ERP MVP Development for SMEs: How to Prioritize Features
Building an ERP system might feel like a big task, but you can make it easier by starting small. With limited budget and time, focus on just the features you need now. Starting with a Minimum Viable Product (MVP) helps your business get working results sooner, and you can always add more later.
To prioritize ERP MVP features for SMEs, start with financial management (invoicing, expense tracking), then add basic CRM (customer data, order history), and simple inventory management (stock levels, reorder alerts). Focus on solving your biggest pain points first rather than copying large enterprise features. Skip advanced reporting and complex workflows until later phases
Now let's explore each step in detail to help you build an ERP system that grows with your business while staying within budget and timeline constraints.
What Is ERP MVP Development?
ERP MVP development means starting with a basic version of your enterprise resource planning system. You only add features your business truly needs to run. This helps you launch faster, spend less, and improve the system as you go. Most small and medium companies gain more from this method, since they don’t need the same complex tools as large corporations.
The MVP approach keeps things simple by focusing on your top business tasks first. You can have a usable ERP in 3-6 months. Start with basics like accounting, customer records, and tracking inventory. As your team gives feedback, you add more features when needed.
Many ERP projects fail because they try to cover everything at once.
Large companies have very different needs from smaller ones. With ERP MVP development, you build only what fits your company size and daily work. This means lower costs and a better fit for how you operate.
Why SMEs Need a Different Approach?
Small businesses need ERP systems that fit tight budgets and simple processes. An ERP MVP focuses on your key needs, delivering results in 3-6 months. You only pay for features you use, making it a practical and affordable solution. Your ERP can grow as your business grows. Start with essentials like financial tools or inventory tracking. Add advanced features later when needed. This approach avoids high costs and long timelines while building a system that supports your needs.
The Process of ERP MVP Development for SMEs
By focusing on your core needs and tackling one step at a time, you can build an ERP MVP that saves time, reduces errors, and grows with your business. This guide breaks down the process into simple, manageable steps to help you get started with confidence.
Step 1: Map Your Core Business Processes
Start by writing down how you handle sales, inventory, accounting, and operations. Note your daily tasks and the steps taken most often. These are usually the best candidates for automation.
Step 2: Identify Your Biggest Pain Points
Look for the core problems that slow you down or cost money—like doing data entry by hand, losing information, having slow processes, or struggling to make reports. Pick the top issues that matter most to your team and your customers.
Step 3: Start With Financial Management
Most SMEs benefit from simple accounting tools first. Track income and expenses, create and send invoices, keep tabs on payments, and run basic reports. Extras, like complicated tax tools, can wait until later.
Step 4: Add Customer Relationship Management
After testing it, store customer contacts in one place, keep track of leads, view order history, and log calls or emails. This keeps customer information organized so you can build better relationships, without getting lost in too many options.
Step 5: Include Basic Inventory Management
If you sell products, start with stock tracking, low-stock alerts, simple purchase orders, and basic sales reports. As your needs grow, you can add more advanced features.
Step 6: Plan for Integration
Your ERP MVP should connect to your current email, banking, online store, or accounting tools. Integration helps reduce errors and makes daily work smoother for your team.
What to Skip in the MVP?
When building your ERP MVP, focus on the essentials and skip unnecessary features. Adding too much too soon can slow progress and increase costs. Start with tools that solve your biggest problems, and leave advanced features for later when your business is ready. Here are some features to skip in the beginning:
- Advanced Analytics: Stick to basic reports; detailed insights can come later.
- Complex Approval Chains: Use simple workflows to keep things moving.
- Multi-Location Options: Focus on one location before expanding.
- Advanced Manufacturing: Start with basic inventory and production tracking.
- HR and Payroll: Use standalone tools until your team grows.
- Full Document Management: Stick to simple file storage for now.
Skipping these features keeps your ERP MVP simple, affordable, and quick to implement. As your business grows, you can add these tools to meet new needs without overwhelming your team or budget.
How to Validate Your Feature List
To ensure your ERP MVP meets your needs, review your feature list carefully. Focus on what solves your biggest problems now, not what might be useful later. This approach keeps your system simple, effective, and aligned with your business goals.
Start by talking with your team. Ask them which tasks take the most time or cause the most frustration. Their input helps you prioritize features that will make the biggest impact. Also, check what similar businesses use to see if you’re missing anything important.
Next, review your data. Look at which reports or tools you use most often. Features that help manage this data should take priority. Finally, think about your customers. Choose tools that improve their experience, like faster service or better communication.
Building vs. Buying Your ERP MVP
Choosing between building or buying your ERP MVP depends on your needs, budget, and timeline. Building a custom system offers full control and tailored features but requires more time and money. Buying a ready-made solution is faster, often cheaper, and works well for most SMEs.
Option | Pros | Cons |
Building | Fully customizable to your needs | High cost and long development time |
| Scales perfectly with your business | Requires technical expertise and resources |
Buying | Quick to implement | Limited customization options |
| Lower upfront cost | May include features you don’t need |
| Comes with vendor support and updates | Dependence on vendor for changes |
For most SMEs, buying a modular ERP system is the smarter choice. Look for vendors offering flexible pricing, easy customization, and reliable support. This approach saves time and money while giving you the tools to grow your business.
How to Measure Your MVP Success?
your ERP MVP’s success shows if it’s delivering real value. Focus on key areas like time saved, fewer errors, team usage, and customer satisfaction. Clear goals help you track progress and make improvements.
Checklist for Measuring Success:
Time Saved: Compare task times before and after using the system.
Fewer Errors: Track mistakes in data, reports, or processes.
Team Usage: Check how many team members actively use the system.
Customer Feedback: Ask if service or communication has improved.
Cost Savings: Calculate money saved by automating tasks or reducing errors.
Revenue Growth: Measure any increase in sales or efficiency-driven earnings.
Tracking these metrics helps you see if your MVP meets its goals. If it’s not working as expected, use the data to adjust. A successful MVP should save time, cut costs, and make work easier for your team and customers.
Common Mistakes to Avoid
Avoiding common mistakes during your ERP MVP rollout can save time and money. Rushing the process, skipping planning, or ignoring user feedback often leads to costly errors. A thoughtful approach ensures your system works smoothly and meets your needs.
Adding too many features at the start is a common issue. Focus on solving your biggest problems first. Extra features can slow progress, increase costs, and overwhelm your team. Start small and expand as your business grows.
Skipping proper planning and testing can cause major setbacks. Map out your goals, timelines, and priorities before starting. Test every feature thoroughly to catch issues early. This ensures a smoother rollout and fewer surprises.
Ignoring user input or skipping staff training can hurt adoption. Involve your team in the process and listen to their feedback. Train them well so they feel confident using the system. A well-prepared team ensures your ERP MVP delivers real value.
Budget Considerations
Planning your ERP MVP budget requires more than just focusing on the upfront cost. Expenses depend on user numbers, selected features, integration needs, and any special requirements. User numbers and features are the biggest cost drivers, with more users increasing licensing fees and advanced features adding to development or subscription costs. Starting with a smaller user base and essential tools can help keep expenses manageable, with the option to expand later as your business grows.
Integration and customization can significantly impact your budget. Connecting your ERP to existing systems or tailoring it to meet specific needs often requires additional time and money. Choosing a solution with flexible integration options can help avoid unexpected expenses. It’s important to prioritize features that solve immediate problems while leaving room for future scalability.
Don’t overlook ongoing costs like hosting, updates, and support, as these can add up over time. Look for vendors with transparent pricing and scalable plans to ensure your ERP MVP remains affordable and effective. Planning for these future expenses ensures your system continues to deliver value without straining your budget.
Final Note
overspending. Focus on essential tools like financial management, basic customer tracking, and inventory control. These features address immediate needs and set a strong foundation for growth.
Adding features too soon can complicate your system and increase costs. Expand only when your business truly needs it. This approach keeps your ERP simple, effective, and aligned with your goals. A modular system makes it easier to scale as your business evolves.
Involve your team at every stage. Their feedback helps you prioritize features and avoid unnecessary complexity. Validate your decisions by testing the system thoroughly and ensuring it meets both team and customer needs. A well-planned rollout ensures smooth adoption and long-term success.
Ready to take the next step? Digitomark can help you design and implement an ERP MVP tailored to your business. Our team ensures you get the right tools without the stress. Contact us today to start building a system that works for you.Frequently Asked Questions
- What is an ERP MVP?
An ERP MVP is a basic version of an ERP system. It includes only essential features to solve key business problems and test usability before scaling. - Why start with an ERP MVP?
Starting with an ERP MVP saves time and money. It focuses on solving immediate needs without overcomplicating the system. - How to prioritize features for an ERP MVP?
Prioritize features by identifying business needs. Focus on financial tools, customer management, and inventory tracking first. - What are the benefits of an ERP MVP for SMEs?
An ERP MVP helps SMEs streamline operations, reduce errors, and improve efficiency without high upfront costs. - How to involve the team in ERP MVP development?
Involve the team by gathering feedback on pain points. Use their input to prioritize features and improve usability. - What mistakes to avoid when building an ERP MVP?
Avoid adding too many features, skipping planning, ignoring user feedback, and not testing the system properly. - How to measure ERP MVP success?
Measure success by tracking time saved, errors reduced, team adoption, and customer satisfaction. Compare results to set goals. - What are the costs of an ERP MVP?
Costs depend on user numbers, features, integration, and support. Budget for future expenses like hosting and updates. - How to scale an ERP MVP?
Scale an ERP MVP by adding features as business needs grow. Use a modular system for easy expansion. - What to look for in an ERP vendor?
Look for vendors offering flexible pricing, good support, easy customization, and regular updates to ensure long-term value.
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