Last updated on October 11th, 2024 at 04:17 am
Enterprise Resource Planning (ERP) has expanded from just a business tool to a key asset for companies of all sizes. ERP connects various departments and functions into one system that enables smooth operations, improves decision-making, and boosts business growth. However, setting up an ERP system is complex and needs careful planning and expertise. In this guide, you’ll learn about ERP software development services and a step-by-step plan for businesses looking to use this powerful technology. We’ll cover everything from identifying your business needs to the final implementation stage and ongoing support.
Whether you’re an entrepreneur and new to ERP systems or an IT professional aiming to improve your development process, this blog provides you with useful insights and best practices. Let’s explore how ERP software development services can transform your business!
What is ERP Software Development?
The ERP Software is specially designed to boost efficiency by providing a central database for all business information. ERP software development helps to manage different business functions like human resources, finance, supply chain management, and customer relationships in one platform. ERP software development also enhances decision-making and improves operational efficiency. This approach enables businesses to run more smoothly, make accurate decisions, and grow potentially.
The process involves analyzing business requirements, designing the system, coding the software, testing it, and implementing it. This system also provides ongoing support to ensure it meets the company’s specific needs. ERP software development services can be tailored to fit the specific needs of businesses and can add a variety of features. You may choose off-the-shelf solutions. The goal of ERP software development is to design a system that handles all the aspects of business i.e. from accounting to logistics to sales and marketing effectively.
As start-ups focus on operational efficiency and transparency, the demand for ERP software development is growing rapidly. As per the research, the ERP software market reached $54.76 billion in 2022 and is expected to grow at a rate of 11.0% annually from 2022 to 2030 year. Also, the requirement for the administrative department has been reduced by ERP software and cut the cost by up to 22%.
ERP Market Overview
In recent years, enterprise resource planning (ERP) system and their domain are no longer just for large multinational companies. Nowadays, all sizes of businesses need an effective system to handle their daily operations and track their products and projects. According to a report by Fortune Business Insights, the global ERP software market is predicted to increase from $81.15 billion in 2024 to $238.79 billion in 2032, growing at a CAGR of 14.4%.
eBizneeds has developed a yearly ERP system comparison to analyze how the ERP market is expanding and how diverse ERP systems perform.
| Year | Top Industry | ERP Market Revenue | Annual Company Budget | Business Process Management (BPM) Focus | Top Reasons to Implement | |
| 2018 | Manufacturing, Distribution | $93.4 B | 36% stayed on budget | 49% improved most processes | Organization issues | |
| 2019 | Manufacturing, Information Technology |
| 55% stayed on budget | 30% improved most processes | Organization issues | |
| 2020 | Manufacturing, Information Technology | $94.71 B | 62% stayed on budget | 37% improved most processes | Organization issues | |
| 2021 | Manufacturing, Information Technology | $95.37 B | 64% stayed on budget | 50% improved most processes | Real-time data access | |
| 2022 | Manufacturing, Information Technology, Marketplaces | $96.04 B | 40% stayed on budget | 55% improved most processes | Real-time data access, Cost-effective legacy |
Advantages of ERP Software
For the past years, ERP systems have significantly transferred business planning processes. Businesses of all sizes have managed to save 20% pm their company budgets. All thanks to ERP software. Let’s explore the benefits a company gains by adopting an ERP system.
Optimizing Business Processes
Business process optimization helps large and mid-sized companies save time and cost. Through ERP systems, businesses can automate daily tasks through HR, supply chain management, and inventory modules. It also reduced routine paperwork and reduced human errors.
Access to Real-Time Data
Implementing the ERP system into daily work can help to make better decisions with constant reports and constant reports and real-time data. Companies can access reliable information timely through ERP software.
Enhance Business Collaboration
Collaboration between business partners allows for the exchange of information among all the participants which ensures a strong partnership. Many multinational companies have expanded cooperation productivity by 30% with ERP software.
Savings on Legacy Support Costs
If a company requires support for older business processes, an ERP system can offer benefits in it. For instance, an ERP system keeps all records about a product’s uniqueness and makes it easy to protect the product. Also prove it was the first or unique in the market. In 2021, more than 65% of small businesses benefited from using ERP legacy services.
Better Work Performance
In multinational companies, unnecessary operations can add up quickly. An ERP system can help by using AI and business intelligence to analyze business needs. Through ERP software development, businesses can prioritize important tasks which can save time and resources.
Must-have Features and Modules of Custom ERP Software
Developing ERP software is a complex that needs careful planning and implementation. For an ERP system to work well, it must include various essential features that support businesses of all sizes. These businesses should encompass strong reporting tools and smooth integration with other different business apps. Considering these features for ERP software development helps to grow your business. By adding this feature in ERP software, businesses can ensure their system is effective and support their continued growth and success.
Financial management
A strong financial management module is key in ERP software to streamline financial processes and make accurate reports. This must include features like accounts payable and receivable, financial reporting, and general ledger. Moreover, it can also manage multi-currency transactions, budgeting, and tax calculations.
Inventory management
For businesses to deal with physical goods, effective management plays a great role in generating revenue. ERP software development should offer real-time inventory tracking, forecasting, and automated ordering to efficiently manage inventory.
Customer relationship management (CRM)
Quality ERP systems should include a strong CRM module to help businesses manage customer relationship management. This should offer features for transparent communication that enable businesses to quickly solve queries and complaints.
Contact management
Contact management is a key part of a good CRM module. This feature enables organizations to store and handle customer information like purchase history and contact details. With this information, businesses can know the needs of customers and offer services accordingly.
Lead and Opportunity Tracking
The other essential feature of the CRM module is lead and opportunity tracking. This helps businesses follow the sales leads from the first contact to final sales. It also offers insights into customer behaviors and their preferences. So companies can customize their services to better meet customer requirements.
Customer service and support
This is also a required feature of ERP software which helps businesses to handle customer inquiries and complaints efficiently. This opens a way for customers to ask questions, report issues, and receive quick reviews. With this feature, businesses can provide flawless customer service to their customers. Also, it helps to build trust and loyalty and encourages them to shop more.
Human Resource Management (HRM)
Businesses are expanding so it becomes tough to handle employees. The main reason behind ERP software should include an HRM module is to handle all the staff more efficiently. This module covers features such as employee data management, time tracking, payroll, and benefits administration.
Supply Chain Management (SCM)
SCM should be also an essential part of ERP software that helps to track inventory, maintain the relationship with suppliers, and manage orders. Tracking inventory is also an essential feature in ERP software development.
- Accurate inventory tracking allows you to understand when to order more supplies. This avoids excess inventory and stockouts. ERP System with an SCM module allows you to check inventory levels in real-time so you can make better decisions regarding reordering.
- Whereas, order management features enable businesses to handle orders more efficiently. Also, you can track the order and their relatable details like order placing data and delivery address. Also, the system will allow us to track whether the order shipped order is correct or not. This module also sends the information about the order’s status to its customer.
- Finally, a strong SCM module must have the tools for Supplier relationship management. These tools help you to make good connections with suppliers that can lead to better prices, higher quality products, and quicker delivery. Even with this module, you can monitor supplier performance, communicate with them, and negotiate better deals. Centralizing all supplier information in one system helps save costs and improve your ERP software.
Business Intelligence (BI) and Reporting
ERP System with strong BI and reporting features allows you to understand your operation better and lets you make accurate decisions. You can create reports on important metrics like sales, inventory, and financial performance to evaluate how your business is doing. Being able to generate these reports within the ERP system can save both time and money.
Integration
Connecting with the ERP system with other software applications is a key feature that boosts its functionality and value. Integration is essential because it helps businesses take advantage of the other software they use every day.
Mobile App Solution
In today’s era, being able to access essential data and functions on the go is crucial. That’s why having an ERP system with mobile access is important for all sizes of business that wants to stand out from competition. The flexibility allows employees to work more efficiently since they’re not stuck at their desks or laptops.
For mobile access, there are two main choices i.e. a web-based interface or a mobile app. The web-based interface can be used through a mobile browser. This provides the same features as the desktop version of the ERP software. Employees can use the ERP application from any device connected to the internet without requiring extra software.
A mobile ERP app can be installed or downloaded on smartphones or tablets that offer a smoother experience. Despite this, the mobile application is essential for modern ERP systems as it allows employees access to important data. And also provides features on the go which boosts productivity and keeps your business competitive.
ERP Software Development Process: 5 Steps
Wondering about creating an ERP software development? If you have a unique idea for ERP Software Development, then the expert team at eBizneeds can turn your vision into reality. ERP software development services usually includes several important steps to create and implement a customized ERP system successfully. Here are 5 steps in this process.
Business Analysis
The first step is to collect detailed information by learning about the organization’s business procedure, workflow, and specific requirements. This involves close collaboration with stakeholders, department leaders, and end-users. Business analysis should be conducted to know the issues they face, what challenges they have, and what results they want. These steps help in defining the scope of the ERP system and documenting clear and thorough requirements.
System Design and Planning
The next step involves ERP software designing and planning the ERP software development. The development team designs a system that outlines the modules, features, and functions of the ERP depending on the collected requirements. This step also includes specifying technical details such as necessary hardware, database, software, and how the system will connect with other software.
Development and Customization
Once the system’s design is ready, the reliable ERP software development company starts building the ERP system. Development starts with writing code, creating necessary modules, and customizing the software to meet the company’s requirements. This includes setting up workflow, data structure, user interface, and integration features based on the design plan.
Testing and Quality Assurance
After the development phase is done, thorough testing is conducted to streamline the ERP system. This includes finding bugs or performance issues and fixing them to make sure the ERP software runs smoothly and securely.
Deployment and Training
After the successful testing, the ERP system is deployed in the real work environment. This essential step includes installing the software, setting up the configuration, and transferring data from the existing system.
Moreover, training sessions are organized to help users get accustomed to the new software. This ensures a smooth transition across the organization. Keep in mind that ERP software development is not a time task.
After the system is deployed then continuous maintenance, updates, and support are needed. This is done to complete business needs and match the industry standards & technology.
Note: – By following these steps, organizations can effectively implement ERP software to improve operations, boost productivity, and drive accurate decision-making.
How Much Does It Cost to Develop a Custom ERP Software?
The majority of firms are concerned about how much it costs to create a successful ERP Software. Before a deep discussion related to cost, you should know that the price of ERP software development varies based on various factors. This includes the size of the company, number of features, development team, experience of developers, and so on.
Generally, the cost of developing ERP software may range between $30,000 to $350,000, or go higher in many cases. This is an estimated cost as the factors like implementation cost and the location of the development company can affect the final price.
If you get an idea about the potential cost and pricing models for ERP software pay attention to the key aspects of the process i.e. ERP software. Implementation is crucial for integrating the system into daily business operations. It plays a great role in determining the overall cost of ERP software. To illustrate the impact of various factors on costs we have the graph showing their influence.
How to Choose a Custom ERP Software Development Company?
It’s crucial to select a trustworthy ERP Software Development Company that can offer the best solutions and results you need for your business’s success. With many options out there, it’s essential to do thorough research and consider these factors.
Identify Your Requirements
Firstly, it’s essential to identify your needs and requirements before searching for an ERP software development company. Some of the factors should be taken into consideration. This includes budget, timeline, and the specific features and functionalities you require from your ERP software.
Seek Experience and Expertise
Experience and expertise are vital in ERP software development. Choose an outsourcing company with a strong track record of delivering top-notch ERP software development services. Make sure that the company has experience with similar projects as this means they understand your needs and can offer effective solutions.
Review References and Feedback
Before selecting an ERP software development company, check references and view feedback from previous clients. You can also request case studies of their past ERP projects to know their capabilities and skills.
Assess Communication and Collaboration Skills
Good communication and teamwork are essential for successful ERP software development outsourcing. You should select a company with a transparent communication process and effective collaboration tools to work well with your team.
Check Technical Proficiency
ERP software development needs high technical proficiency. Before choosing the company, make sure they have a team of experienced developers in the specific technologies, who can complete your project requirements.
Evaluate Project Management Approach
Successful Dynamics ERP development requires effective project management. Make sure that the company provides clear timelines, milestones, and deliverables. This also has a process for handling challenges during development.
Analyze Pricing and Contract Terms
Always look out for the pricing and contract terms of the company. Hire a company that has transparent and competitive pricing, clear contract terms, and a well-defined scope of work to protect your interest.
Our Expertise
Our ERP software development services start with understanding the needs of clients, workflows, and challenges. We work closely and maintain transparent communication procedures with your company to gather requirements and analyze your specific needs.
After ERP software development, we offer full support to ensure a smooth transition and successful implementation. Partnering with us for custom ERP software development services provides you with a strategic edge. It makes business procedures smoother, boosts efficiency, and extracts valuable insights.
Conclusion
Choosing the right ERP software development company is a vital decision that can greatly affect your business’s success. Find out the industry experience, ability to customize, project management skills, and integration capabilities to get a good match for your needs.
A strong successful ERP implementation isn’t just about the technology, it’s about finding a partner who understands your business goals. Or they can provide a solution that boosts growth and efficiency.
FAQs
Developing ERP software includes various steps that are mentioned below:-
Define what you need
Pick the right technology
Design and create a basic version of your app
Test your app
Gather and review users’ early feedback
Find a trustworthy software development consulting partner to help launch and promote your app.
Usually, the cost of ERP software development may range between $30,000 to $350,000. The exact cost varies based on various factors such as the location of the development team, their experience, scope of work, features, functionality, and many more. If you decide to choose ERP software development services from India then it may cost you less as compared to hiring services from the United States.
ERP software is a helpful strategic tool for improving business operations in all sizes of companies. This system aims to create a better work environment.
A few of the advantages of using an ERP system are higher productivity, smoother workflow, and improved data.
ERP software is beneficial for business in several ways. This helps your business run smoother by managing essential processes more effectively. It also gives insight into essential metrics such as inventory, and sales and supports your growth and expansion.
Several essential features of the ERP system include:-
Inventory management
Customer relationship management (CRM)
Financial management, human resource management
Supply chain management
Customizations
Mobile access
business intelligence and reporting
If want to choose the right ERP system for your business then it involves:-
Identifying your requirements
Knowing your needs and key features
Determining your budget
Timeframe
Reviewing potential vendors
Development teams
To measure the success of the ERP system, track key metrics such as productivity, profitability, and efficiency. You should also check user satisfaction and return on investment (ROI).
Generally, the cost of developing ERP software may range between $30,000 to $350,000, or go higher in many cases. This is an estimated cost as the factors like implementation cost and the location of the development company can affect the final price.
Naveen Khanna is the CEO of eBizneeds, a company renowned for its bespoke web and mobile app development. By delivering high-end modern solutions all over the globe, Naveen takes pleasure in sharing his rich experiences and views on emerging technological trends. He has worked in many domains, from education, entertainment, banking, manufacturing, healthcare, and real estate, sharing rich experience in delivering innovative solutions.