Did you know that such business giants as Tesla, Amazon, Walmart, and Apple use ERP software? Whether you are a small startup or a multinational corporation, understanding the significance of ERP software is crucial for sustainable growth and operational excellence.
In this article, we will explore together how ERP software can help you automate many aspects of your business and make it simpler. We’ll provide you with valuable insights and expert advice to ensure your success.
Are you ready to learn how ERP software can help your business increase productivity and save costs? Let’s discover together how ERP software can simplify and streamline your business operations, paving the way for success in today’s competitive market.
A quick definition of what is an ERP software
ERP (Enterprise Resource Planning) software is defined as a single IT platform used for the integrated monitoring, control, and management of all activities, processes, and operations in a company. ERP software is an app that businesses use for managing day-to-day organizational activities and operations such as accounting, supply chain management, human resources, sales, finances, and others.
ERP systems are used in a variety of business industries, such as manufacturing, healthcare, retail, distribution, and others. When deciding which ERP system to implement for your business, you can choose between two types: off-the-shelf ERP software and a custom one.
Here are some benefits that your organization can get after implementing an ERP system:
- Data accessibility and reliability: Data powers everything that we do. Implementing an ERP system in your company helps users oversight of all company processes and enables easy access to live company data.
- Cost savings: The automation of business processes and operations lowers unnecessary administrative and operational costs. Also, you can monitor the pulse of your business in one place, which makes it easier to understand the source of higher expenses (for instance: overproduction and overordering) and thus reduce them in the future.
- Accurate forecasting: Since all the data is now in one place, the forecasts are based on more accurate and precise dates stored in the ERP system. It can help your business make accurate predictions on sales, demand, expenses, revenue, and others.
- Improved collaboration: Much like an ERP system standardizes data, it also standardizes workflows. One of the important roles of ERP software is to significantly improve interdepartmental collaboration and to automate and streamline activities within the company. Lapses in communication or unawareness of what is happening within the company’s departments are problems that ERP systems can prevent and solve.
Businesses have the option to choose cloud-based vs. on-premises ERP systems. Because the software is hosted and managed by the ERP supplier, cloud-based solutions offer scalability, flexibility, and lower infrastructure expenses.
On-premises solutions, on the other hand, provide additional control and customization possibilities, making them ideal for enterprises with strict security and compliance needs.
When choosing an EPR system for your business, it is important to take into consideration such factors as scalability, cost, the integration process, and your business’ industry requirements. Below, you can find the most popular ERP systems that are available on the market:
Oracle Net Suite is cloud-based ERP software that helps companies manage finances, operations, customer relationships, inventories, and others.
Microsoft Dynamics 365 is a cloud-based app for businesses that combines CRM and ERP. It offers modules for finance, sales, customer service, supply chain management, and more.
SAP ERP Business One is an ERP solution for small businesses. It can help in managing finances, accounting, sales, purchasing, inventory, and customer relationship reporting and analytics.
Epicor is an ERP system used in distribution, manufacturing, and service fields. It offers a wide range of functionalities to support various business processes like finance, inventory management, supply chain management, production planning, CRM, and more.
Custom ERP software vs off the shelf ERP software
One of the most frequently asked questions among entrepreneurs looking to implement ERP systems in their businesses is: should they buy an off-the-shelf system or get one customized for their company?
Let’s dive together into the differences between them. A primary difference between these two is that custom ERP software is specifically created for the business’s unique needs. This can give your company a competitive advantage since the system created is not available to anyone else.
Another significant difference between off-the-shelf and custom ERP software is the cost. Unlike off-the-shelf software, when software is personalized to fit specific business needs, it may require a higher initial investment.
In contrast to custom software, off-the-shelf ERP software can be implemented in a shorter timeframe. It has the advantage of being ready for use, without waiting for development.
Benefits of building custom ERP software
Building custom ERP software for your company is a great decision. If you are wondering why, let’s imagine an organization in the manufacturing field. Just picture all the processes, operations, and transactions that happen daily in this company.
When the company is using separate systems for various business functions like inventory management, production planning, and finance, this can lead to inefficiency, data discrepancies, and difficulties in decision-making.
Here are the key benefits that can come from the implementation of custom ERP software in your company:
- Streamlined business processes: Custom ERP software is tailored to your business’s specific needs and requirements. Therefore, you have a platform where all the departments are integrated, and you can efficiently manage inventory, production, finances, and others. As a result, you eliminate manual data processing and streamline workflows in your company.
- Improved data analysis and decision-making: All good decisions are made based on data. Because customized ERP software provides real-time access to accurate, up-to-date, and centralized data, it enables informed decision-making. It allows managers to make data-driven decisions, identify trends, forecast expenses, and revenues, and prevent some problems.
- Enhanced productivity and efficiency: By automating many of the administrative, paper-work, and manual tasks, ERP software improves productivity. It allows employees to focus on important, creative tasks and therefore improves efficiency.
- Increased customer satisfaction: Customer satisfaction is key to the success and sustainability of a business. Implementing ERP software in your company can help improve the overall quality of service, responsiveness, communication, and collaboration. ERP systems often include CRM modules (customer relationship management) that centralize clients’ data. This allows your company to make clients’ experiences more personalized, anticipate their needs, and deliver quality customer service.
Costs of building a custom ERP system
First, is great to understand that ERP software is an investment, not just a spending. According to a Softwarepath report, the average budget per user for an ERP project in 2022 was 9000$. Generally, the cost of an ERP app can range from tens of thousands to hundreds of thousands.
But what are the factors that influence the cost of developing ERP software? We mentioned below some important elements that can affect the project's cost.
The complexity of the app and the dimension of the organization for whom it is designed are the first factors that can influence the cost. Smaller, less complex ERP apps may fall on the lower end of the cost spectrum, while larger, more complex solutions with extensive customization requirements can be on the higher end.
The costs of hiring developers, designers, project managers, and other team members are also a large part of the project’s budget. The cost can vary based on the location of the development team and their expertise.
The customization and configuration needed for the ERP system affect the cost. Customizing the system to correspond with unique business processes or integrating it with existing software applications may increase development time and, therefore, cost.
The scalability and flexibility of the future app also affect the cost. If the ERP system needs to accommodate future growth and scalability, it may require additional investment. Designing the system to handle increased data volumes, users, and transactions can impact the cost of the product.
It’s important to note that these are only the most common factors that influence the cost, but there are also many others such as training of staff, maintenance, testing, data transfer, and others.
Timeframe for building an ERP system
Building a custom ERP system for your business can take several months, usually from 6 to 12 or more. However, the actual timeframe for developing an ERP may differ depending on more factors.
It's very important to note that developing an ERP system is a complex undertaking that involves various stages and requires a coordinated effort from an experienced development team. What details are considered when estimating the timeframe for development? You can find below three major factors that influence significant development time.
- The company’s size and requirements: for a small or mid-sized organization with relatively simple requirements, business processes, and operations the development time can be shorter. On the other hand, if you are looking to develop an ERP system for a large organization with complex business processes and many employees, it may take more time.
- Scope and functionality of the ERP system: The depth of functionality required in the ERP system influences the timeframe for the project. If the system needs to cover a wide range of business functions such as finance, human resources, inventory management, supply chain management, and customer relationship management, it will require more development effort and time.
- Team size and expertise: The size and expertise of the development team you choose can impact the time required to build the ERP system. A larger team can potentially handle more tasks simultaneously, reducing the overall development time. Additionally, the expertise and familiarity of the team with ERP systems and development technologies can influence efficiency and speed.
Best practices for building an ERP app: Oneest's advice
Are you planning to build an ERP app for your business but have some concerns? As a leading custom software development service provider, we’ve got some secret tips and best practices for you to apply.
Building an ERP app from scratch can be challenging for many companies. Here are some steps on how you can organize your ERP APP development process:
- Conducting thorough research and planning: “If you don’t know where you are going, you will end up someplace else.” Researching your company’s needs is a must before diving into the ERP development process. You can speak with employees from different departments to better understand their problems and think about how you could solve them through an ERP system. Many businesses skip this part. However, let us tell you a secret: Poor planning is one of the most common reasons why ERP Apps fail.
- Defining clear requirements and scope: The importance of requirement gathering and analysis should not be neglected. Before drawing up the plan, you need to find an answer to the question: What needs should satisfy the ERP system? Defining requirements and goals is important to getting a reliable, useful, and quality product. From our experience, we know that gathering business needs, requirements, and problems is easier when you engage stakeholders and end-users to gather their feedback.
- Choosing the right technology stack: The technology stack plays a crucial role in ERP’s app success. From our past projects, we know that the first things to consider when choosing the technology stack for your app are the business’ needs, the app’s complexity, scalability, and required integrations.
- Collaborating with a reputable software development company: The question is: who can build this product for you? To ensure that your app is developed accordingly, you need to partner with a reputable software company. Delegating ERP software development to a dedicated team can save you time and financial resources. If you want to build an ERP app from scratch, you can contact us. We will be happy to discuss more about your project.
- Testing and quality assurance: Does your business need a successful ERP system without errors? Test it! Testing and quality assurance are essential steps in the development process. Once you have centralized all your business knowledge and data, it’s time to start testing it and fixing any errors that may occur.
By following our best practices, you can design and develop the most suitable ERP system for your business. If you are looking for a reliable team to build an ERP system from scratch, feel free to contact us.
Oneest experience in custom ERP software development
Developing an ERP system is a complex process that involves integrating various business processes and functions into a single software solution.
Our aim at Oneest is to help businesses grow by developing high-quality custom software. We recently developed an ERP solution for Globcom, a company in the automotive industry with over 16 years on the market.
The main challenge for our client was managing human resources in their company. Multiple channels of communication and management in Excel spreadsheets were sources of many operational problems and communication gaps They have reached the moment when the team has grown considerably and there is a need to automate the entire management process.
The result? Our dedicated efforts led to the creation of an ERP solution that makes the management process easier, more accessible, and clearer for all users. We designed successful ERP software that improved efficiency, data accuracy, and decision-making.
How can we measure this? Here are the company’s results in numbers after integrating our custom ERP system:
- Positive ROI in 12 months;
- Saving ~50k USD per year by reducing the operational staff;
- One new big contract signed with the largest automotive group in Europe.
If you are interested in reading more about our projects, you can check out our portfolio here.
In conclusion, customized ERP software provides a unique solution for organizations looking to streamline their operations, automate tasks, centralize data, and organize workflow efficiently.
If you are looking to build a personalized ERP system for your organization, the key focus should be on ERP features and functionality, the process of implementation and training, maintenance and updates powered by a dedicated team, and finally, data protection and security.
Are you looking to grow your business, automate inefficient tasks, and increase profitability? ERP software empowers businesses to adapt to a competitive market and drive sustainable growth by enabling real-time data access, process automation, and collaboration.
Consider that as technology advances, ERP software will become a part of every successful and modern business. So, make sure to take advantage of this as soon as you can.
Ready to embark on an exciting journey of tech exploration? We invite you to read our blog and get more valuable insights, stories, and informative articles.
Ready to take your business to the next level with a custom ERP system? Get in touch with us if you are looking for a reliable software development company from Eastern Europe to build a solution that empowers your business and aligns with your goals.