Most companies want to gain more profit, decrease costs, and improve their internal processes. They start to grow and reach a point where manual resource planning in Excel spreadsheets is no longer enough. To handle such massive workloads, you need to make an ERP system (Enterprise Resource Planning).
According to a 2018 survey, 95% of businesses that implemented ERP systems improved their business processes. The top three benefits companies said they gained after implementing an ERP system are reduced process time, improved collaboration, and a centralized data system. A Hubspot report from 2020 says that 93% of businesses that implemented ERP projects considered them a success.
As we can see, ERP systems benefit growing companies a lot. However, there are also a lot of questions:
It can be a web-based system or a mobile app with features that manage specific operational processes — sales, inventory management, logistics management, accounting, human resources, and more.
An ERP system will be useful for your company in the cases below.
⚫️ You have too many manual processes. Manual processes are time-consuming and lead to mistakes. To increase the efficiency of your employees, and make the company grow, you need automation — and that’s what an ERP can help you with.
⚫️ Current solutions are not enough. In the early stages, your company might be content with simple software, but with time, you’ve outgrown these technologies and now they slow your company down.
⚫️ There’s poor collaboration between teams. If departments in your company still use different databases and software, it can really complicate the communication between them. With ERP, the company will have a single database, departments will have access to the needed information, and will collaborate more effectively.
⚪️ On-premise ERP — a system that’s installed on the company’s servers and computers and can only be accessed from them. It brings benefits like advanced security but requires the company to have additional resources for maintenance. Microsoft Dynamics GP and Acumatica are examples of on-premise ERP systems.
⚪️ Hybrid ERP — it’s a combination of two first types. Companies can store important data on their servers to keep it absolutely secured, and store other data on a cloud to use less internal resources.
With custom ERP app development, you get a system that has only those features that you need, so you pay exactly for what you’ll use in daily business operations. While out-of-the-box solutions might charge you for features you don’t actually need. Moreover, if your business needs change, you’ll be able to adjust the custom solution to the changes, while out-of-the-box solutions can only address short-term objectives.
The development team will provide you with ongoing support and help you fix any appearing issues. In addition, you will get a highly secured system, since it won’t be controlled by a third party.
The only two disadvantages custom software development has are costs and timeline. When you make something from scratch, it costs much more than a ready-made solution, and takes its time. Speaking about long-term goals, custom development is a wiser approach.
According to a 2018 survey, 95% of businesses that implemented ERP systems improved their business processes. The top three benefits companies said they gained after implementing an ERP system are reduced process time, improved collaboration, and a centralized data system. A Hubspot report from 2020 says that 93% of businesses that implemented ERP projects considered them a success.
As we can see, ERP systems benefit growing companies a lot. However, there are also a lot of questions:
🔴 What exactly is an ERP system?
🔴 How to know if a company needs one?
🔴 How to make an ERP system?
🔴 Is it better to implement an existing solution?
Let’s figure it out.What is an ERP system and who needs it?
ERP is a software that compiles and analyzes a company’s data to make its departments interact smoothly. To put it short, ERP is a business management tool.It can be a web-based system or a mobile app with features that manage specific operational processes — sales, inventory management, logistics management, accounting, human resources, and more.
An ERP system will be useful for your company in the cases below.
⚫️ You have too many manual processes. Manual processes are time-consuming and lead to mistakes. To increase the efficiency of your employees, and make the company grow, you need automation — and that’s what an ERP can help you with.
⚫️ Current solutions are not enough. In the early stages, your company might be content with simple software, but with time, you’ve outgrown these technologies and now they slow your company down.
⚫️ There’s poor collaboration between teams. If departments in your company still use different databases and software, it can really complicate the communication between them. With ERP, the company will have a single database, departments will have access to the needed information, and will collaborate more effectively.
Is ERP similar to CRM?
Both types of software help businesses to improve their processes. But CRM is focused only on relationships with existing and potential customers, while ERP is focused on every aspect of a company’s operation. Basically, CRM systems help to boost sales, and ERP systems help to reduce costs. How to choose which one do you need? Well, you don’t have to since it’s possible to make a mix of them, and integrate the CRM feature into an ERP system. Voilà.Types of ERP systems
⚪️ Cloud ERP — software that exists in a cloud environment and lets a company access its data from any device connected to the Internet. Most existing ERP systems are cloud-based: NetSuite, SAP, Sage X3.⚪️ On-premise ERP — a system that’s installed on the company’s servers and computers and can only be accessed from them. It brings benefits like advanced security but requires the company to have additional resources for maintenance. Microsoft Dynamics GP and Acumatica are examples of on-premise ERP systems.
⚪️ Hybrid ERP — it’s a combination of two first types. Companies can store important data on their servers to keep it absolutely secured, and store other data on a cloud to use less internal resources.
Custom ERP app development VS ready-made solutions
Although it’s possible to use out-of-the-box ERP solutions such as NetSuite, most enterprises build custom ERP systems tailored to their business. The thing is, existing software doesn’t always cater to specific business needs.With custom ERP app development, you get a system that has only those features that you need, so you pay exactly for what you’ll use in daily business operations. While out-of-the-box solutions might charge you for features you don’t actually need. Moreover, if your business needs change, you’ll be able to adjust the custom solution to the changes, while out-of-the-box solutions can only address short-term objectives.
The development team will provide you with ongoing support and help you fix any appearing issues. In addition, you will get a highly secured system, since it won’t be controlled by a third party.
The only two disadvantages custom software development has are costs and timeline. When you make something from scratch, it costs much more than a ready-made solution, and takes its time. Speaking about long-term goals, custom development is a wiser approach.
At Brivian, we can make an ERP system as custom as you wish. To get a precise estimation of costs and development time, fill in the form either at the bottom of this page or here.
ERP system implementation cases
❗️ Amazon
Amazon began using an ERP system in 2008 after the company realized they couldn’t meet long-term goals with the previously used software. Amazon has implemented a number of features for business processes like order management, finances, human resources, purchasing, and inventory control.❗️ Ikea
Ikea once turned to custom ERP app development and didn’t regret it. Now they have a system that helps walk-in customers go through the product catalogs right in the store from a tablet panel. The solution also allows Ikea to use customers’ personal information for promotions.❗️ Toyota
The company wanted to expand and offer high-quality services. They needed to improve operational management accuracy, create a paperless system, reduce working hours, and increase efficiency. Toyota chose an ERP system that helps to manage the service skills and operations of distributors offering their products to clients all over the world.❗️ LG electronics
The company has a huge number of employees worldwide, so it was difficult for them to adapt HR functionalities — they lacked transparency and the cost of maintenance was going over the top. Moreover, the number of manual processes was only growing, they weren’t utilizing resources properly, and were having problems with efficiency. This is what led LG to turn to an ERP solution. Over five years, the company managed to reach its goals and minimize the challenges. They improved transparency, minimized maintenance costs, improved decision-making processes and HR efficiency, and more.Key features to make an ERP system
Of course, the feature set of your future ERP depends on your business needs, internal processes, and overall goals. But let’s take a look at ERP software development trends and typical modules that these systems usually have.❕ CRM module
As we’ve already said, you can add a CRM module to your ERP system. Such a module will gather customers’ preferences, track their orders, and create profiles for purchasing. It can help you to increase sales performance, improve service and relationships with clients.❕ Finance and accounting module
The data of these departments is critically important and must be managed very carefully. That’s why it’s so useful to have all the data in a single location — you can track and analyze it simply and avoid errors. With the finance and accounting module, companies can easily manage cash, bank, currency operations, bookings, closing of accounts, VAT reporting, inventory assessments, and more.❕ Inventory module
With this module, a company can track the stock of products identified by unique numbers, trace their location in the facilities, and maintain the stock in warehouses. It can include features like inventory control, stock utilization reporting, ace units, and so on.❕ Supply chain management module
Such modules are extremely useful for companies that interact with different suppliers and stakeholders throughout the production process. The SCM module makes the communication much easier because everything is trackable and transparent. The module allows companies to optimize the supply chain and control the flow of items from the manufacturer to the consumer. Integrating supply chain management in the organization allows you to reduce the overall costs of supplying goods and services.❕ HR module
This module gathers data about your employees from all the departments and provides your HRs with such valuable information as the time tracker, time-sheet, employee records, job profiles, assignments, sets of responsibilities, and employees’ skills. The HR module can also help with hiring, onboarding, compensation management, and, what’s more, it can include a payroll system and performance reviews. It helps to manage wages, reimbursements, and so on.How much does it cost to make an ERP system?
It’s difficult to tell the exact cost of making an ERP system because it depends on numerous factors: the number of modules, project requirements, software development specialists’ hourly rates, etc. On average, an MVP of an ERP system made by Brivian will cost from $30.000 to $60.000, but a feature-rich solution with complex design can cost from $100.000 to millions of dollars.If you’re interested in ERP software development and want to know the details, feel free to leave your contacts in the form below or here, our managers will get back to you within 24 hours to discuss the idea, and give you an estimation of costs and timeline.