Last updated on August 29th, 2024
As businesses worldwide grow, so does the need for ERP (Enterprise Resource Planning) systems. A recent market report says that the global ERP market will grow from $43.72 billion in 2020 to $117.09 billion in 2030. The high growth rate shows that there are more and more opportunities in this field. It also explains why building ERP systems have become so popular recently.
You can take advantage of this growth potential by building ERP from scratch. But before doing that, you need to know how to make your own ERP and what to look for in an ERP system. If you want to know how to make an ERP from scratch or how to make an ERP or ERP database model, keep reading. This blog will show you how to make your own ERP system, what to look for in an build an ERP system, and more.
What is Enterprise Resource Planning (ERP) software?
Enterprise resource planning (ERP) is a type of business software that lets a company use a suite of applications that work together.
They use all the documents to automate and streamline business processes. It can make a process perfect, efficient, and easy to follow.
ERP is one of the best ways to keep all business solutions organised. To meet the needs of your business, it’s best to build your own ERP software to make your work system more efficient. The ERP system automates business tasks in the back office and moves and stores sensitive data.
So, it helps you make better strategic plans for making decisions. Custom ERP software makes all business processes completely clear.
These applications improve all systems by keeping track of resources and making information systems better as a whole. This tool can be used in accounting, finance, supply chain, sales, buying, human resources, marketing, and other areas.
You can think of enterprise resource planning as the brain of the technology system in your company. A company can only run well with an ERP system.
You can improve visibility, operational efficiency, cost savings, productivity, and overall growth by getting everything in your business to work together.
What are the advantages of a business solution that uses ERP?
ERP software is popular with businesses today because it helps them make data-based decisions. But a sound ERP system can do a lot more than just that. Here is a list of what a custom ERP implementation can do for your business:
1. More integration, collaboration, and interaction
Collaboration is much easier when all departments are involved and the state of each department is evident. Often, people do things a certain way just because that’s how they’ve always done them, not because it’s the best way to do it. ERP systems make business processes transparent and easy to understand. They also let managers find the best way to get things done and cut out steps that aren’t necessary.
2. Information about business is always on hand
Also, if the cloud-based ERP software is used, it can be used on any device. This benefit is tied to ERP systems making it easier for businesses to connect, communicate, and work together. Real-time reporting lets you see how business is going and compare how different departments are doing to see which ones need more attention or organisation.
3. Reporting by hand is no longer needed
Data from all modules is collected and turned into charts and graphs that show the status and performance of the business accurately. So, you can leave spreadsheets behind. Also, having clear reports lets you make better plans.
4. Automation of business processes
Routine and repeatable tasks, like payroll and billing, can be automated to cut down on mistakes and save employees time so they can work on more creative tasks.
5. Cutting operational costs
ERP software clarifies so-called bottlenecks, so the team can act quickly and change their strategy. Also, since there is much less paperwork and many routine tasks are done automatically, administrative costs may go down.
6. Data security
Data has become the new gold for businesses in many fields, and keeping it safe is a company’s top priority. Not only because leaking data can hurt a company’s status but also because data can give helpful information and make it easier to make decisions.
ERP systems help keep this valuable asset safe. How? ERP systems usually keep data in one place instead of putting it on many different designs and devices and giving different levels of access to other employees.
What ERP Software Needs to Have
1. Human Resource Module
The HR group uses the Human Resource module to manage HR well. The HR module helps with managing representative data and keeping track of worker records like assignments, execution surveys, sets of responsibilities, ability framework, time, and participation following.
The Payroll System is an integral part of the HR module. It helps you keep track of pay rates, instalment reports, and other things. It can also include things like Travel Expenses and Reimbursement. ERP can also be used to keep track of worker training.
2. Module for Inventory
Inventory modules can be used to keep track of how much something weighs. Things can be told apart by their unique serial numbers. Using those impressive numbers, the stock system can keep track of things and see where they are in the business.
The inventory module has features like stock control, ace units, details about how the stock is used, and so on. ERP’s stock module and buying module might work together.
3. Sales Module
Average sales measures include:
- Looking at sales questions and requests and taking care of them.
- Writing up quotes.
- Accepting sales orders.
- Writing up sales requests with the correct tax information.
- Sending out materials or doing administrative work.
- Keeping track of upcoming sales requests.
The business module of ERP is in charge of all of these business deals. For future freedom and lead age, the CRM module can use the help of the Sales module.
4. Pay for the Module
As the name suggests, buy modules take care of all the cycles needed to get the things or raw materials the business needs. Buy Module includes functions like posting a seller or buyer, connecting a seller or buyer to a thing, sending a citation solicitation to merchants, recording and accepting citations, looking into sources, planning buy orders, keeping track of the items being bought, making GRNs, updating stock and other reports, and more. The Buy module works with the Inventory module and the Engineering/Creation module to ensure that supplies are always up to date.
5. Module on Money and Accounting
The account module keeps track of all the money that comes in and goes out. This Module keeps track of all record-related transactions, such as the Balance Sheet, account records, planning, bank explanations, receipts for payments, charges to executives, etc.
This part of ERP makes it easy to record financial details. Any Financial information needed for maintaining the business is accessible with a single tick in the Finance module.
6. Module for managing relationships with clients
The CRM division is helping the business run better by providing better customer service and building solid customer relationships. All the put-away subtleties of the client are accessible in the CRM module.
Client Relationship Management software can be combined with the Sales module to increase sales opportunities. The CRM module helps manage and keep track of details about the client, such as their communication history, calls, meetings, details of purchases, contract length, and so on.
7. Module for Designing and Making
The creation module is of extraordinary assistance for the assembling business for conveying the item.
This Module includes planning production, reserving machines, keeping track of the raw materials used, arranging the Bill of Materials, keeping track of daily production progress, estimating production, and giving details about actual production.
8. Management of the supply chain
The SCM module is in charge of how things move from the maker to the customer and from the customer to the maker. There are basic jobs like a maker, a Super Stockiest, a Stockiest, a wholesaler, a retailer, and so on. SCM includes planning for demand and supply, sales returns and replacements, shipping and tracking, etc.
Many small and medium-sized businesses (SMBs) need help automating communication today. ERP is a great help for these kinds of companies. ERP can help the business tasks of the group run more smoothly. The above list of modules can help you choose and change ERP modules to meet your organisation’s needs.
From the beginning to the end of making an ERP
It’s safe to assume that you’ve decided to get ERP software that’s been made just for your business. But if you’re reading this guide, you might be learning about resource planning for the first time. We said we’d talk about every part of ERP development, so we’ll start with the ERP development life cycle so you can see how everything fits together.
Related Article: A Complete Guide to NetSuite ERP Integration
Here are the seven steps you must take to develop ERP software
1. Write down your goals and hopes
The people who make decisions must answer the questions that will affect the ERP software development process in the long run. All you have to do is ask yourself the right questions:
- Which of your processes needs to be changed?
- Why does our business need an ERP system?
- Who will be using ERP?
These are, of course, just three simple questions. More questions will need to be answered if you need a more complicated ERP system. They will give you a place to start when building your ERP system.
2. Give them to the team building the ERP
Your goals and expectations will help the development team fully understand the state of your company, figure out what programming language will work best, and develop a design for your future ERP system. Remember that the more information you have when building an ERP system and connecting ERP modules, the better.
3. Start making a wireframe
Now that you and the development team have agreed on what kind of ERP software you’ll need, you can move forward. So, now the time is to start wireframing, which begins with some basic choices:
- How many modules are there
- Needed resources, such as the size of the team and the estimated number of person-hours.Â
- Timeframe.
At this point, you’ll have a precise estimate of the hours and tech stack needed.
4. Design
The name says everything. This is the most crucial step in making an ERP because it will lead to the final version of your solution. Software engineers will write the code, and designers will ensure the user experience is excellent and the visuals are smooth. The ERP will move on to the next stage if everything is good and you agree. Remember how we said it was essential to ask yourself the right questions? This also applies to design, and here’s why: Menus and buttons that look great are just the tips of the iceberg when it comes to UX/UI design. When people in your company who are supposed to use an ERP system find it easy and natural, you know the design team did a great job. This is why UX/UI designers need the information: to make great interfaces that are easy to use.
5. Develop
The development team is ready to build an ERP system when the tech stack and features are set.
6. Test, test, test
You’ll have to fine-tune, change, and rework things during this stage, but that’s all part of making high-performance software. You and the development team must work together to make good ERP software, which is why testing is so important.
7. Deploy
When your business gets feedback, bugs are fixed, and changes are made, the ERP system implementation starts to help your business.
Needs for ERP Software
An enterprise resource planning solution is a complex software programme with many layers. It comprises blocks, modules, extensions, and other parts that help the programme work. But how an ERP is set up depends on how complicated the ERP app is and how your project is set up. So, everything starts with the programming language you choose, including how quickly you can build something, how safe it is, and how much it will cost. Java,.Net and Python are the best ways to make an ERP system.
Java is used for ERP development
Java works with the cloud and includes all business functions. It can also be used as a development tool that works across platforms. Because of this, Java is the most popular programming language for ERP development.
Building ERPs with.Net
Developers use.Net to code the server side of an enterprise solution so that code can be reused and object-oriented programming can be done. Also,.Net, apps are easy to change and expand to meet your company’s needs as it grows.
Building ERP with Python
Python’s strength is that it can show how to solve problems. So, Python developers can focus on solving problems with large amounts of data instead of being held back by technical issues. Python is an excellent language for building web-based ERP apps.
Custom-made ERP software has the added benefit that modules, blocks, and databases can be made to work in the best way for your company.
Why Should You Make an ERP System?
You should develop ERP for a lot of different reasons. Here are the top reasons why you should build ERP from scratch.
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Growing Demand
Building an ERP should be on your list if you want to make a product and start your own business. One of the main reasons for this is that the need for ERP tools and systems is growing. ERP systems are used in many fields, from SaaS to e-commerce, because they offer fast and effective solutions.
To give you an idea, 88% of companies say that using ERP systems aided them success, and 50% of businesses are about to start using or upgrading their current ones. So, now is the time to create your ERP system and ERP database model to take advantage of the new opportunities.
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Lucrative Future
Both the value and the size of the ERP market are growing at a fast rate. A recent market report says that the global ERP systems market will grow at a CAGR of 10% until 2030.
As the need for transparency in core business activities, high operational efficiency, and streamlining multiple enterprise planning and resource management tends to rise, the market is likely to grow even more shortly. And now is the best time to develop ERP or start from scratch if you want to take advantage of low-hanging fruit and grow your business.
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High return on investment
Building an ERP system is easy and takes little time and money if you follow the proper steps. It only needs a one-time investment and process, but the return on investment is high (Return On Investment). Most ERP users stick with the products for a long time. As a result, you get more recurring revenue and more value over the life of a customer. All of these help your business grow more quickly.
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Chance to sell more or different products
Most ERP systems have different features and solutions only available with higher subscriptions or packages. This, in turn, helps you sell more of your products or services to customers you already have. At the same time, many of the users, primarily businesses, are likely to buy more solutions, making it easier for companies to cross-sell.
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Cost to Make ERP from Scratch
Now that you know how to start from scratch with ERP, the next question is: how much does it cost to develop ERP? Well, it mostly depends on the features you want, the tech stack you use, whether you hire a technical team, freelancers, or third-party services, and other factors.
The cost to develop ERP is also affected by where the developers live, how long it takes to create it, and other things. On average, the total cost can be anywhere between $10,000 and $300,000. There is no upper or lower limit, but you can choose developers from places with low prices, like India, China, and other parts of Asia. For Indian developers, the benefits are great because they can get industry-level skills for much less money. But it also depends on the features of your ERP system, the way your ERP database is set up, and other solutions.
Related Article: How to Build An ERP Software From Scratch
Are you looking for Enterprise Resource Planning (ERP) software?
As we’ve already discussed, ERP systems are widespread and on the rise, and new businesses are taking advantage of this more than ever. Even though the market value is high, competition is getting more challenging. To make a sound ERP system, you need to be a professional and have a clear idea of what you want. Even if this is the first time you have done this, the above guide will help you.
