A successful startup eventually reaches a point where your spreadsheets start giving you headaches due to the massive incorporation of data. That’s when you have to hire new people to look after your supply chain, accounting, etc.
What if I tell you there’s an easier way out?
You could minimize the management hassle and the number of paychecks you have to issue each month for your employees as well.
Well, an ERP, or Enterprise Resource Planning (ERP), is your way out. It can handle most of the management work with minimal human impact.
Here, we will learn what exactly an ERP is, its types, and its benefits.
I will also show you our complete ERP development process in 7 steps.
What is ERP Development?
ERP Development is the process of creating and setting up an ERP (Enterprise Resource Planning) system. This system helps businesses manage and integrate important parts of their operations, like accounting, sales, and inventory, in one place.
ERP is an example of horizontal SaaS, and its development typically involves a combination of software development, business analysis, and project management to tailor the system to an organization’s specific needs.
Companies use ERP systems for diverse purposes, including business expansion, cost reduction, and operational enhancements.
A Market Overview of ERP
As per the statistics, 53% of businesses view investing in ERP systems as a high priority. The main motivations for adopting ERP include a desire for greater efficiency (35%) and cost savings (29%).
Allied Market Research forecasts that the global ERP market will expand at a 9.8% annual growth rate from 2020 to 2026, reaching a value of over USD 86 billion by 2027(See the figure below). The need for operational efficiency drives this growth, with the rising adoption of cloud and mobile applications in enterprise digital transformation and the growing demand for data-driven decision-making.
Global Enterprise Resource Planning (ERP) Software Market for the year 2019 and 2027
Module and Features of ERP
When you start feeling overwhelmed by spreadsheets and management tasks in your growing startup, it’s time to consider an ERP system.
Like a well-coordinated orchestra, each part of an ERP system works together to create harmony in your business operations.
Let’s break down these parts, or modules, in simple terms:
Finance and Accounting
The finance and accounting module is crucial in any ERP system, offering a comprehensive view of a business’s financial health. It tracks money owed (accounts payable) and money expected (accounts receivable), while managing essential records in the general ledger.
This module simplifies complex tasks, automating billing, payments, and account balancing, which helps in efficiently closing financial books and adhering to accounting standards. It’s also invaluable for financial planning, providing key data for critical reports like profit and loss statements.
Human Resources
Human Resource Management (HRM) modules serve as comprehensive systems for all employee-related data, much like a personalized CRM for each staff member. They hold extensive records, including performance evaluations, job details, and offer letters.
Notably, they track work hours, Paid Time Off (PTO), sick leaves, and benefits. These modules streamline data management, eliminating the need for multiple spreadsheets by centralizing and accurately maintaining all employee information.
Customer Relationship Management (CRM)
A Customer Relationship Management (CRM) system is a versatile tool that does more than just store customer information. It tracks and manages sales leads, helping businesses identify and target potential customers for promotions and cross-sell opportunities.
The system also allows for customer segmentation, enabling tailored marketing strategies. Additionally, advanced CRMs come equipped with sophisticated contact managers and comprehensive reporting tools, enhancing overall business efficiency and customer service effectiveness.
Supply Chain Management
The supply chain management module in a system comprehensively tracks the movement of supplies and goods across the entire supply chain, from sub-suppliers through to the final consumers or retailers. It also handles the management of materials or products that are returned.
This module can encompass various functionalities, including procurement, inventory management, manufacturing, order management, and warehouse management, but it often extends beyond these core capabilities.
Inventory
The inventory management module, integrated with a procurement tool, offers detailed tracking of stock down to each SKU, ensuring businesses keep just enough inventory without tying up too much cash.
It analyzes sales trends, aiding in informed decisions to boost profit margins and increase the rate at which inventory is sold. Ideal for businesses without extensive supply chain management modules, it’s versatile enough to handle orders and shipping, enhancing overall efficiency.
Sales
The sales module is designed to boost sales by helping you find new customers, close deals, and look after them once they’ve purchased your product. It works like a personal sales coach, guiding your team through every step of the sales process, from initial contact to final sales and beyond. This module simplifies the sales journey, making it more effective and user-friendly for your team.
Purchase
The purchase module is like having a personal shopping assistant for your business. It manages the entire process of ordering from suppliers, from placing the order to confirming that you receive what you asked for.
This module is especially helpful in making sure your buying activities are efficient and accurate, acting as a dedicated helper for your company’s procurement needs. It simplifies the often complex task of purchasing, ensuring your business gets what it needs without hassle.
Types of ERP System
There are over 250 different kinds of ERP software, making picking the right one for your business a big and time-consuming job.
To help you out, we’ve grouped them into 4 main categories:
1. Custom-built, ready-made, or hybrid solutions
Custom-built ERP (Enterprise Resource Planning) software refers to a system specifically designed and developed to meet the requirements of an organization.
Unlike off-the-shelf ERP solutions like Microsoft Dynamics or SAP Business One, which offer a standard set of features, custom ERP systems are tailor-made to fit the specific processes, workflows, and business objectives of a particular company.
If you want to custom-build ERP for your company, you can use websites like Clutch to find the best ERP development company.
You can see what other customers have said about them, their ratings, and how much they charge per hour.
You can choose a hybrid model if you already use an ERP system but want to add new parts or special features.
2. Cloud-based or on-premises
When you’re thinking about getting an ERP (Enterprise Resource Planning) system, you need to decide if you want it on your own premises or in the cloud.
Cloud ERPs are becoming more popular, and almost every ERP provider offers a cloud option.
But, there are still good reasons to choose an on-premises ERP for some businesses.
Cloud-Hosted ERPs
A cloud-based ERP is an internet-hosted system, often more affordable and simpler to budget for than on-premise ERPs. You typically pay a regular fee covering training, support, and updates. It’s especially suitable for small businesses due to lower initial costs and quicker setup.
While you don’t need an in-house IT team, as the provider handles maintenance, this also means less control and customization. Data security is a concern, so choosing a provider with robust security or getting an external security assessment is wise.
Popular cloud ERPs include Oracle Netsuite, Microsoft Azure, Infor CloudSuite, and Acumatica Cloud ERP.
ERPs Installed On-Site
On-premise ERP software is set up right in your company’s own computers and servers. The cost depends on your company’s size and how many people will use it.
You pay for it all at once, which is a big investment, but you must also cover ongoing costs for training, support, and updates. You have full control over this system and can customize it as you like, but you’ll need IT experts to keep it running smoothly and up-to-date.
Well-known on-premise ERPs include SAP ERP, SYSPRO ERP., and Microsoft Dynamics GP.
Hybrid ERP
Some companies offer a hybrid ERP option. This means you have on-premise software, but it’s combined with storage, services, or processing that’s done in the cloud, either private or public. This mix gives you a bit of both worlds.
3. Generic or industry-specific
Deciding between a general ERP and one made for your industry is a big choice. General ERPs usually cost less at first, but an industry-specific ERP can really help your business grow. It has special features that fit what you need better.
General ERPs
General ERPs are good for many types of businesses. They have strong tools for managing money and accounts, but they’re not as focused on operations. They’re a great first choice for businesses that are unique or follow standard ways of working. Plus, they’re cheaper than industry-specific ERPs.
However, not all general ERPs are the same. Some have different features. Here are the most common ones you’ll find:
- Accounting and financial management
- Customer relationship management (CRM)
- Business intelligence (BI)
- Analytics
- Human resources (HR)
- Inventory management
- Supply chain management
- Planning and forecasting
- Manufacturing
Programs like Epicor ERP, Infor ERP, and SAP Business One are good examples. They’re mainly general but have some special features you can add to your industry.
Specialized ERPs for Different Industries
Vertical ERPs, or industry-specific ERPs, are designed for fields like professional services or distribution. They come with essential tools and features, plus extra functions made just for that industry. These industry-focused ERP systems have tools to do tasks unique to their specific businesses.
You might need extra software or even build something from scratch to do the same things with a regular ERP. For manufacturing, top ERP choices are Microsoft Dynamics, Infor CloudSuite, and QAD. Sage Intacct, Microsoft Dynamics, Oracle Financial ( ERP Accounting Software), and Oracle NetSuite are highly regarded ERP options in distribution.
4. Designed for small, midsize, or large companies
Whether you’re a small startup looking for cost-effective solutions or a multinational corporation seeking robust control, there’s an ERP system tailored to meet your specific needs. Let’s learn more about them:
Small Business ERPs
Small businesses often opt for lightweight ERPs because they can’t invest much in complex systems. Cloud-based ERPs, like Oracle Netsuite, Sage, and Acumatica, are cost-effective choices. They require no IT team, offer scalability, and adapt as your business grows. These systems streamline finances, operations, and customer relations for small businesses.
Midsize Business ERPs
Midsize companies seek ERP systems to streamline processes and gain visibility as they outgrow their existing tools. Cloud ERPs like Microsoft Dynamics 365 Business Central, Oracle JD Edwards, and Oracle NetSuite offer efficiency and automation. They help manage operations, from customer service to inventory.
Enterprise ERPs
Large enterprises prefer on-premises or hybrid ERP systems for control and connectivity. Custom-built or ordered systems offer extensive features, like SAP S/4HANA and Oracle ERP Cloud.
SAP S/4HANA provides smart automation and analytics as an ERP in Medical sectors, while Oracle ERP Cloud offers scalability, security, and a wide range of components like reporting and automation tools for big industries.
Custom ERP solutions are standard for large companies, allowing full control over complex processes.
ERP Development in 7 Steps
ERP software development is a comprehensive process that requires careful planning and execution. Let’s look at the step-by-step process of ERP software development, from ideation to implementation.
Step 1: Ideation
The first step involves understanding your business processes, identifying your needs, and setting clear objectives for the ERP system. Ask yourself the following questions:
- What specific problems are your company facing right now, and how is it going to be solved?
- Does your company already have expertise, or do you need to hire expertise to develop ERP?
Questions like this are important for defining the scope of the ERP solution.
Step 2: Choosing the Right Tech Stack
Once the objectives are clear, the next step is to choose the right technology stack. The tech stack should support your business needs, be scalable for future growth, and facilitate seamless integration with existing systems.
You can use HTML, CSS, JavaScript, or the front end. On the other hand, Ruby on Rails, .NET, Spring for Java, Django Flask for Python, Swift, or Objective-C are the most popular choices for the backend.
Step 3: Designing the System Architecture
In this third step of creating an ERP (Enterprise Resource Planning) system, we design its blueprint or architecture. This involves deciding how the ERP will be structured, including its parts (modules), how data will move around, and what the user screens will look like. Getting this step right is crucial for building a strong and effective ERP system that works well and meets business needs.
Step 4: ERP Development
This involves the actual coding and creation of the ERP system. A team of skilled developers follows the project plan and system design to do this. They work together to create the system, making sure it meets all the requirements and works well.
This step is crucial for turning the planned ERP features into a functioning system that businesses can use. Software engineers make use of different APIs from third-party services to access the data and display it into the ERP software.
Step 5: Testing and Quality Assurance
Step 5 of ERP development is about checking and making sure the system is good to go. Once the system is built, it’s carefully tested to see if it does what it’s supposed to do.
A team focused on quality checks it for any issues or errors and thinks of ways to improve it. This step is really important to ensure that the ERP system works well and can be trusted when used in real business situations.
Step 6: Implementation and Integration
In this step, we put the new ERP system into use and connect it with the company’s existing setup. It’s important to move all the old data to the new system and teach people how to use it properly.
Making sure this change goes smoothly helps the business get the most out of the ERP system and keeps daily work from being interrupted too much.
Step 7: Maintenance and Support
This is the final step after setting up the ERP system, it needs regular maintenance and support. This step is important to keep the system running smoothly, fix any problems that come up, and update or improve it as needed. It helps make sure the ERP system continues to work well and supports the business’s needs over time.
Benefits of ERP Systems
ERP systems make work easier by organizing everything in one place. Keeping you ahead in a busy business world. Here are the benefits of ERP Systems:
Enhanced Productivity
ERP systems boost productivity by automating regular tasks that were previously done manually. This automation leads to significant time savings for your company. It reduces the chances of errors, duplication of work, and the need for rework.
As a result, employees can work more efficiently and get more done in less time. Additionally, with ERP systems taking care of repetitive tasks, your staff can focus more on activities that generate revenue for your business.
Better Teamwork
ERP brings a unified system that holds all business-related information, which improves teamwork across different branches or departments of a company. It helps in reducing delays in communication within the organization. This is particularly beneficial for businesses that have a widespread network of branches or affiliates, whether they are spread across different states or even countries.
Quicker Decision-Making
ERP aids in making faster business decisions by providing real-time access to data. It simplifies the process of reporting and analysis. With up-to-date and easily accessible data, decision-makers can quickly understand the current state of affairs and make informed decisions. This real-time data visibility is crucial for responding swiftly to market changes and business opportunities.
Centralized Data for Faster Service
ERP helps in offering better customer service. It uses a single place to keep all key information about sales and customers. This makes it simpler for people like sales managers and customer support staff to talk to customers. It also speeds up how fast they can help customers.
Quick Access to Customer Histories
ERP makes it easier to look up what customers have done in the past. This leads to extra advantages. For example, it helps in understanding how customers behave and what they are likely to want. It also makes it easier to guess correctly how much of a product will be needed and to make sure it’s available when needed.
Easy Compliance Management
ERP systems simplify adherence to regulations, ensuring your business stays compliant with evolving industry standards and laws. This feature is crucial for maintaining a competitive edge and adhering to necessary legal requirements, providing peace of mind and reducing the risk of non-compliance penalties.
Growth and Adaptability
ERP software is highly scalable, adapting seamlessly to your business’s changing needs. Whether it’s expanding operations, increasing inventory, or integrating new functions, ERP systems support your business’s growth and transformation, ensuring that technological capabilities evolve in tandem with your enterprise’s expansion and diversification.
Why Choose Core Devs as Your ERP Services Partner?
When it comes to Enterprise Resource Planning (ERP) services, choosing the right partner can be the difference between an ERP system that merely functions and one that transforms your business operations. Core Devs stand at the forefront of ERP service providers, delivering excellence, innovation, and results that drive your organization’s growth.
Let’s tour what services you can get if you choose CoreDevs as your ERP Services Partner –
Proven Expertise in ERP Solutions
At CoreDevs, ERP is not just a service; it’s our passion and expertise. With years of experience and a team of seasoned ERP professionals, we have successfully implemented ERP solutions across diverse industries. Our track record is a testament to our ability to understand your unique business needs and tailor ERP systems that seamlessly align with your objectives.
Tailored Solutions for Every Business
We understand that one size doesn’t fit all. CoreDevs specializes in creating customized ERP solutions that are designed to fit your business like a glove. Whether you’re a small startup or a large enterprise, our ERP services are scalable and adaptable, ensuring that you receive precisely what your organization requires to thrive.
Seamless Integration and Implementation
ERP implementation can be daunting, but not when you partner with CoreDevs. Our experts work closely with your team to ensure a smooth transition. We handle the technical aspects, data migration, and system integration, allowing your staff to focus on what they do best – running your business.
Continuous Support and Maintenance
Our commitment to your success doesn’t end with implementation. CoreDevs offers comprehensive support and maintenance services, ensuring that your ERP system runs at peak performance. We provide regular updates, troubleshooting, and ongoing optimization to keep your ERP solution in sync with your evolving business needs.
Cutting-edge Technology and Innovation
The ERP landscape is constantly evolving, and CoreDevs stays at the forefront of technological advancements. We incorporate the latest trends, such as AI, machine learning, and data analytics, into your ERP system, providing you with a competitive edge in the market.
Cost-Efficiency and ROI
Investing in ERP services is an investment in your business’s future. CoreDevs understands the importance of a healthy ROI. Our services are cost-effective and designed to maximize the value you receive from your ERP system, ensuring that every dollar spent translates into business growth.
Global Reach, Local Touch
While we have a global presence, Core Devs offers a local touch. We understand the significance of regional nuances and regulations. Our global expertise combined with local insights ensures that your ERP solution complies with local requirements, giving you peace of mind.
When you choose Core Devs as your ERP services partner, you’re not just choosing a vendor but a collaborator dedicated to your business’s success. Experience the transformative power of ERP with Core Devs and take your organization to new heights.
Final Words
In the modern digital world, having an ERP system is essential for all kinds of businesses, big or small. You need a good plan, the right development partner, and smooth integration to make it work well.
ERP development isn’t just about going digital; it’s about becoming more efficient, making more intelligent decisions, and staying ahead of the competition in today’s fast-paced business world. It’s the way to succeed and grow. Check out more of our services today!
