ERP software developers can help companies prevent any sort of mistakes leading to financial, time and other losses by taking care of the entire chain of business processes. Imagine: you make a really big deal with a customer. But the next day it was found out that the company is out of inventory to finalize it. Neither you nor the client is satisfied. Unpleasant situations like this can be prevented with a well-tailored software solution. It’s no surprise that many companies resort to custom ERP development in order to prevent such cases.
ERP software solutions allow you to polish business processes and stop losing money. In this article, we’ll tell you more about customized ERP solutions as well as give a piece of advice on how to effectively plan the ERP software development process.
What Is ERP Software?
ERP is an acronym that stands for enterprise resource planning. In a nutshell, this is a process of managing all important components of business like planning, inventory, marketing, sales, human resources, etc. Correspondingly, ERP software solutions are designed to facilitate interaction between core business processes.
Almost any modern organization use customized ERP software in one or other form. As a rule, these solutions are modular and store an essential business information in a central database.
Probably the main benefit of having custom ERP software is that it can link together a variety of processes delivering better efficiency to the entire company. For example, it’s possible to track the full revenue cycle starting from invoices ending with cash recipients. The big deal is all the data don’t have to be synchronized between several systems if you build your own ERP system.
ERP software solutions are made to analyze and manage data. This makes them a perfect choice for improving the company’s planning processes. The reporting can be adjusted in a way allowing employees to look through the job data and schedule history by departments. In turn, such functionality gives chiefs of departments an opportunity to manage resources more carefully and meet deadlines.
The majority of companies have their own well-tested inventory management process. However, who said they cannot be optimized even better?
In fact, custom ERP development makes inventory management much more flexible and allows keeping the stable inventory level (nor high neither low).
It’s an important process for most businesses. Reporting can be time-consuming for companies that don’t use any web-based ERP system. For instance, some of them even allocate extra time throughout the day in order employees could have enough time to cope with their daily reports.
A Custom ERP system can reduce the total time an employee spends on reports. For instance, with the help of customizable filters that give an opportunity to create reports containing only relevant data.
Without custom ERP system development, your company will have to utilize four or more different software solutions to cover the needs of a specific business area. Imagine what productivity you can reach by combining them all together and allowing them to interact.
Talking about interfaces, remember that you should take care of UI/UX design to create ERP software of high quality. ERP systems are data-driven and that fact makes them hard to use without well-thought-out design.
How to Design an ERP System for Your Company
ERP system development seems to be the right investment for many companies. Out-of-the-box software cannot provide the functionality to effectively manage every company in the world. That’s why the development of a custom Enterprise Resource Planning system can save a lot of money in the long-term.
It’s the same as if you rented an apartment and couldn’t replace its furniture or paint the walls because the rental contract forbids doing so. At the same time, custom ERP development is like building a house from scratch where you can personalize everything you want as well as add everything you need.
So, let’s find out how to approach the ERP system development process step-by-step.
1. Get the Vision
How to make ERP software? There are two ways to get this work done — hire outsource web developers working in ERP software development company or hire in-house specialists.
After that, you should tell the team working on this project about your vision on this product. It can be a certain feature your company needs or problems you want to solve with the help of this software.
A quality custom ERP system should be able to at least manage data flows of different activities (e.g. sales, planning) as well as automate routine processes. Some enterprises have specific requirements, while the majority want to include such business activities as:
- Distribution or delivery
- Tight integration with CMS
Each company must decide what they need to integrate into their ERP system and then move forward to the next step. This is the first thing you should consider even before the ERP development process.
2. Prepare the Blueprint
Now you have an estimated vision of your custom ERP solution. In order to understand how to create an ERP system for the business, you should brainstorm with the colleagues and specify your vision filling it with essential details.
It’s barely possible to develop a well-thought-out ERP business software without involving chiefs of the departments the system will be used in.
So, conduct a meeting with department leaders, find out their pains, think over the ERP features list, and write down everything you come up with. This will help you describe your expectations and end results of building the ERP system to your in-house developers or software development company you cooperate with.
3. Make Informed Decisions
ERP developers have to joint all the enterprise’s data from various departments into a single database with hierarchical architecture. This will provide accurate and timely spreading of data among the company’s employees and departments.
To do so, ERP system developers deal with components of the tiered architecture, connections between database tables as well as triggering and linking which make these tables and components dynamic.
All these largely depends on the scenario your developers are faced:
- It was decided to use a ready-made service with canned database structure and adapt it to the business needs.
- It was decided to build ERP from scratch and use existing modules (if any) as well as create new ones.
In a nutshell, they need to redesign and tailor business processes in order to custom the ERP system that could correctly track and manage them. So if you choose a third-party service, developers will have to operate with the existing database structure what makes the embedding of procedures much harder or even impossible in some cases.
In case they’re creating the environment from scratch, the team will be building lots of components and containers on their own in order to transport data between different tiers.
These aren’t the only peculiarities and there are actually a lot of other technical pitfalls, so you better consult with your IT lead or refer to reliable IT service providers.
4. Decide Where to Host It
There are two scenarios as well: host your ERP software solution in-house or on the cloud. Which one to choose depends a lot on the company’s policy and financial opportunities. It’s worth noting that most entrepreneurs pick the second variant because:
- In-house storing requires considerable investments in hardware and staff for maintaining it.
- Cloud-based hosting can be easily scaled if the additional computing power is needed.
- Cloud providers guarantee an advanced level of security.
ERP Software Development Cost
The ERP implementation cost may vary between $25,000 and $350,000. In some cases, it may take even more budget to build a custom ERP system. Everything depends on its complexity and your requirements.
If you have a team of in-house developers, it won’t be hard to calculate the ERP software development cost.
Talking about offshore software development, the prices depend on a region where the company is situated. In Eastern Europe, the average development price is $50/h, while in the US this number reaches up to $250/h.
To learn the cost of developing an ERP system, you can simply multiply an hourly rate of software development company by the number of hours they’ll need to implement your requirements. If you want to learn the number of hours for building an ERP, you should ask your in-house or offshore team to send you the estimation.
The costs of custom ERP development may start at $25,000 and exceed $150,000. So, it’s better to contact the IT service provider to specify details and request more precise numbers.