Custom ERP System: What Business Challenges It Can Solve
Of course, shifting from a traditional management model to customized ERP software may appear uncomfortable in the short-term, but it’ll all pay off in a long-term perspective. We’ve already touched upon some processes ERP software solutions can handle. It’s time to talk more specifically about them and find out what improvements ERP system development can bring to your business.
Human Capital Management
There are a variety of HCM-focused products available on the market. They are mostly standalone solutions that won’t give you the same level of process control the custom ERP system can provide you.
By building an ERP system from scratch, you can help your HR department automate a bunch of time-consuming processes like payroll or employee’s performance evaluation.
Besides, it’s possible to improve the talent acquisition process by providing recruiters with all the information they may need and, correspondingly, making informed decisions. Except for this, custom ERP systems can deal with performance and compensation management, assessment of skills, etc.
ERP software solutions are made to analyze and manage data. That makes them a perfect choice for improving the company’s planning processes. The reporting can be adjusted to allow employees to look through the job data and schedule history by departments. In turn, such functionality allows the chiefs of departments to manage resources more carefully and meet deadlines.
The majority of companies have their well-tested inventory management process. However, who said they could not be optimized even better?
Custom ERP development makes inventory management much more flexible and allows keeping the stable inventory level (nor high neither low).
It’s an essential 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 to allow employees 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 allow creating reports containing only relevant data.
Without custom ERP system development, your company will have to utilize four or more different software solutions to cover a specific business area’s needs. Imagine what productivity you can reach by combining them all and allowing them to interact.
Talking about interfaces, remember that you should take care of UI/UX design to create high-quality ERP software. ERP systems are data-driven, and that fact makes them hard to use without a well-thought-out plan.
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 manage every company in the world virtually. That’s why the development of an Enterprise Resource Planning platform 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. Simultaneously, custom ERP development is like building a house from scratch where you can personalize everything you want and add everything you need.
So, let’s find out how to approach the ERP system development process step-by-step.
Get the Vision
How to make ERP software?
There are two ways to get this work done. You can 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 specific feature your company needs or problems you want to solve with this software’s help.
A quality custom ERP system should be able to manage at least data flows of different activities (e.g. sales, planning) and 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. That is the first thing you should consider even before the ERP development process.
Prepare the Blueprint:
Now you have an estimated vision of your custom ERP solution. To understand how to create an ERP system for the business, you should brainstorm with the colleagues and specify your image, filling it with essential details.
It’s barely possible to develop a well-thought-out ERP business software without involving chiefs of the departments where the system will be utilized.
So, conduct a meeting with department leaders, find out their pains, think over the ERP features list, and write down everything you decide. That will help you describe your expectations and results of building the ERP system to your in-house developers or software development company you hire.
Make Informed Decisions
ERP developers have to joint all the enterprise’s data from various departments into a single database with hierarchical architecture. That 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, and 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 a canned database structure and adapt it to the business needs.
- It was decided to build ERP from scratch and use existing modules (if any) and create new ones.
In a nutshell, they need to redesign and tailor business processes to customize the ERP system to track and manage them correctly. So if you choose a third-party service, developers will have to operate with the existing database structure, which 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 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 a reliable IT service provider.
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 $700,000. 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.
To learn the cost of developing an ERP system, you can multiply an hourly rate of a 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 $700,000. So, it’s better to contact the IT service provider to specify details and request more precise numbers.
How to Create an ERP Software [Checklist]
- Step 1. Consider why you need to build a custom ERP software.
- Step 2. Develop your vision of the system.
- Step 3. Meet with department chiefs to create a list of the required functionality.
- Step 4. Make a decision where to host your custom ERP solution.
- Step 5. Form an in-house team or get a software development company to help you develop the ERP system.
- Step 6. Calculate the required time and cost to build the solution.
- Step 7. Start the development phase.
- Step 8. Test how well it integrates with the company’s business processes.
- Step 9. Deploy and enjoy.
Indeed, the cost of building a custom ERP system can be pretty. However, bear in mind that it’s designed to optimize your business processes and help you generate more money. Besides, due to modularity, you can start from small and add essential features as you scale.
Another undeniable advantage of a custom ERP system is that it fits your business processes instead of business fitting into the software solution.
If you think it’s time to improve and automate your business processes with and you need a reliable ERP development company to consult with, you can drop a line to our experienced team. Our tech-savvy managers will answer all your questions and provide with FREE project estimation.