Step By Step ERP System Development Process

January 6, 2023
step by step erp system development process

The ERP system is one of any business’s most important and complex components. You must ensure that the ERP system development process follows industry standards and best practices to ensure that it meets all user requirements and is cost-effective for the organization.

System Requirements Definition and Analysis of Functional Specifications

You should define the system requirements before you start working on the ERP system development process. A system requirement is a statement of what the system needs to do and how it will do it.

A functional specification is a document that describes what your software should be able to do when implemented in a specific way and which defines all necessary inputs and outputs for each task or operation involved in its process.

It’s important to understand that functional specifications and system requirements are not just technical documents. They’re also marketing documents because they tell people why customers need their products—and why there’s no other product like yours available elsewhere!

Feasibility Study

A feasibility study is a project-specific analysis determining the cost and schedule for implementing an ERP system. It’s also known as “validation,” but we’ll use the word “feasibility” because it’s more specific. The main purpose of this type of project is to gain insight into how your organization can meet its goals with an ERP implementation in place.

Simulation Modeling

Simulation modeling is the process of testing the feasibility of an ERP system. It is a simulation of the real world in a controlled environment, where you can test your software and hardware without worrying about how it will work when implemented.

It’s important because you want to know if there are any bugs before implementing something new into production. You also want to ensure that your system can scale as needed during growth or contraction periods.

ERP solution

Development of the ERP System Architecture

The ERP system architecture is the blueprint of your ERP system development process. It defines how all its components will interact with each other and outside systems.

The ERP system architect develops this high-level design by:

  •  Listing all business processes that need to be automated
  • Identifying which systems are needed to support those processes (such as accounting and CRM)
  • Determining what information needs to flow between these systems (e.g., order processing requires orders from customers, inventory management requires suppliers’ inventories)

Once you have this information in hand, you can prioritize tasks for ERP system development based on their impact on your existing workflow model.

Designing the ERP System

The design process starts with defining the scope of the project. This involves identifying all requirements that need to be addressed for your ERP system to meet its goals. Make sure they are included in your early-stage planning.

The next step is designing functional requirements: what will be done with this software? How will it work? What actions will users take when they use it?

Then you can start considering technical requirements. It addresses how to build something that works well enough so that users won’t have any problems using our product effectively.

Programming and Coding of the ERP Solution

Programming and coding is the process of converting the design into a working model. Developers build the ERP system using programming languages like Java, SQL, C++, and other related tools like Eclipse, NetBeans, etc. The main focus of this process is to ensure that you implement all functionalities correctly according to their requirements. In this way, you can use them in future scenarios without any hiccups or issues.

System Testing and Debugging

Testing and debugging are part of the development process but are not the only steps.

  • Testing: Testing is important to ensure that your system works as expected. If you’ve ever been in an operating room, you know how important it is for the doctors and nurses on hand to test each patient before surgery begins. The same goes for software—you want to make sure that your software runs flawlessly before using it on real-world data sets or releasing it into production environments.
  • Debugging: Debugging involves finding out why something isn’t working as expected so that you can fix it quickly and avoid any further issues with your product’s performance or reliability.

User Acceptance Testing (UAT)

User acceptance testing (UAT) is a test of the system to see if it meets the user’s needs. Users or third-party can perform it.

The purpose of UAT is to verify that your ERP system functions as intended and provides all relevant information to support operations. Your development team will perform this step after installation. Also, they must complete functional testing before production deployment.

You need to know what kind of feedback you’ll get from this phase.  Because it will help determine whether you need to make any changes before moving forward with implementation. Under certain circumstances, there are other areas where improvements could be made based on customer input from this stage onward!


The ERP system development process steps can be long and challenging, but it is worth the effort. The right ERP solution can help your business grow and improve how you do business. Therefore, review the listing of software development companies like InvoZone that offer brilliant ERP solutions without compromising quality.