A Step-by-Step Guide to Build an ERP System for Business

Need a custom ERP system for your business? Learn to build it from scratch in 5 simple steps with our comprehensive guide.

Updated 21 August 2024

Twinkle Kalkandha
Twinkle Kalkandha

Head of Marketing at Appventurez

In order to ensure your organization runs smoothly and efficiently, it is vital to build a strong connection between the distinct departments working for the same goal: the growth of the organization. Whether it’s the sales, accounting, web development, HR, customer support, or procurement department, everyone should be connected for hassle-free communication in one place. This is when the need for an ERP System in an organization occurs.

ERP stands for Enterprise Resource Planning, which permits the members of an organization to connect through a single channel and share data securely. If there is a smooth conversation and sharing of ideas between the different departments of the organization, it will be easier to make a strategy by keeping in mind each department’s perspective, and the implementation of plans will be smooth out. One can build an ERP system from scratch with the help of Software development solutions for their organization sharing their particular needs.

The following sections will help you better understand different aspects of ERP systems, such as why they are important to implement in an organization, their key features, available ERPs in the market, and the concept of customizing an ERP system just for your organization.

 

Uses of ERP system

Source: Noetic-labs.com

Why is an ERP System important for the organization?

You might wonder why a business should invest in a separate system for communicating between internal teams. Why not use the existing mediums to share information and data to manage the work? When we choose to build an ERP System, particularly for the internal departments, we ease the flow of details and any conversation needed to help between the separate teams. Along with that, the functionality of the business improves.

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According to a study conducted by Statistica, it is expected that the ERP system will generate a total revenue of US$53.15bn in 2024. So, with the improving technologies and the introduction of new business models, it is a must to implement these in your organization as well.

Now, take a look at the segment below to get a detailed view of the importance of an ERP system in any business.

ERP Image 01

 Enhance Efficiency & Productivity

Any organization will want to enhance efficiency and productivity overall in their workplace. Implementing an ERP system will reduce the time spent on repetitive manual tasks, such as filling data on multiple platforms.

The ERP Solution in any business organizes the data on a single platform, which helps to create a better flow of information among the teams. The deduction of manual effort on less important tasks will allow the organization to focus on making strategies and work towards achieving the set goal. 

Better Collaboration

When there is clear communication within an organization, it will be easier for the teams to collaborate with each other. As the same data is available on a single platform and can be accessed by the required users, coordination will be simplified, resulting in better collaboration.

Cost Effective

It is true that a business needs to bear the cost of building an ERP system; however, it is a future investment that will reduce further costs. When a business runs smoothly, teams collaborate with each other efficiently, and the manual work is reduced, the overall cost of sharing information on various platforms and the time and effort of training the employees will be reduced. 

Better Analytics

The information on the ERP System is organized and improves the monitoring of the required data. It gives a better insight into the performance of a plan or strategy and makes a simple report to view and analyze.

Quick Decision Making

As the ERP solution manages the information, facilitates communication, and provides real-time analysis, it is easier to make quick decisions on a particular aspect. By reviewing the performance and analyzing the data, informed decisions can be made.

Improved Customer Service

When there is an organized platform where customer inquiries, requirements, deliveries, and other associated data can be monitored by the designated team, providing the solution and fulfilling the requirement will be quick and can improve the customer experience with the business. 

What are the Available ERPs in the market?

The ERP sector incorporates a wide range of software solutions designed by experts to help businesses manage their internal teams and vital data in one place. Several ERP systems are available for investment in the market. One can choose to invest in software depending on the required features and its capabilities. Additionally, an organization can choose to customize its own ERP system to cater to their needs.

List of a few top ERPs available in today’s market

  • SAP
  • Microsoft Dynamics 365
  • Epicor
  • Oracle
  • Infor 
  • Sage

Why should you customize your own ERP system?

There is no doubt that a number of the best ERP software are already available in the market, and amidst that, it is usual to think about why you must choose to customize your own. Keep in mind that each organization has different requirements and specifications, and it can be a bit hard to find the existing ERP solutions in the market.

Therefore, it is suggested that an organization should build its own ERP software by focusing on internal elements like the size of the organization, industry-specific requirements, infrastructure, and business modules. By choosing one of the existing ERPs, there can be many drawbacks and not guaranteed results. So, keep in mind that you should infuse the specifications into your own ERP to get better results.

Key Considerations for Building an ERP System

When initiating to building an ERP System from scratch, there are a few points an organization must consider, so that any step should not miss from the procedure and things can work according to the specific requirements. Here is a brief of the key considerations when stepping up for the building of an ERP system.

  • Identify your Business Needs: Before investing in ERP software, it is very important to understand your business needs, considering the strength of the employees and the distinctive requirements of each department. This step will help you better analyze the needs and guide you in getting the solution through ERP development.  
  • Picking the right technology: Technology highly impacts the usage of the software, so it is important to pick the right kind of Tech stack for the development of the ERP system. The Tech Stack is responsible for the functionality. 
  • Customization or Standardization: There are two choices any business has: either they can invest in the customization of the ERP System or standardization of the same. 
  • Data Migration and Integration: When introducing an ERP system fresh to the business, it is essential to transfer the existing data securely and integrate it with other required software. This will increase the flow of data in all of the departments, and the manual work will be reduced in the future. 
  • Implementation: A smooth implementation is very much needed in an organization, which consists of training the employees on the new software launched and modifying the management system.

What are the Steps to Build an ERP System?

Building an Enterprise Resource Planning (ERP) system involves many stages, including planning what features are needed, designing, developing, and testing.

ERP Image 02

Step 1: Analyze your requirements and set goals

It is best to first coordinate with all the departments of the organization to analyze the specific requirements and set the goals depending on the same. When the requirements are known, it will be easier to set goals for building the ERP System.

Step 2: Choose UI/UX Design

To streamline the building of the ERP System, it is essential to begin by choosing the desirable UI/UX design. The design must be in favor of the users so that they can utilize the software without any trouble and the flow of the data is easy. You can get expert help on the UI/UX designing of your ERP software that ensures a smooth interface for the users.

Step 3: Select a suitable Tech Stack

The Technology Stack is an important element in developing any software or application. It includes the programming languages, front-end and back-end, frameworks, and overall construction of the software. So, according to the business requirements, a suitable tech stack should be selected.

Step 4: Developing the Product

Once the plan has been mapped as the UI/UX design has been picked along with which tech stack to use, it will be time to develop the final product. The software must be incorporated with each feature, which is essential for your team to get a simplified view of all the necessary data.

Step 5: Test the Final Product

After getting the product according to your shared specifications, it will be time to test the final product to ensure everything is working smoothly. If there are any bugs, they can be fixed before being introduced to the organization.

Factors to Consider for ERP Implementation

Implementing a new system in an organization can be complex if some measures are neglected. To ensure a smooth implementation, the aspects that should be considered are briefed below.

1. A Strong Support System

It is vital to maintain a strong support system in the organization when implementing the ERP system. A support team is required so that they can assist the employees with the software technicalities and

provide training on the user interface.

2. Involvement of all the departments

A business cannot run properly without the full involvement of all the existing departments and teams. When implementing an ERP Project at the organization, it is best to get reviews and feedback from all the users so that any required modifications can be made.

3. Setting a Realistic Timeline

At the start you should break the whole program into small features and allocate sufficient time for each feature so that you can get a good idea of the timeline of the project. You should always develop a realistic project plan with clear milestones and timelines And also save some time for regression also so that you can also ensure the quality of your product.

4. Set a realistic budget

For the ERP implementation, a realistic budget should be set that should consist of all the required expenses. Setting a budget will help to work smartly on the project to achieve the goal. While implementing the ERP program, you must consider the different costs of software, hardware, and implementation services. Determining and allocating the right costs for each of these will help you constitute a realistic budget.

5. Risk Management

While developing an ERP Program, you should also identify potential risks and develop strategies to counter them. Set aside some time after the development of each feature for some regression so that we can be sure of delivering code quality and reduce the count of code breaks/program failures later on.

How can Appventurez help you create an ERP system?

The ever-evolving technologies have transformed the way we store data and the effectiveness of communication in the internal teams of an organization. With the help of our experts, you will be able to recognize the needs of your organization and build an ERP system revolving around it. 

Appventurez understands how critical it is to infuse each and every required feature into an organization, whether on the HR team, finance sector, sales, or customer support department. When you connect with the professionals at our organization, you will get a thorough understanding of the concept of building an ERP System and the procedure. 

FAQs

Q. Which programming language is used in ERP?

There are a few programming languages that can be used for the creation of an ERP system for an organization. Some of the common programming languages used in ERP software are Java, C#, JavaScript, .NET, and Python.

Q. What is the cost of building an ERP system?

The cost of building an ERP system varies depending on the size and sector of the business and the inclusion of functions. Small businesses can expect to spend an average of $40,000. For the mid-sized businesses, the cost ranges from $150,000 to $750,000. For large businesses, it can go above a million.

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    Twinkle Kalkandha
    Twinkle Kalkandha

    Head of Marketing at Appventurez

    Twinkle Kalkandha is a seasoned digital marketing professional with 8+ years of experience. As a Head of Marketing, she oversees the website content, creates strategies for social media campaigns, and works towards generating leads through organic channels.