In today’s digital world, businesses are more complex than ever, and managing them isn’t that easy anymore. And a company's growth is determined by its ability to manage its operations and activities efficiently.
ERP Application Development
This article will give an overview of ERP application development and how it can help your business. One way to ensure a business operates smoothly is by implementing Enterprise Resource Planning (ERP) software - an essential tool businesses use to manage their operations, finances, and resources effectively.
ERP Overview: Benefits and Drawbacks
Enterprise Resource Planning (ERP) is an integrated platform businesses use to manage large amounts of production, supply chain, human resources, procurement, manufacturing, accounting, and financial data in real-time.
The ERP software aims to develop a scalable business solution, integrating management functionalities to enhance the data-driven decision-making of a company.
Besides, according to a recent report from Allied Market Research, the global ERP market is expected to attain a CAGR of 10% and will be valued at $117.09 billion by 2030. Another report from Grand View Research suggests that the ERP market size will expand at a CAGR of 11% between 2023 and 2030. Statista states that the expected revenue of ERP systems by 2027 will be $60.47 Billion at 5.24% CAGR.
Given the reports from different trusted market research companies, it won’t be wrong to assume that more and more companies will adopt ERPs sooner than later.
Read: Enterprise Application Development: Features, Types, Benefits and Cost
But should your company invest in ERP systems? Before answering this question, let’s look at the pros and cons of ERP software.
Benefits of ERP System
Some benefits of an ERP system are as follows:
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Productivity:
With ERP, businesses can automate repetitive tasks and processes, saving time and effort. It also helps in eliminating errors and duplication of data. In return, employees can focus on other paramount tasks.
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Collaboration:
ERPs have a shared database around the organization that contains information about all the departments, reducing communication delays.
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Easy to Learn:
With proper documentation from the development team, the employees can learn how to work on the ERP system quickly and efficiently.
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Data-Driven Decision-Making:
ERP systems provide real-time data view with analysis and reporting to enhance a company's decision-making process.
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Flexibility:
An ERP system's flexibility to expand or reduce according to the company’s requirements on different levels makes it even more beneficial. ERP systems efficiently manage the extension of inventory, increase in production, and addition of new services, functionalities, etc.
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Improved Customer Service:
With the centralized database of an ERP system, businesses can get all the required information on the sales and clients in one place, making it easier for customer support executives and sales managers to communicate with clients and increase customer satisfaction.
Drawbacks of ERP System
Now that you know the benefits of ERP application development, it is time to take a look at the drawbacks that come along with it. A few disadvantages of using ERP systems are as follows:
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The development and implementation of ERP systems can be expensive.
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The success of the ERP system development depends on the developer’s skills and knowledge you will hire. So, make sure to hire proficient developers to avoid failure.
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Developing an ERP system takes a lot of time as developers must create business logic, design, code, and test each layer.
Industries that Need ERP Systems
Most industries exhibit analogous and interlinked operational procedures, including supply chain management, client relations, internal correspondence, financial monitoring, advertising, and production. Therefore, conventional software solutions can be customized to cater to any field.
Read: Top 10 Common ERP Mistakes and How to Avoid Them
Enterprise resource management (ERP) programs have been available in the market for a significant period. These systems are designed to facilitate businesses in managing their daily operations and automating their processes. The beauty of ERP systems is that they can be customized to suit the specific requirements of diverse industries. Let us delve into how they can be utilized in different industries.
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Manufacturing ERP Systems
Among the various industries, manufacturing reaps the most benefits from ERP systems. The complexities of managing different processes, such as production, inventory, supply chain, and logistics, can be mitigated by a well-designed ERP system. The system helps to manage the procurement of raw materials, schedule production, track inventory levels, and streamline the supply chain process.
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Healthcare ERP Systems
Managing the healthcare industry is highly complex due to the different processes and procedures required for providing quality healthcare. Here, ERP systems can help to manage processes more efficiently. A healthcare ERP system can manage patient records, billing, scheduling, inventory management, and clinical operations.
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Hospitality ERP Systems
The hospitality industry is highly demanding and needs quick and efficient services. A well-designed ERP system can manage different hospitality industry processes, such as front office, housekeeping, restaurant, banquet operations, inventory levels, track guest preferences, and streamline the booking process.
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Retail and Wholesale ERP Systems
Retail and wholesale businesses have become increasingly complex due to new technologies and the rise in competition. ERP systems can assist in managing the different processes involved in retail and wholesale, such as inventory management, sales, and customer management. In addition, the system can streamline the entire supply chain process with real-time inventory tracking and automatic order fulfillment.
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Construction ERP Systems
The construction industry requires careful resource management and efficient planning. An ERP system can enable construction businesses to manage the different processes involved in the industry, such as project management, procurement, and subcontractor management. The system can track project progress, manage resources efficiently, and streamline construction.
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Transportation and Logistics ERP Systems
The transportation and logistics industry is one of the most complex industries, with the need for efficient management of different processes. Here, an ERP system can assist in managing transportation scheduling, route planning, and tracking of goods. The system can also manage inventory levels and warehouse operations while streamlining the supply chain process.
Functional ERP Modules
Depending on the budget and needs of a business, an ERP application can have the following modules that help automate the processes and improve workflow efficiency.
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Human Resources
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Production Management
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Finances and Accounting
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Supply Chain Management
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Project Management
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Sales and Marketing
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Data Analytics and BI
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Chatbots for Users
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Document Management
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Knowledge management
Factors to Consider for Successful ERP Implementation
Developing a custom ERP solution is considered one of the most complex tasks requiring many integrated development strategies. But considering the following factors, you can make the ERP implementation in your organization quick and efficient.
Set Your Requirements
Before opting for custom ERP software development, you must set up realistic, clear, and concise expectations to make collaboration with the development team successful.
Choose the Right Technology
Tech stack is the most crucial part of custom ERP application development. Meeting your expectations can be difficult without the right tools and technologies. To help you out, here is a list of a few tech stacks that you can go ahead with
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Front-End: JavaScript, Angular.js, Vue.js, React.js
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Integrations: MySQL, MongoDB, PostgreSQL, Apache Spark, AWS, Azure, Docker, Kubernetes, ElasticSearch, Apache Cassandra, etc.
Make UI/UX a Priority
As ERP applications consist of a lot of user roles, elements, features, charts, navigation, and much more, designing it in a way that is easier to understand and work with is important. Here you need to design the general application wireframes correctly with the help of designers and business analysts.
Create a List of Features
Multiple features can be integrated into the ERP software, including but not limited to business reporting and analysis, automation, finance and accounting, manufacturing, inventory management, supply chain management, and interoperability. So, create a list of only those vital features for your business.
Consider Pricing and Return on Investment
ERP application development comes with multiple pricing schemes. So, knowing how much your business can invest is important to get a custom ERP solution that can deliver value and return on investment.
Make the System Scalable and Integrable
You must ensure that the ERP system you invest in can integrate different business processes and departments while offering scalability to provide data analysis and real-time reporting as required.
Know About Deployment Time
As a business owner, you must know that time is money. So it becomes essential to consider the deployment and integration time a software will take to integrate different features while ensuring it doesn’t increase the business expenses.
ERP Application Development Cost
ERP application development and implementation can cost around $30,000 to $500,000 depending on the modules, features, deployment, integrated tools, testing, maintenance, upgrades, and other requirements your company might have.
Read:E-Learning Web App Development Cost
Although the cost might seem a bit much at first glance, the benefits that ERP brings to the business make it worth it. An ERP system will improve the company's productivity and increase reporting, visualization, and growth while helping in gaining a competitive advantage.
Conclusion
ERP systems are software solutions that aid businesses in managing their operations more efficiently. These systems are highly customizable to meet the specific needs of various industries. Businesses can improve efficiency, increase profitability, and streamline processes by utilizing the right ERP system.
So, if you want to implement an ERP system in your business, contact us, share your requirements, and receive customized quotes to start the development.
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FAQs:
Q1. What is an ERP system?
An ERP system is a software solution designed to assist businesses in managing their operations and automating their day-to-day processes.
Q2. How can ERP systems benefit businesses?
ERP systems can help businesses manage their processes more efficiently, streamline operations, and increase profitability.