How Much Does It Cost to Digitise Business Processes?

How much does it cost to digitise business processes? There is no single answer. The investment depends on the processes you want to improve, the tools you already use, the integrations required and the level of customisation involved. Find out what affects the cost and how to estimate it before starting.

How much does it cost to digitise business processes? It is a common question, but there is no single figure that applies to every company. Digitalisation can mean implementing a standard business application, connecting existing systems, automating repetitive tasks or developing custom software.

The final investment depends less on the word “digitalisation” itself and more on what you actually need to change. A company that wants to automate a few administrative tasks will have very different requirements from one that needs to connect its ecommerce platform with an ERP, CRM and internal management system.

Before asking for a quote, it is therefore worth understanding what determines the cost and what type of solution your business really needs.

What determines the cost of digitising a business?

The main factor is the scope of the project. The more processes, systems and exceptions involved, the more analysis, development and testing will normally be required.

Some of the most important factors are:

  • Number of processes: automating one well-defined task is not the same as redesigning several connected processes.
  • Level of customisation: standard software is generally less expensive to implement than a solution designed specifically for the company.
  • Integrations: connecting an ERP, CRM, ecommerce platform, accounting system or other applications adds technical complexity.
  • Data migration: existing information may need to be cleaned, transformed and transferred to a new system.
  • Security and permissions: solutions involving sensitive business information may require more sophisticated access controls and security measures.
  • Future requirements: a solution designed to support future growth may require a different architecture from a short-term automation.

This is why comparing digitalisation projects only by their initial price can be misleading. Two projects may sound similar but have completely different technical requirements.

Digitalisation does not always mean developing software

One of the most common mistakes is assuming that digitalising a process automatically means developing a new application.

Sometimes the best solution is to make better use of software the company already has. In other cases, a standard application may cover most of the requirements and only a small integration or customisation is necessary.

For example, a company may spend a significant amount of time copying information from an ecommerce platform into its management system. The problem may not require a new ecommerce platform or a new ERP. A properly designed integration could eliminate much of the manual work.

On the other hand, if the company's processes are highly specific and existing software cannot accommodate them without excessive workarounds, custom development may make more sense.

Examples of different digitalisation projects

Automating administrative tasks

Imagine a company where employees manually create documents, send recurring emails and update information in several spreadsheets.

The solution could involve workflow automation, document generation and connections between existing applications. There may be little or no need for a completely new software platform.

The cost will depend mainly on how many tasks are involved, how the existing systems work and how much automation is required.

Connecting an ecommerce platform with an ERP

A growing online business may need orders, customers, products and stock information to move automatically between its ecommerce platform and ERP.

This type of project requires analysing how both systems structure information, deciding which system should be the source of truth for each type of data and defining what happens when synchronisation fails.

The complexity therefore depends not simply on connecting two systems, but on how the business actually operates.

Developing a custom internal application

A company may also need a specific internal application because its workflow cannot be handled efficiently with standard software.

For example, a business could need a platform that manages a particular approval process, combines information from several systems and provides different functions depending on the user's role.

In this situation, the project involves analysis, UX and interface design, development, testing, deployment and ongoing maintenance. The investment will naturally be higher than that of a simple automation.

What does the budget include?

The development itself is only one part of the total cost of a digitalisation project.

Depending on the solution, the budget may include:

  • Initial analysis and definition of requirements.
  • Process design and technical architecture.
  • Software development or configuration.
  • Integrations with existing systems.
  • Data migration and preparation.
  • Testing and quality assurance.
  • Infrastructure or hosting.
  • Software licences or third-party services.
  • Staff training.
  • Technical support and maintenance.
  • Future improvements and new features.

This distinction is important when comparing proposals. A lower initial quote may not necessarily represent a lower total cost if important elements are excluded or if the solution becomes difficult to maintain later.

How much can custom software cost?

There is no reliable universal price for custom software. Simple projects can cost several thousand euros, while solutions involving multiple systems, complex workflows and extensive customisation can reach tens of thousands of euros or more.

These figures should only be treated as broad reference points. The actual budget depends on the scope, technical complexity, integrations, number of users, security requirements and expected evolution of the solution.

For this reason, asking for a price before defining what needs to be solved often produces very different estimates from different providers. The more clearly the project is defined, the more useful those estimates become.

How to calculate whether digitalisation is worth the investment

The right question is not only “How much will it cost?” but also “What will the company gain from it?”

A digitalisation project can generate value in several ways:

  • Reducing hours spent on repetitive administrative work.
  • Reducing errors caused by manual data entry.
  • Making information available more quickly.
  • Improving traceability.
  • Reducing delays between departments.
  • Allowing employees to focus on higher-value activities.
  • Improving customer response times.
  • Making growth easier without increasing administrative work at the same rate.

Suppose a process takes several hours every week because employees repeatedly copy the same information between systems. If automation removes most of that work, the value of the project is not limited to the software itself. It also includes the time recovered, the reduction in errors and the increased capacity of the team.

This does not mean every repetitive task should be automated. The process itself should be reviewed first. Automating a poorly designed process can simply make an inefficient workflow run faster.

Which processes should be prioritised?

When the budget is limited, it is usually better to start with the processes where digitalisation can produce a clear operational improvement.

ProcessPotential priorityWhy
Manual data entryHighOften repetitive and prone to errors
Order managementHighDirectly affects operations and customers
Stock synchronisationHighReduces discrepancies between systems
Document generationMediumUsually repetitive and easy to standardise
Internal reportingMediumCan reduce time spent collecting information
Complex decision-makingLowOften requires human judgement and oversight

The exact priority will depend on the company. A process that is critical for one business may be irrelevant for another.

Standard software or custom development?

The choice between standard software and custom development has a major impact on the budget.

Standard software is often the most sensible option when the company's processes are reasonably common and the available functionality covers its requirements.

Custom software becomes more interesting when the business has specific processes, needs deep integrations or finds that adapting its operations to standard software would create too many compromises.

There is also a third option that is often overlooked: a hybrid approach.

A company can use standard software for common functions while developing specific integrations or custom modules for the areas where differentiation or operational efficiency matters most.

This can provide a better balance between investment, flexibility and long-term maintenance.

How to avoid unexpected costs

Many budget problems are caused before development even begins. The requirements are not sufficiently defined, integrations are underestimated or future needs are ignored.

A few practices can reduce this risk:

  1. Map the current process. Understand what happens today before deciding what should be automated.
  2. Identify the systems involved. Know where the relevant information currently lives.
  3. Define priorities. Separate essential requirements from features that can wait.
  4. Consider exceptions. A process may look simple until unusual cases are analysed.
  5. Clarify integrations. Determine which systems need to exchange information and how.
  6. Plan for maintenance. Software is not finished forever when it goes live.
  7. Start with a realistic first phase. A smaller project can provide useful results while reducing initial risk.

A lower price is not always a lower cost

It can be tempting to choose the cheapest proposal, especially when several suppliers offer very different prices.

However, the initial development cost is only one part of the equation. A solution that is difficult to use, poorly integrated or expensive to modify can generate additional costs later.

When comparing proposals, it is worth looking at the complete picture: what is included, how the solution will be maintained, who will provide support, how future changes will be handled and whether the technology is appropriate for the business.

The objective should not be to spend as little as possible. It should be to invest appropriately in solving the right problem.

Can you digitalise a business gradually?

Yes. In many cases, a phased approach is more practical than trying to transform every process at once.

A company might begin by automating one repetitive administrative process. Once the solution is stable, it could connect the relevant systems, improve order management and later develop more advanced internal tools.

This approach makes it easier to learn from each phase, control the investment and demonstrate tangible improvements before moving on to the next stage.

It also avoids a common mistake: launching a large technology project without having validated whether the proposed solution actually fits the way the business works.

What should you prepare before requesting a quote?

You do not need a complete technical specification before contacting a software company. However, having a clear description of the business problem can make the initial assessment much more useful.

It helps to explain:

  • Which process currently creates the most work.
  • Which tasks are performed manually.
  • Which applications are already being used.
  • Where information is duplicated.
  • What errors or delays occur.
  • Who is involved in the process.
  • What result you would like to achieve.
  • Which requirements are essential and which are optional.

With this information, a technology partner can assess whether the best option is configuration, integration, automation or custom development.

So, how much should you budget?

There is no meaningful single figure without knowing what you want to digitalise.

A small automation based on existing tools may require a relatively limited investment. A project involving several integrations and business-critical workflows will require considerably more analysis and development. A fully custom business application can represent a much larger investment again.

The important point is to define the problem before defining the technology. Once the process, objectives, systems and priorities are understood, it becomes much easier to estimate the appropriate investment.

Digitalisation should not be approached as a race to buy new software. The objective is to make the business work better, with less unnecessary manual effort and with information that is easier to manage and use.

How Orizontic can help

At Orizontic, we analyse the processes, systems and requirements of each business before proposing a technology solution. Depending on the situation, the right approach may involve process automation, system integration, standard software or custom software development.

The aim is not to introduce technology for its own sake, but to find a solution that fits the way the company actually works and can evolve as its needs change.

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