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ERP Software Development for Businesses: All Steps Explained

Did you ever think about getting an ERP system for your company? Most likely, you have heard that the market for such systems is snowballing. Today, not only large and medium-sized, but even small companies are starting to use them. In this ERP guide, we will talk about the purpose of ERP systems, how to choose the right ERP software or order its development, how it works, and what benefits it can bring to your business.

What is ERP system software?

The ERP stands for enterprise resource planning. This software is designed to plan resources and speed up the business processes. With its help, you can reduce the negative impact of the human factor and optimize the company’s functioning, even if it consists of many departments, divisions, and employees.

Sometimes, ERP software becomes a kind of enterprise strategy that takes into account the management of specific areas:

  • finance, as tax and accounting records are maintained, a budget is planned;
  • human resources;
  • assets;
  • interactions with partners, preserving a detailed history of transactions with customers.

Why does your organization need ERP?

Today, all business areas are actively developing, so almost every company moving forward is quickly faced with the need to implement information systems that will help optimize some part of the company’s work. This is required to remain a competitive organization and reduce the resources that are used in production.

Like any information system, ERP works with data. Every employee and department is constantly creating hundreds of megabytes of information. In a small organization, the manager has direct access to all the information and time to track processes. If a large amount of data is created within one or two business processes, it is enough for the manager to digitize them with point IT solutions. As a rule, an organization buys accounting software and, for example, CRM.

With the company’s growth, those individual processes that used to take a minimum of time to manage are transformed into large amounts of information. In conjunction with other business processes, disparate information flows require a substantial administrative staff to combine and analyze them. Therefore, an ERP system is the choice of medium and large businesses.

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Features of ERP software

ERP software helps create a single information space that will allow all specialists to work with this array simultaneously. Information will be available to everyone instantly. There will be no downtime, and the software will minimize the number of errors due to the human factor. But even if the errors appear, eliminating them is pretty simple. Therefore, ERP is recommended for all enterprises where data accuracy is a critical factor.

If an organization is going to grow and wants to keep up with the times, it needs to establish a quick exchange between its divisions. This is required if there is more than one department and from 10 employees.

When processes become complex, everything needs to be streamlined and upgraded. Instead of a lot of different software that does not integrate well with each other, it is easier to install one platform that will solve all problems at once.

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What are the types of ERP systems?

Not so long ago, the company was happy if it was possible to manage both finance and operational issues within one program. Modern software suggests complex solutions that can introduce automation into all business processes and, at the same time, remain within the framework of one standard software.

More and more organizations realize that they must learn how to distribute resources among all company departments properly to work successfully. In addition, it is necessary to combine all disparate tasks into one high-performance software, the management of which gives managers the foundation and information to make informed, effective decisions.

There are four criteria for dividing ERP software into types:

  • by a purpose: industry-specific and general;
  • by type of organization: private, hybrid, public; they are also divided into cloud and exclusively internal, desktop, which is only for PC, and browser;
  • by architecture: unified and modular; the latter is now becoming more popular because you can choose the ideal system for yourself by composing it from several parts;
  • by type of license: proprietary and open source.

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Getting ERP software for your organization

There are three ways to get software that will help you plan resources.

Create your own product. If you write everything entirely on your own, there is a risk of getting inoperable material with many errors that will create big problems during operation.

Buy a ready-made platform. If you make the right choice and order additional tuning, you will get standard software, but it works perfectly with your tasks. Still, you will need regular support from the developer.

Order development by professionals. It is more expensive, but it is possible to get a result that will be fully tailored to the needs of the business.

The ERP software market

The international market for ERP systems is growing annually by an average of 7.2%, according to Allied Market Research (AMR), and is expected to reach $93 billion in 2028. According to Panorama Consulting Solutions, companies have implemented ERP systems from the American vendor Oracle more often in recent years. One of the oldest players in the ERP solutions market, the German company SAP, is lagging behind the leader by 1%. Further, with a more significant lag, American Sage, Epicor, Infor, Microsoft, and other vendors.

According to research, the payback period for 50% of ERP implementations averaged three years, and 30-80% of companies managed to achieve their goals, mainly related to ensuring the availability (80%) and reliability (55%) of data, increasing the integration of processes (46%), productivity (44%), better decision making (43%), and cost reduction (37%).


In conclusion, we note that the market for ERP systems and the systems themselves are developing dynamically, acquiring more modern functionality, and becoming more mobile, convenient, and accessible. Thanks to cloud solutions, such systems began to be implemented even in small organizations.

The requirements for ERP systems from users are growing, for whom it is crucial today to have remote access while maintaining a high level of information security.

We are confident that the market for ERP solutions will continue to grow, and the systems will become more widespread as a convenient and effective tool for enterprise management.

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