TCO Worked Examples and Selection Checklists

Three- and five-year total cost of ownership sums, payback on efficiency savings, quote comparison and the checklists that keep an ERP selection on track.

The cheapest subscription is often not the cheapest system. What matters is the total cost of ownership (TCO) over the three to five years you will run the software: subscriptions or licences, implementation, migration, training, integrations, support, internal staff time and the cost of switching out at the end. These guides do that arithmetic step by step for typical Indian MSMEs.

Start with the 3–5-year ERP TCO guide, which links to every guide in this section. You will find worked examples for a small manufacturer and for a distributor or services firm, a payback method for efficiency savings, a requirements checklist, a way to normalise vendor quotes, realistic implementation timelines and what a payroll module must handle for EPF, ESI and professional tax.

Plug your own numbers into the ERP TCO estimator, the ERP payback calculator and the ERP selection checklist. Every figure in the examples is illustrative and should be replaced with written quotes from vendors and partners.

TCO Worked Examples and Selection Checklists

Guides in this topic