What is Low Code ERP? Challenges and Advantages Explained - 2024


Traditional Enterprise Resource Planning (ERP) systems are going through a big change right now, in a time when being flexible and coming up with new ideas quickly are not only benefits but also needs. Traditionally, these systems were single-piece, which meant they needed a lot of coding and a lot of IT resources to set up and keep up. This meant that companies were often stuck in rigid, expensive, and time-consuming processes. Today, however, the rise of low-code and no-code technologies is changing ERP in a big way. These technologies promise a future where any business can easily be flexible and productive.

Low-code ERP solutions are a nice change from traditional systems because they make development more open to everyone and make traditional systems much simpler and cheaper. Visual development environments let you build apps with drag-and-drop interfaces, so you don’t need to know a lot about coding to use this current method. As a result? More adaptability, better integration, and faster responses to changes in the market, all while keeping strong usefulness. This blog talks about the growing field of low-code ERP systems, how they are changing the future of business planning, and what makes them better than traditional frameworks.

What is Low-Code?

Low-code is a software development approach that reduces the need to write code manually, streamlining the creation and deployment of applications. It doesn’t require a lot of coding because it uses visual interfaces with easy logic and drag-and-drop features instead. This means that developers of all skill levels can use it, even those who aren’t good at traditional programming. By abstracting and automating every step of the application lifecycle, low-code platforms make it possible to create and build software quickly. This method speeds up the development process and lets businesses make quick changes to solutions to meet their changing needs. It also makes standard software development less expensive and complicated.

Introduction to Low-Code ERP

Enterprise Resource Planning (ERP) tools are important for running a business’s main tasks, like keeping track of inventory and the supply chain, as well as handling finances and dealing with customers. ERP systems used to be custom-built, which meant they needed a lot of code and a lot of IT resources. This made them often rigid and expensive to keep up to date. Low-code and no-code technologies, on the other hand, are changing the ERP landscape by making solutions that are more flexible, cheaper, and easier to update and manage.

The Evolution of ERP Systems

Since they were first created in the 1960s as Material Requirements Planning (MRP) systems, ERP systems have changed a lot. These systems were first made to keep track of manufacturing processes. Over the years, they’ve grown to include many more back-end and front-office tasks, turning into the complete ERP systems we know today. This change has happened at the same time as changes in technology, like the move to cloud computing and the popularity of mobile and web-based apps.

Challenges with Traditional ERP Systems

Enterprise Resource Planning (ERP) systems that are used by many big companies have been the backbone of many for decades, but they a lot of problems:

  • Complexity: Most of the time, traditional ERP systems are hard to set up and keep up to date. They need to be changed a lot to fit the needs of each company, which can take a lot of time and cost a lot of money.
  • Cost: Many businesses, especially small and medium-sized ones, can’t afford to buy and set up a standard ERP system at first because of how much it costs. On top of that, maintenance, upgrades, and help all come with ongoing costs.
  • Rigidity: Most of the time, traditional ERP systems are fixed and can’t be changed. They are made to automate business processes that are already in place, which can make it hard for companies to change with the times and meet new customer wants.
  • Integration Challenges: It can be hard and expensive to connect standard ERP systems to other systems and programs. A lot of businesses have trouble integrating new IT systems with their old ones without any problems, which leads to data gaps and wasted time.
  • User Adoption: Employees may find it hard to use traditional ERP systems if they aren’t familiar with the software or if they need a lot of training. Poor user adoption can make the system less useful and make people in the company unwilling to change.
  • Scalability:As businesses grow and change, traditional ERP systems may not be able to keep up. It can be hard to add new users, business groups, or functions, and you may need to make a lot of changes or upgrades.
  • Security Risks: Cybercriminals often go after traditional ERP systems because they hold private business data. To keep their ERP systems safe from data breaches and other cyber risks, businesses need to spend money on strong security measures.
  • Lack of Innovation: People have said that traditional ERP vendors don’t come up with new ideas as quickly as newer, cloud-based ERP options. Because of this, businesses may not be able to get the newest technology and features that will help them grow and stay competitive.

The Advantages of Low-Code/No-Code ERP

Low-code and no-code platforms give you more freedom and make it easier to use than standard ERP systems. Users can drag and drop components to make apps on these platforms, which use visual development environments. This method cuts down on the amount of code that needs to be done by a large amount. This makes system deployment faster and management easier. Here are a few specific benefits:

  • Ease of Customization and Maintenance: Visual interfaces and pre-built templates make it easier to build applications, which means that ERP systems can be changed to fit the needs of a business without the need for deep coding knowledge.
  • Seamless Integration: Low-code platforms often come with connectors and APIs that are already set up. This makes it easier to connect them to other software, which improves data flow and operational insight across departments.
  • Cost Efficiency: Low-code ERPs can greatly lower the costs of system upkeep and expansion by cutting down on the need for complex coding and frequent vendor involvement in upgrades and customizations.
  • Enhanced Scalability and Flexibility:Low-code ERPs are made to be easily scalable, so as a business grows, it can add features and functions without having to do a lot of rebuilding.
  • Agility: Companies that have shorter development processes can respond more quickly to changes in the market or operational needs. This helps them stay competitive in a world that is changing quickly.

Case Study: Schneider Electric's Adoption of Low-Code ERP


Schneider Electric operated with a complex legacy ERP system that was becoming increasingly cumbersome and costly to maintain. The system struggled with long development cycles for new features, and integration with other digital tools was both challenging and time-intensive.


The main challenge was to increase operational efficiency and agility across its global branches, ensuring that the company could quickly adapt to market changes and internal demands without escalating costs.


Schneider Electric turned to a low-code platform to modernize its ERP system. This platform enabled the company to develop applications much faster than before, using visual development tools that allowed non-technical staff to participate in the creation and modification of their systems.


The company utilized a low-code development platform to create and deploy a suite of customized applications that were integrated with their existing ERP system. These applications addressed specific operational needs such as inventory management, order processing, and logistics.


  • Increased Agility: Schneider Electric significantly reduced the time needed to develop and deploy new applications, from months to just weeks, enhancing their responsiveness to changes in business operations.

  • Cost Reduction: The low-code approach decreased the need for specialized IT skills and external consulting services, which reduced overall development and maintenance costs.

  • Improved Integration: The new applications were easily integrated with existing systems, improving data flow and operational transparency across departments.

  • Employee Empowerment: By enabling non-technical staff to build and modify applications, Schneider Electric fostered a more collaborative and innovative work environment.


Businesses are looking for ways to cut costs and streamline their processes more and more, so the move to low-code ERP systems makes sense and is bound to happen. These systems give companies the flexibility, customization, and ability to grow that they need today. Because they make program development more open to everyone, more people can help build and run their systems. This change is likely to keep happening as more businesses understand how flexible and user-friendly low-code and no-code solutions are.

When you think about updating your ERP system, think about these benefits and how they fit with the goals of your business. The right low-code ERP system could not only make your current tasks easier, but it could also help you deal with problems in the future more effectively. If you’re thinking about making this change, learning about the different low-code systems and what they can do could be the first step toward a more flexible and effective operational framework.

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