How Long Does ERP Implementation Take and What Does It Cost?

Introduction

Implementing an ERP system can transform business operations—streamlining processes, improving visibility, and boosting productivity. But success hinges on careful planning. In this article, we analyze the main factors that affect both the cost and duration of ERP implementations. We also present a practical example to help you set realistic expectations.

Key Factors Affecting ERP Implementation

1. Company Size and Internal Complexity

The size of the business and how complex its internal processes are significantly affect how long and how expensive the ERP rollout will be:

More data to migrate from existing systems, increasing workload
Greater risk of disruption or downtime affecting operations
Multiple units or departments requiring integration and alignment
More need for customization, due to more elaborate processes

As company scale and process complexity increase, so do risks and resource needs.

2. Project Scope — How Many Modules / Features?

What you decide to include in your ERP goes a long way toward determining cost and time:

The more functional areas (finance, inventory, CRM, HR, production, etc.) included, the more work is needed
Broad coverage demands more integration, more workflows to configure, more user training
Simpler, limited-scope implementations can be faster and cheaper
Extensive customizations or cross-module dependencies add to complexity

Carefully defining and limiting the core scope in early phases helps control risk and schedule.

3. Data Migration — Preparing & Cleaning Legacy Data

Data migration is often underestimated yet critically important. Key activities include:

Backing up existing data from legacy or siloed systems
Cleaning, normalizing, deduplicating, and mapping data to new structure
Testing and validating the migrated data to ensure accuracy

Poor, inconsistent, or disorganized legacy data can introduce serious delays. Thorough preparation and validation minimize risks.

Example: Cost & Time Estimate

Consider a trading company with:

Annual revenue of 2 million €
Needs for core modules: sales, inventory, finance, accounting
About 10 out of 30 employees actively using the system
No heavy customization, but data migration is nontrivial due to scattered sources

Estimated implementation figures:

Cost: ~ 50,000–60,000 €
Duration: ~ 5 months

This example illustrates how even modest companies can face non-negligible cost and time demands when ERP implementation is done properly.

Conclusion & Tips for Success

To improve your chances of a successful ERP rollout:

Choose an experienced implementation partner who knows potential pitfalls
Allocate adequate time for preparation, especially for data and requirements gathering
Start with a realistic scope and expand in later phases
Focus on change management: training, user engagement, support
Monitor progress and adapt early if risks or delays appear

With the right planning and an informed partner, you can steer the process more predictably and avoid many common traps.