How To Develop ERP Software For Small Businesses?

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November 2022

At the start of globalization, fast technical advancement combined with varied changes in consumer demand indirectly motivated organizations all over the world to improve their capacity to generate and give more value in order to control and keep market share.

To achieve this corporate goal, implementing a system that can manage the abundance of information is worthwhile. Among many, developing Enterprise Resource Planning (ERP) software for small businesses is a good investment because it has gained momentum, riding the wave of tropical streams such as postmodern ERP, big data, the internet of things and process mining. 

In addition, this majestic software automates your operations with minimal human power. Not convinced yet? According to Statista, the revenue of ERP software development will exhibit an annual growth rate of 6.21% with a market volume of US$ 60.47 billion by 2027. 

Want to explore the ins and outs of ERP software trends for small businesses? Let’s address your queries before curiosity kills the cat. 

What is Enterprise Resource Planning (ERP)? 

Enterprise Resource Planning (ERP) systems solve critical issues such as saving repetitive information in sporadic organizational systems, re-entering existing information in systems, lack of effective communication among various functions, and lack of access to appropriate information at the required time by establishing integrity.

Because of the ERP, all income data is maintained in a uniform database, allowing anybody inside a firm, regardless of department, to access that information. Consequently, everyone has access to what they require, which is structured, evaluated, and ready for reporting. Furthermore, ERP as software can take the form of both a web-based system and a mobile application, with all functions properly aligned.

Each ERP software must be customized in order to address particular areas of performance effectively. These regions may include the following:

  • Salesforce marketing and automation
  • Human resource administration
  • Management of finances
  • Project administration
  • Monitoring of compliance
  • Intelligence in business
  • Reporting that is synchronized and automated

Furthermore, ERP software must support interaction across various domains. All solutions will have one thing in common, i.e., modules. They correspond to various areas of performance and must be loosely coupled in order to be integrated with other existing systems. As a result, the process of designing bespoke ERP software will entail the use of existing modules as well as the creation of new ones.

What are the Benefits of ERP Systems? 

Now that we have covered the fundamentals, let’s explore the benefits of developing ERP software for small businesses. 

Data Security 

Because data is so important to making the best decisions, it has become a prized possession for businesses, and ERP software can help protect that asset. The fact that all of this data is in one place rather than distributed across multiple systems with varying levels of security improves security. It takes the place of spreadsheets and other documents currently sitting on employees' desktops and being distributed via email. 

 

A cloud ERP system typically distributes your information across multiple remote servers to establish redundancy and protect against a single point of failure, adding another layer of security. It is especially important if your company deals with sensitive customer information.

Increased Productivity 

There are numerous ways in which an ERP system can significantly increase productivity. One way is that it automates many basic, repetitive tasks, freeing up employees to work on more valuable projects for the organization. 

 

It can also help them complete various tasks more quickly by simplifying processes and reducing the time spent searching for the required information. Moreover, employees don't have to ask around for specific data or details on how certain processes work because they have visibility into the entire company.

Visibility 

Another broad, fundamental benefit of ERP is visibility — everyone having visibility into various aspects of the business is a powerful thing. It enables managers to make faster and better decisions because they can access all relevant contexts. 

 

For example, if the purchasing team can see the status of in-transit purchase orders that haven't yet arrived at the warehouse, they can factor that into the orders they're about to submit to avoid having too much or too little stock.

Mobility 

Employees have grown accustomed to using smartphones and tablets instead of computers to complete many tasks. As a result, today's ERP systems are mobile-friendly. Therefore, many vendors now offer mobile apps that can improve the user experience on smaller screens.

Real-Time Reporting 

Reporting is undoubtedly one of the most significant and immediate advantages of implementing an ERP system. With the ability to customize reporting across all functions — finance, inventory, orders, procurement, sales and marketing, HR, and anything else you can think of — the possibilities are limitless. 

 

An ERP solution can calculate whatever you want to measure or which KPIs are most important to your company. You can not only track the performance of various business components but also compare departments to understand what is propelling the business forward and what is holding it back.

Build Or Buy An ERP System? 

When selecting ERP systems, a business owner or another decision-maker in a corporation should evaluate this question.

Regarding the company's software requirements, the "create vs purchase" option is difficult. If you want to produce, you must consider how to design web-based ERP software, but if you choose to buy, you must specify what that programme should look like.

Third-party ERP software

The off-the-shelf ERP in businesses can be deployed right after the first installment of payment. For example, solutions such as SAP Business One, Acumatica and ARFA-ERP are a good fit for small- and medium-sized businesses. Simultaneously, the most loved ERP systems such as Microsoft Dynamics 365, SAP S/4 HANA and Oracle NetSuite are a perfect companion for large enterprises. 

However, they lack flexibility. Any manipulation in source code or API integration demands a development team on site. Moreover, training resources and implementing change management at the corporate level can be a nerve-wracking challenge that demands time. Therefore, it takes months and years to see the results after implementation. 

On the contrary, third-party ERP software safeguards you from the gloomy shadows of ERP system development. It saves you the time and cost devoted to searching and hiring a software development company. 

Custom-made software 

Custom-made ERP systems are a clean piece of paper on which you can draw your wildest imagination. You can integrate personalized features such as inventory visibility for supply chain management, archive release notes library for product management, or lead analysis for the sales department. Most importantly, it builds a symbiotic relationship between departments. 

Develop ERP software for small businesses with ARFASOFTECH that will grow with your brand as you expand your operations. It means you'll never have to worry about upgrading or replacing your software again!

Moreover, engineers prepare detailed documentation during the development of an ERP system that assists the concerned personnel in identifying uncharted issues without seeking support from third-party vendors. 

As a matter of fact, hiring a technical writer will work like a charm for your business because they can write user manuals and guides that will streamline the training process and debunk the myths of user resistance. They can help employees understand the purpose and features of ERP software. 

Step-by-step Guide For ERP Software Development Process

If you're convinced enough to begin developing bespoke ERP software, you'll need to know what steps to follow to produce a solution that suits all, or at least most, of your business's demands.

  • Defining your goals 

The ineffable cannot be embraced. Even with customization, it is impossible to obtain everything in one solution right away. So, first and foremost, you must establish the vision and scope of work in order to construct your future ERP solution. Aim at finalizing your plans ahead of time for ERP software development.

Once you have clarity of your ideas, directly communicate your goals and expectations to the developer, who defines what the system should offer at the end of the development process. Eventually, the customer and the IT professionals agree on the functioning and features of the final product. 

  • Crafting a blueprint

A blueprint, like other operations, serves as the foundation for the entire process. Hence, it should be quite thorough. The custom system blueprint includes detailed information on the development process, timeline, and resources to be employed. It is a document that was prepared by everyone engaged with the target system. 

This process comprises developers (whether in-house or outsourced), project managers, IT executives, and, in certain cases, the software's end user. They are all necessary for the development of the master plan.

  •  Investing in wireframing

Wireframing entails outlining the components involved in the custom ERP development process, such as sales, HR, accounting, and procurement, among others. It lays the groundwork for which business processes and data will be migrated to the system.

Web-based ERP software (with the backend and database hosted in the cloud) or client/server ERP (where a system runs locally on a network of computers) are the two most prevalent solutions.

In this phase, plan the stages of developing ERP software for your small business. Most importantly, you can always outsource your ERP software development process to an external team, like the one we have at ARFASOFTECH. We prioritize your feedback during each development stage and keep you updated on product enhancements through daily meetings.  Also, we recommend engaging in wireframing to keep you informed. 

Here are the main points you must consider at this point:

  • Define modules: Determine which modules your ERP should include based on its functionality. Depending on your needs, these modules might include CRM, financial management, supply chain management, or any other resource management sectors.
  • Team Size: Determine the size of the team working on the project, as well as the resources the team will require.
  • Timeline: Even if you are unable to create clear milestones or deadlines, strive to establish a timeframe for the project.
  • Selecting the right tech stack 

To build a web-based ERP software, select a tech stack that will support your objectives while achieving desirable results: 

  • Hosting: ERP solutions can be hosted on local servers or through a cloud host. Cloud computing is gaining popularity owing to its multiple benefits, one of which is security. On the other hand, local servers need significant hardware expenditures and compensation for employers who will maintain them. As a result, many businesses choose the cloud.
  • Databases: A database contains a large amount of critical business information. This information is associated with a bundled ERP business application or system and must be saved for future reference or analysis. Because they are readily scalable, versatile, and easy to set up, NoSQL non-relational databases are recommended for enterprise resource planning applications.
  • Taking Care of Integrations 

Prior to using an ERP, businesses often relied on distinct tools and workflows to handle critical tasks. Integrations like Google Suite and Office 365 combined with ERP systems can save time and cost invested in building large modules. 

While designing a new app requires significant effort, ERP developers might leverage re-configuring old apps. It will significantly improve the coding process.

  • Performing quality assurance 

It's time to start testing when you've migrated your company's business knowledge to a single resource planning system. Several processes should be considered for inclusion in this review:

  • Examine the system to see if it meets the basic security, integration, and functionality criteria.
  • Perform accounting or sales processes across multiple modules to test the ERP's functioning. Calculate the accuracy of results returned by the system.
  • Use focus groups to test certain modules. For example, the HR department would most likely use a combination of modules focused on payroll, human resource management, and personnel records. To see how these modules interact, ask a few employees from the target department to utilize them and provide comments.
  • Carry out security testing. We advise combining dynamic security testing with Web Application Firewalls (WAFs). It enables you to identify and respond to vulnerabilities as they occur.

How Much Does An ERP Development System Cost?

There is, of course, no such thing as a one-size-fits-all ERP. Its development expenses can range from $20,000 to millions of dollars. Various factors often influence the cost of ERP development. For instance, departments that will utilize the system and its functions will directly impact the ERP software development cost. Small companies pay far less than major corporations since the latter have far more users and capabilities.

Big or small, there's a systematic technique to forecast your usual expenditures and choose the most cost-effective ERP development option:

Calculate the number of users

Most SaaS corporate software suppliers charge at least $400 per user per month so that you may make estimates based on your department/company size. Custom software may be less expensive.

Determine what you (really) need 

Make a comprehensive list of the required modules before contacting suppliers and development teams. Companies that want to "have it all" typically overspend for ERP development. Remember that the amount of ERP features affects the price, so you may end up paying for something you won't utilize. Make sure your list only covers the necessities.

Calculate the cost

Compare pricing for many software development companies and request thorough summaries of each proposal's cost distribution if you plan to outsource your ERP development. In certain circumstances, bespoke development with an overseas business may be less expensive than SaaS ERP software.

Explore ARFASOFTECH pricing strategies that have proven to deliver 97% customer satisfaction over the last 8 years. If you are interested in in-depth discussions and a cost estimation proposal, request a free consultation today! We will be delighted to hear from you.

How Can ARFASOFTECH Help You? 

ARFASOFTECH is not just your service provider, and we are your partners. Our engineers make endeavors to develop ERP software for small businesses with the corporation’s infrastructure.  Their tech expertise is compatible with global developers’ rates. Although the early costs of developing such a system may appear high, they will prove to be worthwhile in the long term. 

Attention to detail, comprehension of your business logic, comprehensive use of cutting-edge technologies, and knowledge of best practices in the field of ERP software development help us develop an ERP system completely tailored to you.

Frequently Asked Questions 

What does the ERP mean?

ERP stands for Enterprise Resource Planning, which will serve as your integrated management of company processes and apps, allowing you to achieve resilience and real-time agility while positioning yourself for growth. 

What is the best programming language for an ERP system?

Java is a cross-platform programming environment that provides extensive support for constructing web applications. With such characteristics, this language is quite useful in building websites and associated applications. Also, JavaScript frameworks work magic for frontend development and Node.js frameworks for backend development. 

Which problems does ERP solve?  

An ERP software solves the following challenges: 

  • Communication challenges
  • Repetitive manual tasks
  • Customer data tracking
  • Financial disorder
  • Decision making
  • Costs

How can ERP help an organization? 

Many firms benefit from ERP systems. ERP benefits include easier company operations by integrating and securing your information, automating procedures, and creating simple reports. The benefits of ERP systems in an organization make day-to-day operations and long-term planning more efficient with these and many other features.

Why Companies need an ERP system? 

Small businesses use ERP software to improve communication across departments and optimize business processes by providing easy visibility into all operations. ERP software also assists small businesses in integrating financial and customer information into a single system.

How to develop ERP Software? 

As mentioned above, the ERP software development process consists of six stages. To gain personalized insights for your ERP development process, schedule a free consultation call with us today! 

How long does it take to develop an ERP system? 

When deploying an ERP, firms should strive to finish the project in 4 to 6 months. Sometimes, it takes a year or more. 

What are the technologies used in ERP software development? 

The following technologies are used in ERP software development: 

  • Databases
    • PostgreSQL
    • MSSQL
    • ORACLE SQL
  • Programming Technologies
    • .NET and ASP.NET
    • Java
    • Ruby
    • Python
    • PHP
  • Frontend Technologies
    • JavaScript
    • AngularJS
    • React
    • Vue.JS

Why is ERP important for businesses? 

It aids in streamlining corporate operations and the enhancement of overall business activities. An ERP solution often encompasses a wide range of end-to-end operations, including finance, human resources, warehouse, manufacturing, customer relations, order management, marketing, sales, project management, and others.

author

Fahad Ali, Author

Fahad is PM at ARFASOFTECH but has a knack for writing. He enjoys writing about the latest technologies and evolving trends. Most of his writings revolve around trending technologies and their integration into operations.

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