Introduction to ERP System Development — Main Things to Clap Eyes on Before You Start

According to statistics, 20% of small businesses fail in the first year of their work, 30% join them in the second year, 50% of companies disappear from the market after five years of work, and in the end, only 30% of all survive to their tenth anniversary. These statistics are sad, and its reasons are almost obvious — among all other factors, one of the main reasons for the collapse of the business is the inability to properly manage its resources.

However, if we correctly combine the capabilities of technology with smart approaches to business, then the chance of getting into 30% of stable companies immediately increases. We are talking about ERP systems, and in this article, we will tell you why your business needs it and how to create this solution with the lowest cost at the greatest efficiency.

іIndividual vs Out-of-the-Box ERP System

In the most concise definition, the ERP system is a comprehensive software that combines all your resources in one place and enables instant and effective management by all the company’s departments. To get this tool for managing your business, it is possible either to purchase a subscription to a ready-made solution or to create a customized system from scratch. Each approach has its characteristics, and below we will briefly talk about them.

Advantages of an individual ERP system

• Only the necessary set of functions. Since the solution is fully customized, you receive and pay only for the opportunities that your business needs.
• Simple adaptation. When you implement a customized ERP system, you do not adapt to its functions, but its functions are already tailored to your business processes.
• Easy to maintain. Developers of personalized ERP systems also offer integration and ongoing support services.

The benefits of a turnkey solution

• Such software as NetSuite or Sage Intacct is instantly available — you don’t have to wait for the completion of the development process of an individual system.
• These solutions have well-thought-out functions for implementing most resource planning tasks.
• The cost of ready-made solutions can vary, and in general, it is possible to find an application that will fit your budget.

How to Decide What Suits Your Business Best?

When you understand that you needed a more thoughtful ability to manage resources already yesterday, then you may consider the ready-made ERP system.

However, sometimes the monthly cost of ready-made solutions is even higher than the process of creating a customized system that will remain with you forever and will maximally correspond to your individual needs. Sometimes the cost of subscribing to a universal ERP system, multiplied by several years of its use, is less profitable than creating an individual solution tailored to the goals and needs of the company.

The Process of Creating ERP System as It Happens in Reality

Below we describe the main stages of creating an ERP system for your business.

Analyze Your Key Needs

Your needs and expectations are the skeletons of the future ERP system. They will determine the functions that will be created individually for your business. Therefore, before starting the development, it is necessary to answer two key questions.

• What are the goals of creating an ERP system for your business and what specific tasks will it solve within your organization?
• Who will create the solution? Perhaps you have a team of full-time developers, or can you hire a dedicated team having outsourced this task to a third-party company?

How Do You See the Design of the Finished Application?

Your ERP system should remain as simple, intuitive and convenient as possible for all the company’s departments. Therefore, it is necessary to visualize all the necessary modules and functions that will be contained in them. Plus, it is necessary to take into account the opinions and needs of all departments that will use the system if your organization is large.

Determine the Type of the ERP System

There are two types of ERP systems — a web-based solution, when all operations will be deployed in the cloud, and a client/server ERP system that runs locally on a network of computers. Most companies choose the first option since data storage in the cloud is more reliable. In addition, an ERP web application can be run on any device without prior installation.

Choose Technology and Type of Database

JavaScript is an almost universal programming language, and it is ideal for creating an ERP system as well. JavaScript frameworks such as React, Angular and Vue.js make it possible to create a frontend part, and Node.js will help to realize a backend one.

Plus, you need to determine the type of database. An SQL database will be the right solution for small companies that need to standardize data. NoSQL databases allow you to store information in various but easily manageable formats and are more suitable for complex data infrastructures.

Integration and Testing

Most likely, before deciding to create a single ERP system, you used several different applications to manage key processes. Now, when the need for separate solutions is disappearing, you can still use them for the last time, transferring outdated apps and databases to the developers of the ERP system. It will likely be possible to reconfigure part of the functions, which will significantly speed up the process of creating a system.

Once the system is ready, it is necessary to test its operation. To do this, it will be wise to create several focus groups that will perform basic operations in each of the modules, plus test the security of the system.

A Few Words About the Cost of Development and Support

The ERP system cannot have a clearly defined price since the final cost is determined by the developed functionality. However, it is still possible to foresee some expenses and start planning a budget for creating such a solution. Clockwise has compiled several useful insights on how the costs of developing and supporting the ERP system are formed. Read the full article here to find out more real-life tips and practices.