Enterprise Resource Planning is a powerful way to facilitate business operations, enhance productivity, and drive growth. ERP development helps create a centralized management platform to handle such critical aspects as supply chain management, finance, HR, etc.
In this article, you’ll learn what developing ERP software is about, what the critical components of an ERP system are, and why you should use one for your business goals.
What is an ERP system
The ERP concept can be described as follows: enterprise resource planning is a software system that helps entrepreneurs run the entire business efficiently by supporting processes and automation in the most significant areas. These areas include finance, services, human resources, procurement, manufacturing, supply chain, etc.
Enterprise resource planning software can be used as a web-based system or a mobile app with features that help manage specific operational processes.
The key modules in ERP system development
ERP systems can contain multiple modules that automate, support and streamline specific business processes. The list goes as follows:
- Finance module — helps automate transactions and secure compliance
- Research, development, and engineering module — helps collect data and stores product design and development tools
- Sales module — helps handle billing, order management, contracts, customer communication, etc.
- Supply chain module — provides inventory and warehouse management tools, ensures smooth organization and optimization of the logistics, etc.
- Manufacturing module — helps ensure your company’s using the latest technologies and insights to produce user-oriented, quality items
- Asset management module — maintains data and functionality in terms of assets and infrastructure used by your company
- Sourcing and procurement module — helps handle all operations related to ordering and purchasing services and goods that ensure effective manufacturing
- Service module — keeps track of all of your company’s components while securing asset supervision and solving customers’ issues
The role of ERP software development in HR
ERP systems play a specifically important role in human resources. They help integrate and automate multiple HR-related processes and help businesses efficiently handle their workforce.
Here’s how you can utilize ERP systems in HR:
- Employee data management: creating centralized employee databases and employee self-service
- Recruitment and onboarding: implementing applicant tracking systems and automating onboarding tasks
- Payroll management: custom ERP software development enables automated payroll processing and compliance management
- Time and attendance management: you can ensure worktime tracking and coordinate leave requests from employees
- Performance management: ERP systems facilitate goal setting and tracking and setting up performance appraisals
- Talent management and development: you can handle employee training and succession planning easier
- Benefits administration: ERP systems ensure easier benefit enrollment and tracking
How to build an ERP system from scratch
Now that you know how developing ERP software can benefit your business, it’s time to discuss the five main steps to creating a minimum viable product for an ERP system.
1. Pre-production stage
Before planning the development process, you must clearly define the business needs an ERP web app should satisfy and who can build such a system for you. After that, you can start researching the market and your competitors to see how your product can stand out and be more beneficial to your target audience.
Next, plan out the components you want to add to your ERP. Select the must-have features for each module — they must be tailored to your business needs. Once you get a general image of an ERP system, you can sketch a product design and develop the UI/UX elements for your future product.
2. Tech stack selection
To develop a high-quality, usable, and efficient ERP app, you should pick a proper toolkit.
Cloud technologies
Cloud-based ERP systems are now a must for every aspiring digital business. Choose a cloud computing service that fully meets your needs. Your team’s tech lead should be skilled in software architecture and DevOps to handle any cloud-related questions and make critical tech choices.
Some of the best cloud computing providers you may consider include:
Programming language
For custom ERP development, you can use JavaScript as a universal web language. Its frameworks like React, Vue, and Angular are a great fit for front-end development, while Node.js would fit perfectly to facilitate all server-side development needs.
Database
The database you choose will define how your system uses and stores data. Relational/SQL databases better fit small companies that need standardization. NoSQL (non-relational) databases work best for complex data infrastructures as they enable data storage in multiple manageable formats like JSON.
Extensions
To streamline ERP development and promptly deliver key features to users, use the following third-party integrations and extensions:
- Google, LinkedIn, or Facebook API for quick sign-in and log-in
- eCommerce integrations like Shopify to boost the sales module
- Business intelligence tools such as Power BI or Tableau
- HR module boosters like Breezy HR
3. ERP software development stage
Once you’ve defined all the goals, selected the necessary tools, picked all the desired features, and have a ready-made product design, you can actually start the development process. It typically takes 6 to 12 months to develop an ERP system MVP. However, the timing may change depending on the scope of work, your team size, and whether you make any changes to the product design or functionality on the go.
4. ERP system testing stage
Software development and testing take place simultaneously. As soon as you have a piece of code or working functionality from the development team, the QA specialists need to test it right away.
Here’s what you should include in the testing process:
- Keeping the system aligned with the initial integration, security, and functionality requirements.
- Performing different types of operations within different modules to check the system’s functionality.
- Calculating the accuracy of the returning results.
You may also involve focus groups to run beta tests for dedicated modules. Asking your employees to use the modules and collecting their feedback would work, too.
5. Feedback analysis
As soon as your app goes live and reaches your team, the target audience, or beta users, start gathering the initial feedback and make sure to solve any emerging problems promptly. Ask if users like your app and what seems challenging about using it. Gathering user feedback will help improve your app and make it even more useful to others.
Final thoughts
Creating an ERP system for your business is one of the major keys to its success. This is a perfect solution for both newly emerging startups and steadily growing enterprises that want to enhance their operations and boost efficiency.
Define the key modules your business might need to improve and develop a custom ERP system to handle these processes easily and smoothly.