ERP Software Development: A Step-By-Step Guide

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Jun 21, 2023

ERP systems have become indispensable for businesses seeking streamlined operations and growth. According to Grand View Research, the global ERP software market was valued at USD 54.76 billion in 2022, with an expected CAGR of 11.0% from 2023 to 2030. With such significance, selecting the right approach for ERP software development is crucial. In this blog, we provide a step-by-step guide to assist you in successfully navigating the process. By following these guidelines, you can ensure a seamless and efficient journey in developing your ERP software.

ERP Software Development: What exactly is it?

ERP stands for Enterprise Resource Planning. It's a software system that gathers different business functions like finance, inventory, HR, and customer management into one central platform. ERP helps organizations to streamline processes, improve efficiency, and gain real-time insights for better decision-making.

ERP software development refers to creating and customizing an ERP system to fit a business's specific needs. The process involves multiple steps: analyzing requirements, designing the system structure, building and configuring software components, integrating with existing systems, conducting thorough testing, and deploying the ERP system within the organization.

During ERP software development, a team of developers, designers, and business analysts collaborates to design, code, and configure the software solution. They work closely with the client to understand their specific business processes, workflows, and goals.

ERP Platforms: What Options Are Available in the Market?

When planning ERP application development, you have two options to consider: open-source stack and licensed-proprietary software.

Open-Source Stack

An open-source stack is a free option for ERP application development that allows businesses to customize and enhance the features of open-source ERP systems by modifying the source code. It offers businesses the flexibility to customize the ERP software according to their specific requirements, aligning it with their unique business structure and processes. 

Furthermore, the open-source stack allows businesses to easily incorporate third-party tools and extensions, enhancing the capabilities of the ERP system. This integration ensures smooth compatibility with other systems and applications, fostering a more interconnected and unified business environment. 

By utilizing the open-source stack, businesses can leverage the collective expertise of the open-source community, stay up-to-date with regular updates, and create a tailored ERP system that supports their business objectives.

One popular example of an open-source stack framework is Odoo. Odoo provides a robust and flexible platform for developing a fully functional ERP solution. It offers a wide range of features and modules that can be customized and extended to meet the specific needs of businesses.

Licensed-Proprietary Software

When it comes to ERP software development, businesses have the choice to invest in licensed or proprietary software solutions. Examples of these solutions include SAP, Oracle, and Salesforce, which offer a range of customizable features to meet specific budget and operational needs. 

Although licensed or proprietary software may be more expensive than open-source alternatives, they come with the advantage of dedicated support for your team. This means that the software provider will assist with any technical issues or challenges that arise during implementation and usage.

Additionally, licensed or proprietary software is renowned for its stability, providing a solid and dependable foundation for building ERP systems. With the stability and support offered by licensed or proprietary solutions, businesses can confidently utilize these software options to streamline their operations and drive growth.

ERP Online Management Platform: Which One To Use?

When selecting an ERP platform, you also need to consider whether you want a dedicated On-Premise ERP or a cloud-based platform. 
Many businesses are now opting for cloud-based ERP solutions as they migrate to virtual infrastructures. These cloud-based systems provide businesses with the flexibility they require by allowing access from any device and location. Furthermore, cloud-based ERP solutions provide a variety of functionalities and features to help with business operations.
On-Premise ERP, on the other hand, involves hosting or installing the ERP application software on local machines within the business premises. While this option gives you more control over your software and data, it may not have as many features as a cloud-based ERP. 
In terms of pricing, cloud-based ERP solutions frequently use subscription models, allowing businesses to choose between monthly, quarterly, or annual payments. This adaptability allows businesses to scale their usage and costs based on their needs. In contrast, on-premises licensed software typically involves a one-time or annual subscription fee, which may require a larger initial investment.

Building an ERP App: Which Aspects To Consider?​

Different businesses have unique needs based on their structure and industry. Understanding these requirements is crucial to determining the essential features. This first step will make your business processes efficient and help you achieve your goals.

Requirement Analysis

Analyzing your business requirements is a critical step in ERP system planning. It entails deciding which processes and activities need to be integrated into the ERP. To determine the functionality and features needed in your ERP software, consider factors such as supply chain complexity and business shortcomings.

Pricing and ROI Factors

ERP software development has various pricing structures and costs. It is important to assess your company's financial position and determine how much you can invest in a dedicated ERP solution. Examine how the ERP software can provide value and a return on investment (ROI) for your company, keeping in mind that this will vary depending on the size of your company.

Scalability and Integration

Your ERP software should be able to integrate various departments within your company and be scalable enough to support real-time reporting and data analysis. It is critical to evaluate the scalability of ERP software, whether open-source or licensed. Consider the software's ability to integrate with third-party tools or platforms that can help with delivery, logistics, CRM, and other processes.

Deployment Time and Integration

In business, time is money. Consider the deployment time and integration process required for the ERP software to include the desired features. Remember to ensure that the implementation does not increase your company's costs.

Your Own ERP App: What Features Should It Include?

There are several features that can be incorporated into ERP software to maximize your business's potential. Here are a few things to think about:

Business Reporting and Data Analysis

A good ERP system should provide a comprehensive overview of your business and offer detailed information about specific data points. Through innovative charts, graphs, leaderboards, and other visual tools, the ERP can provide crucial insights to help you analyze and make informed decisions.


Within an ERP platform, the integration of different departments allows for the automation of various processes. These include logistics, inventory management, delivery notifications, and updates on order statuses. By automating these tasks, businesses can streamline their operations and ensure smoother and more efficient workflows.

Integration with Third-Party Apps

An effective ERP system should have the capability to integrate with various third-party features and applications. This allows for smooth communication and data sharing with other platforms like CRM systems, delivery management software, payment interfaces, and more. This type of integration boosts overall business functionality and streamlines processes.

Basic Business Assistance

ERP software development should include features for critical business activities such as human resource management, accounting, payroll management, and invoicing. These features ensure that the ERP system's fundamental business processes run smoothly and efficiently.

The Takeaways

In summary, by understanding and applying the important points discussed in this blog, you can make significant progress in achieving your business goals through ERP software development. These points will help you grasp the key features that your ERP solution needs to have in order to promote business growth.

We hope that this blog has provided you with insightful information. If you are in search of a reliable ERP software development company, you can trust Bac Ha Software. We offer comprehensive  ERP software development services and Odoo Cusomization solutions that can optimize operations, enhance efficiency, and propel your business toward success.

Feel free to contact us for a free, customized proposal specifically tailored to your business needs.