Hey guys, today in this blog post, we are going to discuss what is custom ERP solutions. So keep reading.
ERP in full stands for Enterprise Resource Planning. An ERP system is an elaborate tool with the primary objective of automating most business processes. It makes the communication between departments more efficient. Custom ERP software can be used for many functions.
An ERP system is made up of an extensive database where all the company’s data is stored and can be easily analyzed and managed. Each part of the department has access based on the permissions and roles as well as access levels. The main goal of ERP software is to provide maximum visibility to team members and promote cross-departmental collaboration.
What Does An ERP System Do?
Several business processes going on inside a company can sometimes be difficult to control. With many departments, it is usually more challenging to establish an effective workflow. By implementing a custom ERP system, you will create a coherent ecosystem where all the units are connected, and the collaboration between them is as easy as possible. The main goal of an ERP system is to unite all business processes within one system and make them operate as a single mechanism.
To achieve this, an ERP system utilizes modules. Each of them is meant to improve a specific performance area. These performance areas are normally narrowed down to three main categories: assets, human resources, and sales. Therefore the main ERP modules include Sales and Marketing, Financial Management, HRMS software, Customer relationship management, Sales and marketing, Purchasing, Supply chain management, Manufacturing, and Inventory.
The above modules interact with one another. For instance, the HR component houses information about the list of employees and their vacations. On the other hand, payroll, which is part of the financial management module, requires the data from HR, computes the number of hours worked, sick leaves, and vacations, and enrolls the salary paychecks at the end of each month in a banking system.
You can customize the number of modules whether you are deploying an out-of-the-box system or establishing a custom ERP software. However, when it comes to custom ERP software, you have much broader opportunities in setting up the system according to your particular needs.
Custom ERP vs. Off-The-Shelf Software
When you’ve opted to invest in an ERP system, you need to decide which option best suits your needs. Custom ERP software is always a reasonable choice no matter the kind of application. Bespoke solutions invariably win over ready-made software for numerous reasons. However, it might be expensive and is the most common reason why middle-sized businesses and startups do not adopt this option.
Off-the-Shelf ERP System
Various ready-made solutions are available. The most common ones are Oracle ERP cloud and SAP ERP solutions. These bespoke solutions have their main strengths which involve being built from the ground up according to the client’s needs. No matter how challenging it is, those who develop this kind of ERP strive to achieve it.
Off-the-shelf options usually have a modular structure, this enables the users to work with payments, inventory, and human resources among other things. However, the modules may not cover all the needs or can be excessive. Therefore, the development team has to spend lots of time learning how to use the ERP software and tuning it before taking full advantage of it.
Custom ERP Solutions
Custom ERP solutions are undoubtedly the best option when it comes to customization opportunities, performance, and scalability. However, the upfront costs may be a challenge to businesses and it can discourage you from building an ERP system.
By opting to build custom ERP solutions, you will choose a professional team you can trust. They work with your business analysts to make sure all the requirements are met. At this stage, you can feel the main benefit of the custom approach is to specifically design software that will fulfill all your needs.
Developing a custom ERP software can consume lots of time. ERP mobile application development takes less time than the primary system but it still consumes lots of time in its planning stage.
The cost of developing a custom ERP system is a tricky issue. It costs higher than ready-made software but does not come with any hidden costs. This means that you incur the costs only once and have full ownership of the system.
Custom ERP is worth implementing whether you’re running an enterprise or a start-up. There is a widespread belief that ERP systems require complex servers, workstations, and costly hardware that only established companies can afford. However, modern technological advances say otherwise.
With the increasing popularity of SaaS solutions, even startups can afford to build an ERP system. The flexibility of such software enables customization of the modules and the overall system. The ERP for a small business does not have to be as complicated as one for an enterprise.