The problem that no one tells about generic ERPs
SAP and Odoo have millions of users in the world. They are mature systems, with modules for everything and ecosystems of local implementers. But in Peru, a growing part of the medium-sized companies that implemented them 5–8 years ago are looking to exit.
The reason is not that the systems are bad. The cost of adapting them to the particularities of each Peruvian business turned out to be much higher than expected, and the rigidity of the predefined processes ended up slowing down the operation instead of improving it.
Why generic ERPs don't work the same for everyone
An ERP like SAP or Odoo is designed to cover industry standard processes. When your company has its own processes—a particular pricing logic, a complex commission model, a specific way of managing inventory by region or season—the ERP does not support them natively.
The generic solution is to customize. But customizing a generic ERP can cost between 3 and 5 times more than licensing, takes additional months and creates total dependency on the implementer. When that implementer disappears or doesn't update the code, the customer is stuck.
- Standard modules that do not fit with business processes.
- Customization cost that exceeds 3x the license cost.
- Reliance on the implementer for any changes, no matter how small.
- ERP updates that break customizations made.
- Complex interfaces that are not adopted by the team without extensive training.
When does a custom ERP make the most sense?
Not every company needs a custom ERP. But there are clear signs that it may be the most efficient decision in the long term.
- Your company has more than 20 active users with different needs in different areas.
- You have processes that are specific to your business model and are not in any generic ERP.
- You have spent more on customizations than on the original license.
- Every ERP update generates an internal compatibility crisis.
- You need direct integration with proprietary systems (machines, sensors, field apps).
Turn this article into a technical decision
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Real costs of migrating from SAP/Odoo to custom software
Migration is neither immediate nor cheap. But for many companies, 5-year analysis shows that the total cost of ownership of custom software is lower than continuing to pay for licenses, customizations, and support for generic systems.
| Concept | Generic ERP (Odoo/SAP) | Custom ERP |
|---|---|---|
| Initial investment | S/ 15,000 – 80,000 | S/ 40,000 – 150,000 |
| Monthly cost | S/ 2,000 – 15,000 (licenses + support) | S/ 500 – 2,000 (maintenance) |
| Customization cost | S/ 20,000 – 100,000 (additional) | Included in initial development |
| Vendor dependency | High | Low (own code) |
| Deployment time | 3–12 months | 4–9 months |
| Total cost over 5 years (reference) | S/ 250,000 – 600,000 | S/ 80,000 – 200,000 |
The migration process that works
Successful migration from generic ERP to custom software is not an overnight replacement. It is a phased process: first the critical business processes are mapped, then the most used modules are built, a parallel migration is done (both systems run in parallel for 1–3 months) and finally the old system is shut down.
At Alaz we have guided this process for distribution, manufacturing and service companies in Peru. The key is not to migrate everything at once and have a contingency plan if something goes wrong.
To compare the costs of build-to-suit vs buy in detail, read our article on custom software vs generic software in Peru
