As per the report by Panorama Consulting Solutions, around 23% of ERP implementation has been unproductive.
The key reasons behind this are buying a non-essential turnkey system as well as bad planning. Nowadays, we’ll look at how to overcome these issues by utilizing a suitable approach to build up and implement an ERP platform from scratch.
However, what is an ERP system? How to build an ERP software from the scratch? You’ll find answers to such questions in this blog post.
An Introduction to ERP System
An ERP or Enterprise Resource Planning system refers to the business process management software that integrates as well as properly manages supply chain, reporting, finance, commerce, human resources and manufacturing.
Before, ERP systems were massive software packages that function separately and didn’t exchange information with different systems. Every system had to be complex, unique and costly to adapt to fulfill the requirements of a specific company, which delayed the introduction of the latest technologies and optimization of the process.
What makes ERP systems quite different is that they blend every process into the most flexible system. They ensure data availability not just in the ERP system itself, but however, in online stores, office applications, and consumer interaction solutions. All data is combined together to boost analytics and enable process optimization across the company.
Also, an advanced ERP solution provides better privacy, security, adaptable deployment alternatives, sustainability and personalization with very less coding. Significantly, they bring more flexibility as well as business continuity with analytics that results in faster innovation, shaping the future of your business.
Benefits of ERP Software
Before directly jumping to build an ERP software, let’s check out how using it can be advantageous for your business. Here are the major benefits:
ERP automation is available for different types of enterprises. It can be used in banks, manufacturing, etc.
2. Flexibility and scalability
This software is extremely compatible with various applications.
3. Unified platform
Its proper implementation will develop a unified information environment in the company, which help facilitate as well as improve the work of management, departments, and employees.
4. Proper planning and accounting
ERP systems have the ability to store and even process huge amounts of data. Further, this allows more capably allocating of production resources, storing records, and so on.
5. Distribution of access rights
ERP enables the distribution of access rights between employees of any specific department and secures important corporate data from the eye of a spy.
Steps and Process Build An ERP Software From Scratch
ERP software development is a challenging dev job, and it needs a combined vision of your business’s growth strategy. However, by only reading on and knowing how to overcome this challenge is not sufficient.
That’s why you need to follow the below-given guide on building and simply implementing an ERP system for your business.
1. Know Your Expectations
Before you quickly build an ERP software, your company has to address two key questions:
- What business requirements should ERP software satisfy for your company?
- Does your company have the abilities needed to build ERP, or do you need to appoint a team through an outsource provider?
When you get the answer to the first question, the other question should itself. Make sure you connect with both key company stakeholders as well as IT Professionals while making goals as well as requirements for the ERP system. This will make sure you make reachable expectations.
2. Think About ERP System Design
Now it’s time to take a look at the technical side of ERP development. If it’s your new experience with ERP software, find out more about the general parts of ERP software other industry players are leveraging.
- If possible, make a blueprint of the ERP system that should be designed.
- If you’re making an ERP for a big organization with various departments, it’s crucial to involve representatives of each department in planning.
This will assist amass all crucial features and planning specific module sets for every department.
3. Begin Wireframing
Now, you need to decide on the kind of system you need to implement. The two common alternatives are right client/server ERP or web-based ERP software.
Make a systematic plan for the development process. If you’re outsourcing your ERP to a professional team, it’s a great practice to take part in wireframing so that you understand the entire process. Here are the main things to walk through:
- Outline modules: Depending upon your ERP’s functionality, define the modules it must have Such modules could be a blend of CRM, supply chain management, finance management, or any resource management areas depending on your requirements.
- Resources required: Figure out the team size working on the project as well as the resources that the team will require.
- Timeframe: Even though, you can’t come up with deadlines or concrete milestones, try to set up a timeframe for the project.
4. Choose the Suitable Technology
To develop a web-based ERP app, you must choose the appropriate tech toolkit for developers:
- Hosting: You can either host an ERP system on your local server or in the cloud. Most enterprises choose the second alternative because the cloud is highly secure and doesn’t need consistent in-house maintenance.
- Database: Pick a reliable database for keeping up the company data. Typically, you need to pick between relational as well as non-relational databases. This selection will determine how your system organizes as well as uses data. Relational/SQL databases are best suitable for small companies that need demand for standardization.
5. Combine Web-Based ERP with existing infrastructure
Prior to accepting ERP, companies generally depend on different workflows and apps to organize main processes. Before beginning any progress on the project, consolidate or hand over legacy apps as well as databases to the ERP software development company or even your in-house developers.
While building up a new app requires more effort, with legacy apps ERP developers could leverage re-configuring. Substantially, this will boost the coding process.
6. Test ERP implementation
When you’ve transmitted all of your knowledge related to the company’s business to a single ERP system, it’s time to begin testing. There are many processes you must take into account including in this review process:
- Review if the system meets primary security, integration as well as functional requirements.
- ERP’s functionality is tested by conducting sales or accounting operations across various modules. Compute the accuracy of the results that the system returns.
- Hire focus groups to examine the defined modules as well as module sets.
- We suggest you run security testing with Web Application Firewalls (WAFs). This will enable you to track as well as respond to weaknesses as they develop.
Does my company need ERP Software?
Just knowing how to develop your own ERP software is not sufficient. It’s crucial to know whether your company wants such a system. Here are three key signs that will help you know whether your company requires an ERP system or not:
1. Existing solutions are deterring the company’s development.
For instance, in the previous stages, a business has no needed capabilities of a particular information system. However, now you know software just slows down your growth in the market. Of course, you have expanded this software, and you must consider changing it.
2. The company utilizes heterogeneous programs.
You are facing a lot of issues of integration as well as data exchange between the software in the company. Frankly, it all doesn’t work right.
3. Your software is not compatible with the mobile devices of employees and customers.
The IT sphere is among the most dynamically growing branches of business. If now your specific software doesn’t enable you to accept the modern market changes, then after only a year, it may turn totally out of date.
It’s great to allow the transition to a modern and highly functional solution now. A decent ERP system is consistently transforming and enhancing. Developers keep updating and improving the product considering the latest trends as well as market requirements. You don’t need to worry about upcoming nuances even after 5 years.
Here are a few situations that also show you need to develop ERP from scratch for your company:
- With great competition and limited geography, you have to decrease costs and reduce+ failures, thereby maintaining a suitable cost and profitability.
- Your company holds a great number of different-scale transactions with a huge number of contractors.
- You have to conduct standard processes on a high scale.
- Human factors result in major losses as well as inaccuracies in financial transactions.
The Cost of Custom ERP Software Development
Firstly, every company has its specific ERP. So, when you are thinking of having an ERP software, think about your budget and the ERP development cost that is generally determined on the basis of the number of departments that will utilize the system as well as the functionalities the system will deliver. Small businesses pay less than large enterprises as the latter need both – more potential users and excellent functionality.
Do you want to Build An ERP Software from iTechnolabs?
How to build an ERP software? We hope that now you have a perfect answer to this question. ERP is a key tool for ERP planning. Such software is made to secure and process heavy data, which will enable more proficiently allocated production resources as well as make the right management decisions.
It is top-notch planning in a big business that gets a tangible effect. Developing an ERP from scratch is a tough process. We hope that this blog helped you know the unique features of a functional ERP system and determine how to develop your own ERP software.