Should you build your own ERP Software? How to build an ERP Software from Scratch.

Published on Jan 12, 2023

Zignuts Technolab

Software Development

Web Application Development

What is ERP and how is it useful?

In every company’s growth journey there comes a point where google docs, excel sheets, filing and other are not able to fulfill the demands of the business operations. Traditional methods of organizing, planning and managing a business become redundant and the business requires something advanced that can match the scale at which the business is operating. This is exactly where ERP or Enterprise Resource Planning Softwares come in.

An Enterprise Resource Planning (ERP) software is a type of business management software that helps businesses manage and integrate various functions and processes, such as sales, procurement, accounting, human resources, supply chain management, customer relationship management and others within one platform. This helps all different processes and departments to work in unison towards the goals of the organization. Traditional business management can cause processes to work in silos without any coordination with others, hence making the processes and efforts ineffective.

ERP systems are typically implemented by large organizations and are often made up of multiple modules that can be customized to meet the specific needs of the business. ERP systems can be deployed on-premises or accessed via the cloud, and they can be accessed by employees, customers, and partners via a web browser. These softwares are designed to help businesses operate more efficiently and effectively by providing a single, centralized system for managing and integrating various business functions and processes. They can also help businesses make better decisions by providing real-time data and analytics.

How can ERP help your business?

There are several ways in which investing in an ERP can bring about great benefits and returns for an organization, such as:

- Improved efficiency and productivity

ERP software can streamline business processes and eliminate the need for manual data entry and other manual tasks, allowing employees to focus on more important tasks.

- Better decision making

Real-time data and analytics through ERP systems allows businesses to make informed decisions based on accurate and up-to-date information.

- Enhanced collaboration

A well designed ERP can enhance collaboration among internal stakeholders by bringing different teams and departments together, allowing them to share data and collaborate more effectively.

- Increased customer satisfaction

An effective ERP system can prove to be a great asset by helping businesses manage customer relationships more effectively and deliver better customer service.

- Reduced costs

ERP can help businesses automate processes and eliminate manual tasks, which can reduce labor costs and improve efficiency.

Overall, ERP software can help businesses operate more efficiently and effectively, enabling them to better manage their resources and improve their bottom line.

Building your own ERP System

The problem with existing ERP Software's is that most of them have general features and functionalities which could help businesses manage areas that are common among most organizations. While many ERP softwares do allow addons and customization, however, none of them can truly meet exactly what your organization needs. Every organization is different, and so every organization works in a different manner and has different needs and requirements which are unique to only one organization. How can generic ERP software's meet such unique needs? They can’t, but does that mean that ERP is not for your organization?

If your organization is such that regular ERP Systems don’t fulfill the true requirements of your business then the right option is to build an ERP System tailor-made to suit your business and its processes. However, building your own ERP system can be a complex and time-consuming process, and it is typically not recommended for most organizations as it requires a lot of expertise and additional resources. ERP systems are designed to be comprehensive and integrated solutions that manage various business functions and processes, and building one from scratch can be a very challenging task.

Benefits of Building your Own ERP

That being said, building your own ERP system can provide great benefits to your organization such as:

Organizational Customization

Building your own ERP software allows you to tailor the system to the specific needs of your organization. You can choose which features and functions to include, and you can design the system to fit your organization's unique workflow and processes.

Direct Control

By building your own ERP software, you have complete control over the development and implementation of the system. This can be particularly useful if you have specific requirements that are not met by off-the-shelf solutions.

3rd Party & Other Integrations

Building your own ERP software allows you to integrate the system with other systems, 3rd party apps & integrations and other applications that your organization uses, such as CRM or supply chain management systems.

Cost savings

In some cases, building your own ERP software may be more cost-effective than purchasing an off-the-shelf software. However, this is not always the case, hiring an expert agency with prior experience in building ERP Systems can help in bringing down development costs and time rather than developing one in-house.m.

Overall, building your own ERP software can be greatly beneficial for your organization by allowing you to tailor the system to your organization's specific needs and requirements. Contritely, it can be a complex and time-consuming process, and it is not recommended for most organizations to build it themselves. However, if you wish to enhance your business processes by building a custom ERP Software for your organization then it is recommended that you avail the assistance of experienced experts such as Zignuts.

Key Business Features of ERP Software

Financial management:

ERPs consist of features for managing financial transactions such as accounts payable, accounts receivable, and general ledger. It may also include budgeting and forecasting tools to help businesses plan for the future.

Supply chain management:

An ERP can help you in managing the flow of goods and materials, including procurement, production planning, inventory management and shipping. It may also include tools for tracking supplier performance and managing relationships with suppliers.

Human resources:

This includes features for managing employee data, payroll, benefits, and performance evaluations. It may also include tools for tracking employee attendance, managing employee training, and automating HR processes.

Manufacturing:

Manage and streamline your manufacturing process, including materials sourcing, allocation and managing, production planning & scheduling, and quality control. It may also include tools for tracking production costs and analyzing production efficiency.

Customer relationship management:

This includes features for managing customer data and interactions, including sales, marketing, and customer service. It may also include tools for tracking customer interactions and managing customer support inquiries.

Project management:

An ERP is a great tool for managing projects which includes task assignments, resource planning, and project tracking. It may also include tools for tracking project progress and identifying potential issues and areas for improvement.

Reporting and analytics:

In-built ERP features can help businesses with valuable information through reports and critical data. This enables businesses to make informed decisions based on accurate and up-to-date information. It may also include tools for visualizing data and creating dashboards.

Overall, the specific features of an ERP software will depend on the needs of the business and the capabilities of the software. Some ERP software packages may include all of the features listed above, while others may focus on specific areas such as financial management or CRM.

Factors to consider while building an ERP

Identify your business needs: Determine which business functions and processes you want to include in your ERP system and how you want them to be integrated.

Evaluate your resources:

Assess your team's skills, budget, and time constraints to determine if building an ERP system is feasible.

Choose a development platform:

Select a development platform that will be used to build your ERP system. Options may include a custom-built platform or a pre-existing platform such as Microsoft Dynamics or Oracle.

Develop the system:

Design and build the various modules and components of your ERP system, including modules for accounting, human resources, supply chain management, and customer relationship management.

Test and debug the system:

Thoroughly test your ERP system to ensure that it is functioning correctly and address any issues that arise.

Implement and roll out the system:

Once your ERP system is complete, implement it within your organization and train your employees on how to use it.

Building an ERP system is a colossal task and businesses often possess the resources and expertise required to build one. However, even if you don’t have the required resources and expertise, you can still build your own ERP by collaborating with a technology partner. We Zinguts are one such technology partner you can rely on. Want to build an ERP or any other custom software or application? Get in touch for a free consultation and we will help you identify the best approach and technology.

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