellenreuther
• Description: SAP Business One is SAP’s solution for small and medium-sized businesses, integrating core business functions like finance, CRM, inventory, and operations.

9. Kepion

• Founded: 2009
• Founded By: Todd Craighead
• Description: Kepion offers cloud-based enterprise performance management solutions that integrate planning, forecasting, and analytics.

10. Kronos Workforce Central

• Founded: 1977
• Founded By: Aron Ain
• Description: Kronos Workforce Central provides workforce management solutions that handle HR, payroll, scheduling, and timekeeping.

Also Check: 10 Best Types of Custom Software for Businesses

Advantages of SAP ERP Software

SAP ERP (Enterprise Resource Planning) software supports businesses across various sectors, streamlining processes and enhancing performance. Here are the key benefits of SAP ERP:

• Integration and Centralization 

SAP ERP integrates multiple business operations—finance, HR, supply chain management, sales, and production—into a single platform. This unified system improves coordination, enhances collaboration between departments, and ensures accurate, consistent data.

• Improved Efficiency and Productivity 

By automating manual tasks and reducing paperwork, SAP ERP optimizes workflows, eliminates redundancies, and minimizes errors. This automation boosts efficiency and increases productivity across the organization.

• Enhanced Decision-Making 

With real-time access to accurate company-wide data, SAP ERP empowers managers to make informed, timely decisions. Its advanced reporting and analytics tools provide valuable insights, supporting data-driven decision-making.

• Supply Chain Optimization 

SAP ERP enhances supply chain management by optimizing procurement, inventory, and production processes. It improves demand forecasting, inventory control, and supplier coordination, minimizing stockouts and creating a more efficient, responsive supply chain.

• Financial Management 

SAP ERP offers a range of financial management features, including general ledger, accounts payable/receivable, budgeting, and reporting. It enables effective financial operations, cash flow monitoring, and regulatory compliance, delivering accurate financial insights.

The benefits of SAP ERP demonstrate its value in optimizing business operations, improving decision-making, and driving success. Consider building software like SAP ERP to meet your organization’s unique needs.

Also Read: Step By Step Guide To Build An ERP System

Key Features of SAP ERP Software 

If you’re planning to build software like SAP ERP, understanding its core features is essential. Here’s an overview of the key functionalities that make SAP ERP a leader in enterprise solutions.

1. Plan-to-Product 

This feature equips users with comprehensive product data and detailed analytics to develop effective product strategies. It allows businesses to compare spending against budgets to avoid overruns. By enhancing production cycle predictability, it helps reduce work in progress while delivering real-time insights for faster decision-making.

2. Order-to-Cash 

The order-to-cash functionality provides real-time data on pricing, contracts, customers, and products. It streamlines customer receivable account management by automating data recording, minimizing manual errors, and freeing up employees to focus on higher-priority tasks.

Cloud-based ERP systems are on the rise, with a projected market share of 53% by 2026. 

3. Request-to-Service 

Users gain access to critical information about customer assets, systems, and equipment. Past service performances and contractual agreements can be reviewed to maintain quality and consistency. This function integrates with billing, operations, and other business systems to evaluate profitability comprehensively.

4. Procure-to-Pay 

This feature centralizes all HR-related data and ensures compliance with global regulations. It manages payroll, benefits, employee scheduling, time tracking, and absence management seamlessly. With compliance tools covering over 58 countries, HR operations become faster and more accurate.

5. Financial Management 

The system automates core accounting capabilities such as accounts payable and receivable to improve efficiency. It also helps manage costs, analyze profitability, and allocate project expenses. Compliant with tax laws and manufacturing regulations across more than 40 countries, it offers unmatched financial management capabilities.

Understanding these core features can be a game-changer if you’re developing a cloud-based ERP solution or planning to build software like SAP ERP.

Also Read: How to Build An ERP Software From Scratch

Challenges of Building Software Like SAP ERP 

1. High Costs: 

Developing and implementing software like SAP ERP demands a significant financial investment. Beyond the initial software costs, businesses must allocate resources for customization, training, and IT infrastructure. This makes the total cost of ownership particularly challenging for small and mid-sized companies.

2. Complex Implementation: 

Creating and maintaining enterprise-grade software like SAP ERP requires highly skilled professionals. The need to hire or train specialized IT staff or consultants adds to the overall cost and complexity, making it a demanding endeavor.

3. Lengthy Deployment Timelines: 

Building or implementing software similar to SAP ERP is a time-intensive process. It involves extensive planning, customization, data migration, staff training, and rigorous testing. Depending on organizational size and complexity, deployment may take months or even years, often causing temporary workflow disruptions.

4. Customization Hurdles: 

While customization is key to aligning ERP software with specific business needs, it comes with challenges. Customizing such software can be complicated and time-consuming. Furthermore, updates or system upgrades can introduce compatibility issues, adding another layer of complexity.

5. User Experience Issues: 

The user interface of ERP platforms like SAP has often been criticized for its lack of intuitiveness. A challenging interface can result in lower productivity and user satisfaction. Although strides have been made to improve usability, delivering a seamless experience remains a challenge.

6. Vendor Dependency: 

Organizations adopting systems inspired by SAP ERP may face significant vendor dependency. When the provider is the sole source for updates, support, and bug fixes, it can limit flexibility. This vendor lock-in can also make switching to alternative systems difficult in the future.

While software like SAP ERP offers extensive functionalities, addressing these challenges is critical for delivering a more efficient and cost-effective solution.

Suggested: Harnessing ERP AI Chatbots for Business Organizations

How Much Does It Cost to Build Software Like SAP ERP?

The cost to build software like SAP ERP can range from $25,000 to $100,000 for small to medium-sized businesses and can go upto $100,000 to $500,000 for larger enterprises. Further cost can vary significantly based on several factors, including the project scale, complexity, customization needs, and deployment strategy.

 Below is a breakdown of the key components that influence the cost:

Key Components of the Cost to Build Software Like SAP ERP:

Factors Affecting the Cost of Building SAP ERP Software:

• Scale and Complexity: The larger the organization and the more complex the business processes, the more expensive the development and implementation.
• Customization Needs: The extent to which customization is required, whether it’s modifying existing modules or developing new features, significantly impacts cost.
• Deployment Strategy: On-premises ERP deployments are generally more costly upfront compared to cloud-based deployments, which may have ongoing subscription fees.
• Consultation and Implementation Partners: The expertise and reputation of the implementation consultants or partners you hire will influence costs.
• Training: Comprehensive user training for employees on how to use the ERP system adds to the cost.

Typical Estimated Cost Range:

• For small to medium-sized businesses, the cost can range from $25,000 to $100,000.
• For larger enterprises with more complex needs and significant customization, the cost may range from $100,000 to $500,000.

It is highly advisable to consult with an experienced ERP development company to get an accurate estimate tailored to your organization’s specific requirements and objectives.

Takeaway

Developing software like SAP ERP requires careful planning, a clear understanding of business needs, and a well-defined strategy. From selecting the right development team to considering customization, integration, and ongoing maintenance, every aspect plays a crucial role in ensuring the success of the ERP software.

By exploring various alternatives and understanding the costs involved, businesses can make informed decisions to build software like SAP ERP and can understand which solution best suits their operations. Whether you aim to enhance your existing system or build something entirely new, the journey of ERP development demands thorough research, strategic execution, and continuous improvement to meet evolving business demands.