Ambitious businesses dream of expansion, launching innovative products, and broadening their market reach. These growth goals, however, can quickly expose the limitations of an outdated Enterprise Resource Planning (ERP) system.
This is because at the heart of successful growth lies scalability and a truly scalable ERP adapts seamlessly to increasing transaction volumes, expanding user bases, and evolving business needs. It should effortlessly handle the complexities that come with growth, rather than becoming a bottleneck.
However, many businesses find their ERP systems riddled with complications that hinder their progress. This misalignment leads organizations to consider customization, but it carries hidden financial, operational, and strategic costs that can quickly escalate and hinder innovation and scalability of the organization.
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Emerging platforms like Nextworld’s no-code platform offer an attractive third option to extend functionality without coding or outsourcing customizations to keep businesses agile and on a sustainable growth path.
The challenges of traditional ERP customization
Businesses typically consider ERP customization for competitive advantage, legacy system integration, regulatory compliance, or unique/automated business processes. However, though customizations offer tailored solutions that align with unique business processes, they come with significant costs.
For example, the initial development costs can be significant and potentially account for 10-30% of the total ERP implementation budget for moderate modifications. Moreover, the financial impact extends beyond initial development, with ongoing maintenance and support costs ranging from $10,000 to $100,000 annually to keep customizations functional.
Due to the complexity of the modifications, customization budgets can often spiral out of control. Indirect operational costs such as downtime during implementation and upgrades, steep learning curves for employees, and rigidity also hinder an organization’s agility. Additionally, heavily customized ERP systems can encumber business innovation, leading to missed opportunities.
Emerging platforms: A modern alternative
Emerging platforms like Nextworld’s no-code platform offer a viable alternative to traditional customization. They provide the flexibility and scalability that businesses need without the drawbacks listed above.
These platforms empower business users to create custom applications and workflows outside the ERP system without requiring coding. By leveraging intuitive interfaces, end users in any department can design solutions that address their unique needs. No-code platforms reduce development time, eliminate the need for external consultants, and make it easier to adapt systems as business requirements change.
How emerging platforms optimize ERP systems
No-code platforms enable non-technical users to build custom applications or workflows that integrate with ERP systems without complex programming. They boost transparency and agility by integrating with existing ERP systems and since they are cloud-native platforms, they also offer scalability and accessibility to enhance a business’s growth.
Emerging platforms utilize AI and machine learning to analyze historical data, detect patterns, and generate predictive insights. This helps organizations to raise their decision-making capabilities. Automating routine tasks with the ERP systems also plays a part in business growth by maximizing efficiency. Additionally, emerging platforms like the one offered by Nextworld, add a secure, decentralized layer to ERP systems, enabling more transparency and traceability within the system.
By embracing a clean-core ERP approach and leveraging no-code solutions, companies can stay agile, reduce costs, and position themselves for long-term growth. Modern platforms like Nextworld provide prebuilt, standard applications that allow organizations to get up and running quickly by serving as templates for building custom enterprise solutions. These platforms empower businesses to customize as needed without restrictions or incurring additional costs.
What this means for ERP Insiders
Embrace a “Clean ERP” approach. Using a modern platform offers a pathway for your ERP to become leaner, more flexible, and more agile. By minimizing core customizations, empowering users with no-code tools, and promoting a composable architecture, A platform removes the barriers to growth that legacy ERPs often create—helping businesses adapt and scale to their full potential.
Leverage no-code for rapid innovation. No-code development tools allow business users to create custom applications and workflows without extensive coding expertise. This accelerates development cycles, reduces reliance on IT, and enables rapid adaptation to market changes. This ability is crucial for businesses seeking to grow their business and maintain an edge in a competitive market.
Prioritize composable architecture. This approach facilitates seamless integrations with other systems and applications. By leveraging open APIs and pre-built connectors, businesses can create a unified data landscape, break down silos and enable informed decision-making that ultimately lead to business growth. This flexibility also allows companies to choose best-of-breed solutions and tailor their technology stack to specific needs.
