Custom ERP Software Development - Ultimate Solution for Business Process Automation

  • Assim Gupta
  • Feb 23, 2022
  • 9 Min Read
Custom ERP Software Development for Business Automation

Article posted by

Assim Gupta


Assim Gupta is the CEO and Founder of Closeloop, a cutting-edge software development firm that brings bold ideas to life. Assim is a strategic thinker who always asks “WHY are we doing this?” before rolling up his sleeves and digging in. He is data-driven and highly analytical, yet his passion is working with teams to build unexpected, creative solutions that catapult companies forward.

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In the dynamic world of business applications, one fixed solution for the constantly changing environment rarely works. Why buy monolithic ERP software and then spend years, ransom funds, and a fortune customizing it?

Why would you need to indulge your mind, time, and money in custom ERP solutions for your business when numerous ready-made off-shelf solutions are available in the market?

It is because tailor-made CRM centralizes the business process for you to manage it effectively from anywhere you want. The range of its functions includes inventory management, order processing, delivery management, production management, warehouse management, payroll management, business resources monitoring, providing accurate reports on revenue, expenses, staff, clients, and much more.

ERP software's benefits go beyond improving a company's and business's everyday operations. Here we will discuss a series of reasons why this transformative technology in the software development industry is quintessential for start-ups and established enterprises.

1. Standardize business operations

Custom ERP solutions can streamline repetitive business processes with automation. Leveraging custom-made automated technology in the company's internal processes puts the tedious processes on autopilot like order processing, delivery management, employee management, masters of clients database, auto-reminders for repeat orders, etc.

2. Data-oriented decisions

ERP takes care of end-to-end business processes, including customer ordering details, billing details, daily/monthly/yearly sales data, stock loss, employee attendance rate, and many more. ERP processes real-time data and provides accurate reports to assist in future decisions. For instance, it is viable for your staff to give a specific lead analysis feature to take balanced decisions more quickly.

3. Organized cross-department coordination

The company consists of multi departments. The more closely activities and centralized databases are synchronized across divisions, the less they can trade off between coordination and adoption. Staff members can coordinate work between departments and access all the critical company data more efficiently.

4. The ability to better serve customers and suppliers

Customized ERP solutions allow businesses to better advertise their existing and potential customers and provide advanced and more personalized customer services to their clients. For example, you are operating an online pharmacy where you want to auto-remind your customers to refill their regular medicine order; this is the moment when with just one click, ERP waves the wand of automation, and magic happens; the best thing about ERP is centralized and synchronized data.

5. Meet the exact need with low maintenance

Though it takes time from conception to ERP integration, the care takes much more time. Running all the features is almost 100% since every element is constructed to address specific business needs. The objective is to build the automation process considering the business essentials during different releases.

6. In the long run, it is less expensive

One of the primary steps in developing an ERP software solution is determining transparent pricing policies. Because users only pay for the one-time design, platform, and storage space for data, not for the level of automation, modifications, or third-party integrations, you can always keep track of your ERP costs.

Test, add features, and keep track of your spending. A custom ERP system allows you to design an ERP step by step and evaluate it thoroughly at each level. You can customize the layout, languages, software architecture, and development environment and employ internal analytics to ensure that everything runs correctly. If you want something more in the long run, you can add new features at any time.

7. Scale your business

Custom ERP software allows you to expand your business quickly and easily. Scalability will enable you to keep ahead of the competition in the event of a crisis, as well as save time and money when switching to another offshore ERP unless the current one no longer meets your expectations and requirements.

There is no need to change the current management system or business process.

There are no additional functionality or UI elements, and you can add or delete new tools as needed.

Comparison between off-the-shelf and Custom ERP solution

A traditional source of technology gets superior quality as various industries have been using it for years. However, a customized ERP solution is the preferable choice for most businesses operating multidivisional.

Customized software is created and designed to meet a particular set of organizational needs, including routine workflow, objectives, preferences, number of users, and scalability.

Opposite to customization, off-the-shelf systems are ready-made solutions for your existing business problems. They have to integrate into the business to cater to resource management needs.

ERP is a cost-effective solution built on required attributes with no extra and useless features. It has no hidden costs and low maintenance in the future.

As the name suggests, a custom ERP solution gives you the flexibility to modify, change, or add functionality without any hassle and extra cost.

Off-the-shelf ERP software has its own set of expenses attached to each module, including various parameters like licensing fees, customization charges, implementation costs, etc.

Implementing custom ERP and integrating its KPIs with current business applications is as straightforward as designing to set the compatibility with your existing business applications and available external systems.

Third-party integration is possible, but it is pretty expensive and comes with a list of licenses and data management difficulties to deal with.

Once a business comes into motion, it should remain in action in this competitive world to stay ahead of the curve. Mobile ERP solutions are the right choice for mobility adoption.

Is Custom ERP development necessary for your business?

What are your goals, and what is the size of your business? Choose which solution is more feasible for your company - ready-made or custom-made solutions. For Example - if you have a cafe where you want an automated billing system and order management, then, in that case, ready-made solutions can work best.

But suppose you are a mid-size or large organization with predetermined business objectives like global scalability, centralized database, synchronized cross-department functions, and unique product and service offering. In that case, custom ERP software development fits perfectly.

Research, understand the business needs, analyze the business goals and check if you need custom ERP by going through the following commonly-occurred issues:

  • Need of required data

  • Confusing software diversity

  • Problems with accounting

  • Poor customer experience

Development of Custom ERP Software - Step-by-Step

The process of development of Custom ERP software becomes easy if you predetermine the specific requirements. Any successful development process has a deep understanding of future product functionality, excellent awareness about the robust software development tools, and clarity about conception.

Steps to be taken while building an ERP from scratch are as follows:

1. Explain your company goals and specific requirements

Explaining your company goals, priorities, and criteria at the ideation stage will allow your production team to architect a quality product.

Every company has its criteria for integrating its workflow into software, although most choose to include those business activities as customer database, sales, financing, distribution, sales, and delivery.

In this step, the enterprise primarily sets the list of business-specific requirements and then documents the project accordingly. Your essential tech document should include features description, platforms, programming languages, required integrations, projected future product capabilities, project timelines, and other significant details.

2. Designing ERP software

Every endeavor necessitates the use of design. The UI/UX specification should be user-friendly and transparent for ERP systems. ERP software typically includes a variety of user functions, keys, maps, and other navigational elements. Building wireframes and considering the user flow before jumping to UI designing is any day a good option.

3. Choose the right software developer or tech vendor

Check your tech stack's relevant and required skills set. Also, the technology partner or in-house hiring employee depends on the platform selected to create ERP.

For Windows - C++ or C# language works.

Swift or Objective-C is required for mobile apps and web platforms.

Also, they are proficient in creating efficient software and talented for effortless implementation, easy integration, and rapid modifications(whenever needed). The technical requirements of your project frequently determine the ultimate toolset. You can collaborate with professionals to determine the correct technology stack for your ERP software.

4. Select the external sources

There are two external sources from which ERP software developers can workaround. Analyzing the necessities and identifying the required resources will help you fully understand the entire cost of putting your ERP in motion.

  • a. Physical servers

  • Here, ERP runs on-premises servers. For a big organization, this external source turns out to be a great choice as they have enough resources and skilled personnel to take care of a massive ERP system.

  • b. Cloud-based servers

  • Closed-based servers are in demand to run custom-made solutions or ready-made solutions for business operations. This external source is the success of small to mid-size business enterprises, provided that the cloud-based ERP solutions focus on business flexibility and development. Neither have to hire an expert nor bear any extra maintenance costs.

5. Integration, testing, and improvement

ERP development from scratch aims to increase business management efficiency while increasing customer experience. Simultaneously, ERP should be secure and dependable in its capabilities and data operations.

ERP requires more time for quality assurance than other types of app development since it requires integrations with the digital business ecosystem and any third-party services your company uses.

It's also critical to form a focus group to test your product in a real-world setting.

6. ERP Modules

A custom ERP solution offers a generalized set of features but needs to be thoughtful while selecting the modules as per your business needs. Let's discuss the possible ERP modules for your business. Your developer will help in the selection of the most required one.

  • Business Intelligence- This module dashboard collects information from different departments, diverse functions, analysis, and reports. The results of this module allow you to access real-time data and help you estimate business performance.

  • Automation - Automation increases the efficiency of your human resources as automation in routine tasks saves a lot of manual entry time. It lets your staff focus on high-priority tasks.

  • Accounting - As the name suggests, this module addresses various financial functions like maintaining balance sheets, payrolls, bills, debtors, creditors, and general ledger and analysis based on the data.

  • CRM - It synchronizes the customer masters at one place and helps you in high customer retention by regular reminders about new offers, refilling orders, and improved contact with existing customers.

  • HR - The human resource module manages and keeps track of every activity-related employee. Essential features included in any HR ERP solution include attendance tracking, payroll management, recruitment, and personal information. Each submodule contains a set of features that assist HR managers in performing their duties more quickly and efficiently.

  • Marketing - Integration of the marketing module works best when combined with other functions like sales, CRM, and business intelligence. This module includes sales, customer engagement analysis, promotion strategies results, sales employee performance, advertisement planning, and reports.

Calculation of ERP software Cost

Determining the pricing of custom ERP is not easy as the development base depends significantly on the CRM features and KPIs integration. Though primarily every organization sets the ERP objectives to estimate the final cost of ERP.

However, during the development and integration process, enterprises often understand other emerging features that need to integrate with the current development product before implementing the final one. The price may fluctuate as per the changes.

Also, it depends on the development model, whether you have a squad of in-house engineers or you want to go for third-party expert developers.

Factors that affect the estimation of the final cost of an ERP solution are:

  • Level of Automation

  • In house or third-party developer

  • Region of development

  • Customer Relationship Management (CRM) features

  • ERP integrations

  • Advanced analytics and modifications

Wrapping Up

Custom ERP development addresses a wide range of business issues without any doubt. The significant advantage of this technology is that it maintains the motion of internal processes and makes them efficient, if not completely automated. Automation of your company's workflow and control over your customized automatic process will genuinely benefit your organization and contribute to achieving your goals quickly.

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