Choosing the wrong ERP approach is one of the most expensive mistakes SME founders make. Industry data consistently shows that nearly 70% of ERP initiatives fail or underperform - not because ERP isn’t necessary, but because businesses commit to the wrong way of implementing it.
In 2025, SME founders have three clear ERP paths to choose from:
- Build – develop a fully custom ERP using traditional coding
- Buy – adopt an off-the-shelf ERP product
- Configure – get a fully custom ERP built using an AI-powered no-code platform like Creviz
This guide helps founders evaluate these options using a practical decision framework - based on cost, time-to-value, risk, scalability, and ROI over the next 3–5 years.
Key Takeaways
What are the three ERP paths for SMEs?
Build (custom-coded), Buy (off-the-shelf), and Configure (custom-built using no-code). Each suits very different business realities.
Why do most ERP projects fail?
Poor planning, unrealistic expectations, insufficient user adoption, lack of executive ownership, and - most critically - choosing an ERP approach that doesn’t match how the business actually operates.
Which ERP path is fastest to deploy?
Buy: 2–6 weeks | Configure (Creviz): 4–8 weeks | Build: 6–12 months.
Speed alone doesn’t matter if the system doesn’t fit your workflows.
What’s the real 3-year cost difference?
Build: ₹35–60L+ | Buy: ₹25–45L (subscriptions escalate) | Configure: ₹15–28L - with the best cost-to-customisation ratio.
Which path works best for most SMEs?
Configure - when you need custom workflows, fast rollout, and no dependency on a dev team.
Defining the Three ERP Paths for SMEs
Before comparing costs or timelines, it’s important to understand what each ERP approach actually looks like in real SME environments.
Build ERP: Full Custom Development
Building an ERP means creating a system entirely from scratch using traditional software development.
This approach involves hiring a development agency or internal engineering team to design, code, test, deploy, and maintain the ERP.
What this approach offers
- Complete control over workflows and features
- Ability to support highly unique or proprietary processes
- Full ownership of the source code and roadmap
The practical reality for SMEs
- Timeline: 6–12 months (often longer)
- Cost: ₹20–50 Lakhs+ for a production-ready system
- Ongoing responsibility: Maintenance, security updates, bug fixes, and developer dependency
While this route provides maximum control, it also carries the highest delivery and financial risk, making it suitable only when ERP itself is a strategic asset.
Buy ERP: Off-the-Shelf Software
Buying ERP involves adopting pre-built software with standard modules for finance, inventory, sales, and operations.
These systems are designed for quick deployment and are typically offered on a subscription basis.
Why SMEs choose this route
- Faster go-live, often within weeks
- Lower upfront investment
- Vendor-managed infrastructure, updates, and compliance
Where challenges emerge
- Customization is limited or expensive
- Businesses adapt their processes to the software
- Subscription and user-based costs grow over time
For many SMEs, off-the-shelf ERP delivers speed, but results in process compromises that become permanent as the business scales.
Configure ERP: Custom-Built Using No-Code Platforms
Configure ERP refers to systems that are fully custom-built on modern no-code platforms, rather than coded line by line.
In this model, the ERP is tailored to your workflows - but delivered without traditional development complexity.
How Creviz fits into this approach
Creviz designs and builds fully custom ERP and internal business software for SMEs using its proprietary AI-powered no-code platform.
It is not a DIY tool or pre-packaged ERP - it is a custom solution built for your business, faster and with lower risk.
How this works in practice
- Your real processes are documented and mapped
- AI-assisted tools convert workflows into functional modules
- The system is assembled visually and tested iteratively
This approach delivers the flexibility of custom software with the speed and predictability SMEs need.
Comprehensive Comparison Framework
How Do the Three ERP Paths Compare?
The key difference lies not in features, but in how easily the ERP evolves as the business changes.
ROI Timeline Comparison
How Long Does Each ERP Path Take to Pay Back?
- Build ERP:
ROI typically takes 18–36 months, delayed by long development cycles and higher upfront costs.
- Buy ERP:
ROI is often achieved in 12–24 months, but value tends to plateau once customization limits are reached.
- Configure ERP (Creviz):
ROI is commonly realized in 9–18 months, with continuous gains as workflows are refined post-launch.
For most SMEs, earlier impact and lower risk matter more than theoretical long-term ownership.
When does each path win for SMEs?
Choose Build if you meet ALL these criteria
Your situation:
- Truly unique processes: Patented workflows or trade-secret methodologies that define competitive advantage
- Large existing IT team: 5+ developers already on payroll who can dedicate 50%+ time
- Long-term ownership priority: Willing to invest heavily upfront for complete control over future
- Stable requirements: Business processes won't change significantly during 12-month build
- Substantial budget: ₹40L+ available for technology investment this fiscal year
Examples where Build makes sense:
- SaaS start-up building proprietary vertical ERP for their own industry (product itself)
- Large manufacturer with R&D processes too sensitive to put on any external platform
- Company with existing dev team that can absorb ERP maintenance as ongoing responsibility
Avoid Build if:
- Tight budgets or timelines (SME reality for most)
- No in-house technical team to maintain post-launch
- Business processes still evolving as company scales
- Board expects ROI within 18 months
Reality check:
55-75% of ERP projects fail to meet objectives, with custom builds showing highest failure rates due to scope creep and timeline slippage. Unless you match all criteria above, Build introduces unacceptable risk.
Choose Buy if these apply to your business
Your situation:
- Standardized operations: Workflows match common industry practices with minimal variation
- Urgent go-live timeline: Need operational system in under 8 weeks
- Minimal customization needs: Willing to adapt some processes to match software capabilities
- Prefer vendor support: Want vendor handling updates, security, infrastructure maintenance
- Limited technical resources: No in-house IT team and don't want to build one
Examples where Buy makes sense:
- Professional services firm with standard project tracking and billing needs
- Retail business following typical POS → inventory → accounting workflows
- Small organization (under 15 people) with straightforward operations
- Business needing immediate digitization to replace complete Excel chaos
Watch for these Buy pitfalls:
- Escalating fees: Subscriptions typically increase 10-15% annually, plus forced tier upgrades
- Customization walls: Request falls outside vendor scope—either wait for roadmap or rebuild elsewhere
- Forced upgrades: Vendor deprecates features or changes pricing—you adapt or migrate
- Integration limits: Your specific tools (payment gateway, shipping, CRM) may not connect
When to reconsider Buy:
- If implementation consultant says "you'll need to change your process to match the system" more than twice
- If critical workflow isn't supported and vendor has no timeline for it
- If you're regularly hitting user limits, transaction caps, or storage restrictions
Choose Configure (Creviz) if this describes you
Your situation:
- Unique SME workflows: Processes differentiate you but not requiring 100% custom code
- No dev team available: Business users need ability to make changes without developers
- Growth-focused: Scaling rapidly and need system that evolves at same pace
- Moderate budget: ₹5-15L implementation investment acceptable for right solution
- Need fast custom ERP: Want tailored system in 4-8 weeks, not 12 months
Prime candidates for Configure:
- Manufacturing SME with unique production scheduling but standard accounting
- Trading business with complex multi-warehouse inventory logic
- Service company with custom client onboarding workflows
- Growing businesses (20-100 employees) outgrowing Excel but not ready for enterprise ERP
- Companies needing GST compliance with India-specific workflows built-in
Configure advantage scenarios:
- Hybrid needs: Standard finance module but custom operations workflows
- Iterative approach: Start with 2 modules, add more as processes stabilize
- Integration-heavy: Need connections to Tally, Razorpay, Zoho, WhatsApp, e-commerce
- Compliance-critical: Must maintain audit trails, GST e-invoicing, DPDP Act requirements
Hybrid ERP Approaches and the Creviz Sweet Spot
Starting Small and Scaling Strategically
Many SMEs adopt a hybrid approach:
- Launch core modules like inventory, finance, or sales
- Add departments and workflows as the business grows
- Refine processes post-launch without restarting ERP projects
Creviz supports:
- Modular expansion
- Data portability
- Flexible hosting and deployment options
This avoids costly ERP re-implementation cycles.
Why Creviz Works for SME Founders
- Fully custom ERP built on Creviz’s AI-powered no-code platform
- Faster delivery without traditional development risk
- GST-compliant workflows and audit-ready structures
- Enhancements without new development projects
Example:
A trading SME went live with inventory and billing in 5 weeks, then expanded to approvals and finance workflows within 3 months, without rebuilding the system.
A 5-Step ERP Decision Framework for Founders
1. Map Your Processes
Document current workflows - even if they live in Excel or WhatsApp.
2. Score Your Needs
Rate customization depth, timeline urgency, and budget flexibility.
3. Calculate 3-Year TCO
Include licenses, customization, support, and opportunity cost.
4. Validate with a Prototype
Test real workflows through a Creviz-led proof-of-concept.
5. Evaluate the Vendor
Review support quality, exit options, and customer references.
Conclusion: Making the Right ERP Decision in 2025
For most SMEs, configuring a fully custom ERP through an AI-powered no-code platform like Creviz offers the best balance:
- Faster than traditional builds
- More flexible than off-the-shelf software
- Lower risk and lower long-term cost
ERP success in 2025 isn’t about choosing software—it’s about choosing the right delivery model.