The challenges of traditional ERP platforms
Investing in an ERP system is costly. The average cost per user is $9,000, and customization can cost even more (at least $150,000 per project). Because of this, traditional ERP can be a miss for small to mid-sized businesses. Being such complex systems, most off-the-shelf ERP systems today will only assist enterprises to a certain extent.
Here are a few things to consider before using a traditional ERP system (buying from vendor or building one from scratch)
- Users’ complexity: ERP can be challenging to use initially, as it serves multiple purposes. So, remember to train your users and update the system daily to make the best of it.
- Customization is limited: One ERP platform is used by multiple companies in different industries. And it’s not a one-size-fits-all solution, which means that even though they offer a large set of configuration parameters, they cannot be perfectly made to specific company needs. Customization is sometimes allowed, depending on the vendor, but it’s still challenging to recreate something already based on a foundation.
- Mobility: Not all features are available when working on mobile devices such as smartphones and tablets.
- There is no process-oriented thinking: Process automation is quite limited in ERP. Even though the system supports multiple departments, it’s better to be used for managing small team workflow.
- Capabilities for integration are limited: It does not provide ready-to-use connectors to third-party systems but instead provides API and expects other systems to handle the integration.
As you can see, with those downside facts of traditional ERP systems, companies are seeking a way to custom code their ERP with limited budget and resources. If the cost and complexity of a conventional ERP have prevented you from incorporating it into your business model, a low-code ERP may be the ideal solution.
What is low-code ERP?
Low-code technology employs simple logic and intuitive drag-and-drop features, allowing anyone to create custom applications without the assistance of IT. Instead of starting from scratch or relying on coding experts, low-code enables you to go through a structured configuration process to meet your specifications. Compared to the traditional development, these building blocks make modifying, creating, and publishing applications much faster.
With low-code, you can build anything, from process automation, internal tools to an ERP system. And everything can be custom-made until it fits your requirements. The drag-and-drop will only act as foundation blocks, so you don’t have to start from the ground up. You can work with a developer to optimize and create as many advanced features as you want.
Advanced features that make low-code ERP a better choice
Easy to use interface
You can create a friendly and dynamic low-code ERP system to assist your daily workers (such as a warehouse worker, a seller on the shop floor, or a manager) step-by-step in their daily tasks and operations.
The system will be precisely adjusted to the optimal working path, therefore increasing efficiency and preventing confusion. Furthermore, any new employees will be taught the same way since the application will not allow them to take the other path.
Comprehensive process layer
Some low-code platforms enable you to create an ERP with business process management (BPM) layer. As a result, you can build specialized application that fits your department, process and business models.
Your team can work together and facilitate collaboration thanks to the cross-department workflow. When you change a part of the process, it will be updated automatically and notify all users involved, ensuring a seamless communication.
Integration possibilities
Low-code platforms can serve as an integration platform, connecting your ERP system to data from various sources, including legacy and cloud systems. Its pre-defined connectors can make IT architecture cleaner and technical integration easier.
Higher technology bridge
Advanced low-code platforms can serve as a gateway to cutting-edge technologies such as artificial intelligence (AI), the internet of things (IoT), and augmented reality (AR). These add-ons can significantly increase the value of your ERP system and improve overall work efficiency.
Benefits of using a low-code ERP system
According to Gartner, this new era of ERP is characterized by “enterprise business capabilities… [which] facilitates the rapid development and adoption of new applications and capabilities.”
This statement emphasizes the importance of switching to ERP customization. Previously, a change or customization would take several months; if it weren’t perfect, it would take a few more months before the next change cycle could begin.
1. More personalization with low-code ERP
ERP becomes more usable and practical when it is personalized. What a data entry clerk requires will differ significantly from what business users need.
Users will benefit greatly from this. They can view, filter, and create reports. Using low-code for the ERP system will increase employee productivity in the long run since it leverages and encourages employees’ creativity in tech creation. For instance, customization features allow the process to be baked precisely how you want it, reducing reliance on the vendor.
2. Low-code ERP increases agility and adaptability
To compete today, you must have business agility and market speed. Your customers are online, and your employees are working on their phones. If you continue relying on an older on-premises ERP system, you may miss out on opportunities.
Rapid change necessitates frequent iterations. Being on a single low-code ERP platform simplifies the IT stack and allows your IT staff to concentrate on more critical tasks. Giving the business user more power will enable you to make strategic changes quickly.
For example, manufacturers, distributors, and suppliers are facing unprecedented challenges during the COVID-19 crisis. With a low-code ERP solution, your company can quickly enable new product lines to make things like face shields and hand sanitizer. You can also be more flexible in allowing executives to work from home.
- Discover how: Low-code And Agile Development: A Match Made In Heaven
3. Increase productivity and collaboration with low-code ERP
Perhaps one of the best low-code advantages is its flexible integration. Many legacy systems’ integration is limited or too complex that it needs time to succeed. This leads to a separate toolset for different departments and workflow.
It isn’t a big problem at first. But once the process gets more complicated, the data gets larger; you need to export/ import more files and switch back and forth applications; that’s when the burden comes in.
With low-code ERP, you can easily integrate it with the existing system. Some even create a new CRM or database within the chosen low-code platform to align perfectly with the ERP. By automatically transferring and synchronizing data between software, you save time. And best of all, increase your productivity since you know this process is safe and error-prone.
Another thing to note is ERP is not used by everyone but only by the departments that need it. With the ease of integration, people can seamlessly work together without interruption.
Limitations when using low-code for ERP development
The low-code, no code technology is still being developed. It’s understandable to have some challenges and limitations, namely:
It’s not that “easy” to use: Low-code is easy to leverage, but an ERP is not easy to build. So even though you can “drag and drop” your low-code ERP, custom coding is required for advanced features to fit your business operation. If you don’t have qualified technicians to do the job, you can outsource a custom low-code development service short-term, such as Synodus, with just around $20/hr.
Training is required: After the development, ensure your employees know how to maintain and upgrade the system as they wish. Whether you are working with a development vendor or using an in-house team, training is a plus.
The idea of vendor lock-in: Even though you can customize your low-code ERP, it still has to follow specific regulations and technical requirements provided by the platform provider. So, in case their regulation or code base changes, how will it impact your low-code ERP and other applications? This is something to consider, so discuss it with your platform provider first to see their suggestions before making the final decision.
On the other hand, remember to set user guidance and controls. Low-code is an open platform, which means anyone can alter its interface and back-end code. If anyone makes a few subtle changes daily, it will quickly be a “new and messy low-code ERP.” Most low-code platforms provide access control features, so remember to leverage this and determine who will be in charge of updating and maintaining it.
We also explained in detailed the benefits and drawbacks of low-code in this post: Breakdown The Low-code Benefits & Disadvantages For Businesses
Wrapping up
A low-code ERP platform is an option for improving and ensuring your system works with your business processes. It can bridge the gap between ERP systems and a company’s business processes. You can connect your people, processes, and technology with a low-code platform. Modifications can be kept separate from the ERP, allowing you to re-connect rather than re-write modifications when upgrading your system.
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