Write your own ERP? Are you Crazy!
I have been in the ERP space for several years, and I have actually had more than a few customers inform me that they had written their own ERP or they wanted to.
It is bad for organization if clients go compose their own! Well, that is true in such a way. It's bad for the customer's company for sure.
There are ample customers who need ERP systems (particularly cloud ERP like we sell) that a person more ERP sale would make a substantial distinction to my business.
The 2 Factors People Try and Compose an ERP
1: They had a bad experience before and seem like they require control over their ERP. The concept of producing their own seems less risky than selecting another bad ERP.
2: They believe ERP is too costly and they can write their own more inexpensively.
Let's handle factor 2 initially.
Writing your own ERP is not low-cost!
ERP systems are built from 1000s and 1000s of hours of programming. I don't think most small companies truly value this. Lots of hours of programming effort needs to go into developing a system.
Even truly basic MRP systems would take 2 to 3 "man-years" of effort to develop out to be usable.
A typical ERP execution in a small or medium service takes about 800 to 1000 hours. That's your personnel time (about half that of the specialists).
To compose your own good ERP, you require a developer.
Let's utilize $80,000 a year as an income. That is an extremely modest wage plus advantages for a programmer. You are either not getting a great developer (if they were excellent they 'd be working at Google) or somebody has no idea what they deserve.
To be practical, it will take 3 man-years of effort to build the ERP.
That is $240,000. You can get a truly good ERP delivered and set up for $240,000.
Isn't it More affordable than a routine ERP Implementation in the long run?
Let's take Characteristics Service Central as an example - because I know that really well.
No - it's not.
I'll post a link to a Characteristics 365 ERP rates guide at the bottom of this post. Let's consider a basically "typical" small or medium manufacturing company.
Executing something like Business Central is going to remain in the:
$ 2000-$ 3000 a month for the software
Maybe $100,000 for the application.
It will take about 6 to 8 months to do.
Your homemade ERP will not be usable for a minimum of a year. Possibly 2. You might have some incremental abilities, however 80% or more of your team will still be using manual systems for a minimum of 12 months.
The factor you need an ERP is to avoid Excel sheet hell and handbook processes.
Your ERP Never Ever Stops Costing you Cash
The difficulty is you own your ERP system. You can never ever fire your $80,000 a year developer.
They exist due to the fact that you are composing your own ERP. Your DIY ERP system will not have any of those features to begin.
Versatility and Personalization
The second reason that people wish to write their own ERP is that they have a bad experience the first time. This leads them to wonder about the ERP process and feel like they're much better off writing their own.
This is what I wrote in the original article about developing a DO IT YOURSELF ERP system in Microsoft Access.
Not long after your database is created and your purchase orders are going out to suppliers, you recognize you require to get things. Vendors are bothersome, in some cases they ship exactly what you wanted, in exactly the amount and at the rate on the PO - however often they do not. So as time passes the easy access database begins a perilous march towards something deadly - COMPLEXITY!
As time goes on it gets more and more complex.
Find an ERP you can Personalize Yourself
So what to do about this? You really do not want to be backed into a corner where you do not have alternatives.
Get an open-source ERP naturally.
Open source means that you can modify and personalize the ERP yourself. The source code of the ERP system is available for a programmer to make modifications.
SAP ERP
SAP ERP is actually more of an ERP shows language than it is an ERP. It is written in a recently improved language.
Conclusion
Get a real ERP system like SAP ERP. The effort you need to develop your own full-featured ERP will be stunning. Get a "seed" ERP system that you can modify.
You will never save money writing your own system.
You'll either supply a job for life to a programmer or you'll end up like a lot of consumers. With a barely working mess that you replace anyway.
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