Virginie Taborowski
Content Specialist
Last updated on
14.8.24
Best Practice
The role of low-code ERP in digitizing SMEs
7
min
Table of contents
Digitalization presents SMEs with the challenge of efficiently modernizing business processes and making them flexible. While traditional ERP systems offer a basic structure, they are often too rigid and complex for the fast-moving business world.
This is where low-code ERP comes in: an innovative solution that enables companies to adapt and expand their ERP systems with little programming effort.
This article highlights the role of low-code ERP for SMEs and shows how low-code helps companies become more agile in the digital landscape.
What is a low-code ERP?
Low-code ERP (Enterprise Resource Planning) offers companies a flexible solution to manage their resources and optimize their business processes. Low-code means “little programming effort” and in this context means a system with which companies develop their ERP themselves.
In contrast to traditional ERP systems, low-code ERP uses visual development tools and drag-and-drop editors to make adjustments and extensions without in-depth programming knowledge. This allows companies to react quickly to changes and design tailor-made solutions for their specific requirements.
How does a low-code ERP work?
Low-code ERPs are based on a cloud platform. Visual elements are available within the platform, which can be used according to the modular principle to create your own databases.
A low-code ERP optimizes resource usage by digitally mapping business processes and integrating them into a central database. With intuitive drag-and-drop editors, individual adjustments can be made quickly in the low-code platform without the need for extensive programming knowledge.
The modelling is carried out visually using various components such as data fields, diagrams and spreadsheets, which can be flexibly placed. This makes it possible to develop tailor-made ERP systems that meet specific industry-specific standards.
However, before creating a low-code ERP, a thorough as-is analysis is required to determine the required features. Interfaces to third-party systems must also be carefully checked for individual ERP software.
The importance of low-code ERP
Low-code ERP makes a significant contribution to the digitization of SMEs. Classic ERP systems quickly push companies to their limits. However, in order to react quickly to changes, you need agile and innovative solutions that can be tailored to your own business processes. The solution for this is: low-code ERP.
By using low-code platforms, so-called citizen developers, who are familiar with internal processes, can program the ERP system independently. These developers don't need deep programming skills and can implement workflows directly using visual tools such as drag-and-drop editors.
This eliminates dependency on standardized industry solutions and expensive development resources. This flexibility is particularly valuable because it Enables companies to adapt dynamically to new market conditions. Thanks to low-code, individual ERP software therefore has many advantages.
Although low-code ERP cannot completely replace traditional ERP systems, it offers an efficient way to implement specific requirements quickly and effectively. This makes companies more agile and equips them for the challenges of a constantly changing business world. According to Gartner By 2024, 65% of developments will be carried out using low code.
Adapt or redevelop? The various forms of low-code ERP
If you want to develop a low-code ERP, you can't avoid dealing with the platform. While no programming skills are required, a certain amount of technical know-how is required — at least if you want to redesign the ERP from scratch.
To become aware of the possibilities of a low-code ERP, you should know the various features:
Low-code ERP customizing
You don't have to completely redesign your ERP system. Instead, you can rely on integrated customizing frameworks offered by leading ERP manufacturers such as SAP and Microsoft. These systems make it possible to individually adapt and expand existing ERP systems.
Low-code ERP extension
Companies with older and less flexible ERP systems can use a low-code ERP extension. Here, they quickly and easily develop their own low-code apps using external platforms to expand the functionalities of the existing ERP system. These apps communicate with the back-end system via defined interfaces.
Low-code ERP
The third option: Actively develop a complete ERP solution with a low-code platform. Through these platforms, companies can adapt their systems precisely to their needs and create modern, individual solutions that are better tailored to their specific requirements.
What are the benefits of a low-code ERP?
Companies that rely on standard ERP systems are limited in their scope of action and adjustment. Changes in structure or functionality are difficult to make and often cost huge sums of money. With a low-code ERP solution, on the other hand, you benefit from:
- Flexibility: Low-code ERP can be adapted to your own processes and procedures on your own. This makes it possible to implement industry-specific solutions from the construction industry to personnel management.
- Scalability: As your processes grow, low-code ERP grows with you. Scalability is critical in pretty much every industry, which is why the agility of low-code platforms is increasingly in demand.
- Ease of use: Visual editors and drag-and-drop functions enable citizen developers to adapt ready-made templates in low-code ERP or implement completely new solutions themselves.
- Mobile working: Whether in an architecture office, on construction sites or in social projects: mobile working is becoming increasingly important. Offline access via app is therefore an essential feature for low-code ERPs.
- Data visualization: In traditional ERP systems, data visualization and analysis are only possible to a limited extent. Reports are an important criterion for making success-relevant decisions. Thanks to the intuitive operation, data reports can be easily created in a low-code tool using the modular principle.
Weak points of a low-code ERP
Whether a low-code platform is suitable for your own company is a very individual decision. The savings in personnel and development time are enormous — but the effort required to develop individual solutions should not be underestimated. Companies should therefore always clarify in advance which is the most efficient route and whether they can provide the personnel resources.
Depending on the complexity of the project, it may be advisable to from experienced partners to be taken by the hand. For example, when data migrations need to be carried out or when it comes to implementing Interfaces for connecting third-party systems goes. Ninox users have access to a broad network of experts and partners who are familiar with both the organizational and technical mapping of processes.
Conclusion: Drive ahead with the digitization of your business processes yourself
Low-code ERP provides SMEs with a flexible solution to efficiently manage resources and business processes. With visual tools and simple customization options without in-depth programming knowledge, companies can react quickly to changes and develop tailor-made solutions. This technology strengthens the agility and competitiveness of SMEs and effectively supports them in digitizing their business processes.
