IT systems development: how to avoid costly mistakes

IT systems development: how to avoid costly mistakes

Developing IT systems is a strategic decision for a manager – where to invest money in the company to:

- reduce manual work,

- reduce errors,

- would achieve normal visibility.

This article is about, when you really need your own IT system, not another Excel or “ready-made SaaS” .

1. What does “IT systems development” really mean on the business side?

From a business perspective IT systems development means:

- define, which processes and data should be supported;

- decide, what these processes should look like (feeds, approvals, statuses);

- ensure that the system normally cooperates with existing (ERP, CRM, e-shops, warehouse).

This is not a question of technology or framework choices, but there are other important questions for the manager :

- Does the system remove critical bottlenecks?;

- Does it reduce dependence on specific people or Excel files?;

- Does it give better control and predictability?;

If the answer to these questions is “yes”, developing IT systems is an investment, not a cost item.

2. When is a ready-made tool enough, when do you need your own system?

In many cases a ready-made tool is good enough . For example:

- simple CRM for the sales team;

- ticketing system for internal IT problems;

- basic project management.

Your IT system usually becomes relevant when:

1. Processes are specific to the industry or your business model . Off-the-shelf tools start to get in the way because:

- processes should be adapted to the tool, not the other way around;

- a lot of things have to be done through Excel and emails.

2. Multiple systems must be connected into one flow , for example:

- CRM + ERP + production planning + e-shop;

- logistics partner systems + warehouse + invoices.

3. There are critically high requirements for data quality and traceability . Errors mean direct financial losses: contracts, SLAs, penalties, losses.

Questions for yourself:

- Where currently the systems do not work together and work is done with Excel files, PDF conversion and manual error correction; 
- Can an existing SaaS tool be configured to fully cover critical processes;

- Are these problems just about everyday convenience, or do they already affect margins, terms, etc.;

If, when answering these questions, you conclude that the systems do not provide the necessary support, there is reason to think about developing a customized IT system .

3. Typical types of IT systems in a company

To be clearer, IT systems can be divided into several categories.

3.1. Operational work systems. Tools in which people works every day :

- order processing;

- production planning;

- service requests;

- project and task flow.

Fast data entry, clear processes, and accountability are important here.

3.2. Information systems and registers. Systems that:

- maintains structured information (contracts, acts, equipment, incidents, resources);

- provides history and traceability ;

- allows you to create quick reports.

This usually requires the development of information systems that connect to ERP and CRM.

3.3. Integration and integration layer. If a company has multiple systems, a separate integration layer is needed that:

- connects ERP, CRM, e-shop, warehouse and logistics systems ;

- ensures that data in all systems is consistent and timely;

- determines which field is the main data source in which system .

This is where integration and API solutions are developed so that operational systems and information systems work as one common environment, rather than in separate islands.

3.4. Dashboards and reporting tools. Tools that aggregate data from operational and information systems and provide:

- dashboard for management on key indicators ;

- KPI monitoring for customers, products, projects or departments ;

- forecasts and comparison with plans .

The focus here is on developing IT systems for data analytics so that management sees current and reliable numbers without manual data collection.

4. How to prepare for IT systems development

For the project to move forward successfully, the manager must do their homework before negotiating with the developers.

4.1. Determine what problem you are solving. Not “need a new system”, but:

- we want to reduce X errors by N %;

- we want process Y to take 1 day instead of 5 days;

- we want one reliable data source in the Z domain.

If this cannot be clearly articulated, IT systems development turns into an endless list of feature requests.

4.2. Designate critical processes

- where exactly are delays, double or chaotic data entry occurring now ?

- where Excel and emails no longer keep up with the volume;

- where management lacks real transparency;

4.3. Define the system environment

- what systems are currently in place, for example, ERP, CRM, warehouse, e-shop, specialized tools ;

- which tool is inviolable, for example, ERP ;

- what definitely should not be duplicated in the new system ;

This directly affects how to integrate the new system with the existing ERP and CRM and how extensive the integration part will be.

5. How much does it cost and how long does it take to develop IT systems?

There is no single ready-made formula, but the manager should ask specific questions:

- How long is the IT system development process? to the first usable version (MVP);

- What is the approximate budget range , not “we'll see the price in the process”;

- What are the main risks and what can affect the price and term ?

Realistic view:

- the more integrations, the bigger the budget;

- the more unclear the requirements, the more changes and reworks later.

How do these types of projects work? Visual

Based on Vizual's experience, we develop IT systems for companies that:

- relies on Excel and PDF files , manual data processing and error correction on a daily basis;

- have found themselves in a situation where ERP and CRM are no longer able to cover critical processes;

- have realized that it is necessary customized solution for business processes .

What we do in practice:

- WEB systems development as a basic working environment for employees;

- development of information systems with registers, statuses, approvals;

- integrations with ERP / CRM / e-stores and other tools;

- dashboard and reporting tools management, based on real data.

The goal is to move from a chaotic, manual environment to an organized system where decisions are based on data.

What to do next?

- Write a summary about your company and the 3-5 critical processes that are currently holding back growth;

- Notes on where Excel, emails, other systems and programs are currently used ;

- Contact us and send this information to Vizual.lv ;

Based on this information, we can prepare a specific action plan for the development of IT systems with clear steps, deadlines and budget limits, so that your IT project is a well-considered business decision . Contact VIZUAL !