Enterprise Resource Planning (ERP) systems are large, complex software solutions that bring together different business processes and functions into a single system. It’s no small feat developing an ERP system from scratch, and you need to have a very clear picture of what you want, how much you can spend, and how long you can dedicate to it. However, even small companies can create a custom ERP that is tailored to their unique needs if you tackle it in the right way.
ERP development would not be possible without understanding ERP systems first and what their core functions. The goal of ERP software is to make information flow more easily between different business activities and become more efficient.
Some of the key capabilities of ERP systems include:
ERP systems created with the help of ERP development services centralize information and processes, removing silos, reducing redundancies, and providing organization-wide transparency. It results in huge productivity, efficiency and informed decision-making.
Implementing an ERP system is a strategic move for any organization that wants to scale while optimizing operations. However, going with an off-the-shelf ERP may not be enough if your business has unique needs. This is where having built a custom ERP from scratch gives you more flexibility.
An ERP system development is a project that needs to be planned carefully in terms of strategy, budget, resources, timelines and all others. Aligning these elements before rushing into ERP software development will likely reduce costs, shorten development time and deliver a solution that exceeds expectations.
Here are some best practices to follow during the planning process:
You must be clear on why you are investing in an ERP project. It’s solving what pain points? What is it trying to offer? Outline the tangible outcomes you want to achieve in terms of efficiency, costs, decision making and other metrics. This also helps define requirements.
Conduct in-depth analysis across all business units to understand their systems, processes, data, and pain points. Identify how the desired ERP system can address these needs through process automation, data centralization, reporting and more. Prioritize ‘must-have’ vs ‘good-to-have’ features.
Account for future business growth within your développement ERP plans. Evaluate how well vendor solutions can scale with evolving needs or if a custom platform offers more flexibility.
A detailed requirements document also helps provide more accurate cost and effort estimates. Allocate sufficient budget based on projected ROI.
ERP systems development requires expertise in business analysis, software development, project management, change management, and more.
Some tips for assembling an ERP team:
A comprehensive ERP blueprint is essential for guiding teams in the development of ERP, tracking progress, and minimizing risks of scope creep.
Elements to cover within an ERP blueprint include:
Technical specifications for server configuration, network topology, integrations, data models, interface design etc.
Detailed documentation of all processes, workflows, approvals, reports, analytics etc. within each ERP module.
Strategy for migrating legacy data from existing systems into the new ERP database.
Types of testing, metrics, timelines and responsibilities for effective quality assurance.
Different training modules are available for administrators, end-users, developers, and other stakeholders.
Phase-wise plan for pilots, user acceptance testing, migration and organization-wide rollout per location or department.
Investing sufficient time into blueprinting before the development of ERP system can significantly de-risk an ERP implementation and ensure stakeholder alignment.
A key decision point in ERP planning is whether to build a custom system, buy a readymade ERP product, or opt for some combination of both. Below is an overview of key factors to evaluate:
Organizations can take a middle path by opting for an off-the-shelf ERP as the baseline but developing custom add-ons for unique processes. This provides faster ROI and customization. However, upgrades and maintenance of multiple systems must be managed carefully.
Choosing between custom-built vs readymade ERP requires trade-off analysis across factors like flexibility, ownership, risks, resources and timelines.
Once ERP software requirements are finalized and design specifications documented, development teams can begin implementing the system using proven frameworks.
Like any enterprise software application, ERP systems have some foundational technology layers powering the backend:
The architecture and capabilities of the underlying ERP platform directly impact scalability, performance and security for the long term.
While each ERP system is customized to business requirements, they invariably consist of some foundational modules:
The sequence of development of these modules can be aligned with organizational priorities or integration dependencies.
Core ERP modules offer end-to-end system capabilities, but every organization needs some degree of customization for its niche processes and workflows. An example may be a pharmaceutical company that requires certain functionality to manage clinical trials or traceability across batches. In a new market, a retailer must make localized extensions to comply with country-specific tax laws and compliance needs. A manufacturing unit that wants to modernize its systems may have to migrate its complex strategic, bespoke business processes from its legacy platform to the new ERP.
Modern ERP app development accelerators and platforms make developing these kinds of localized extensions and custom modules easy. Business users and admins can use low-code configuration tools to tweak a workflow or build a new report without extensive coding. Robust ERP APIs enable development teams to create custom interfaces, automation, analytics and even machine learning capabilities. The end-to-end digital ecosystem also needs tight integration with complementary systems.
ERP platforms provide robust integration middleware, data services and messaging queues to link with external eCommerce apps, payment gateways, shipping systems and more. With a well-designed core platform, the possibilities for customization and extension are endless.
Beyond backend capabilities, the value of an ERP lies in driving user adoption across the organization. Intuitive, responsive and attractive interfaces are thus critical, including:
Information Design – Organize workflows, approvals and data access aligned to user personas
Testing an ERP system is rigorous, with end-to-end testing across modules before going live. Functional testing ensures that every workflow, calculation, reporting engine, and integration is working as per specifications. Even the most complex, real-world business scenarios are verified by dedicated QA professionals by creating test cases. Navigation flows, ease of use, cosmetic appeal, and conformity to requirements should be reviewed by user acceptance testing panels consisting of department heads.
It gives us a chance to see performance benchmarks and stability and predict how the system will behave when under peak traffic volumes. Security testing will audit role based access rules, encryption levels, sign on protocols and other authentication controls against security best practices. Regular regression testing makes sure that bug fixes and new features added over time do not break existing functionalities.
Test automation allows QA to spend their time on the things that can’t be scripted, freeing up time that would otherwise be spent doing the same thing over and over again. With iterative testing, documentation and fixes across the development of ERP systems, organizations can ensure ERP solutions deliver the durability, efficiency and adoption required for ROI.
Developing an extensive ERP system from the ground up is complex but transformational for competitive growth. With careful planning, expert teams, proven methodologies and sustained commitment – organizations of any size can build custom or hybrid ERP platforms tuned to their strategic objectives. Beyond just enabling operational excellence, data-driven ERP systems form the digital foundation for continued innovation.
