The research found that last year, as many as 81% of companies had either initiated the process to implement an enterprise resource planning (ERP) software or had already successfully implemented it. This statistic goes on to show just how important these systems have become for business. But exactly what is driving this popularity? Well, an ERP software serves as the principal control hub that unites processes and departments, thus empowering organizations with full visibility into the business. And since they link all departments' systems, ERP systems also eliminate redundant technologies. This organization-wide integration also allows such software to gather data from all divisions and then leverage it help improve the business' productivity.
But much like any other technological tool, ERP systems are also continuously evolving, thanks to myriad advancements in the relevant technologies. This, in turn, means a crucial question that executives must answer: should you build your own custom ERP solution or opt for a read-made option? If you too are faced with a similar situation, here's a quick guide to help you decide which strategy is better for your business.
1. Ready-Made ERP Software
The market is brimming with an abundance of ERP solutions, which, means an easy availability of offerings that seemingly meet the business' needs. Unfortunately, it may not always be the best choice for business.
Unless one painstakingly evolves all vendors of their choice, it is unlikely you will realize just how tedious and costly it is to implement and customize off-the-shelf ERP systems. In fact, myriad CIOs have admitted that they were simply not prepared when it came to dealing with the challenges associated with implementing store-bought ERP.
Yet another issue with read-made ERP software is their inability to scale and adapt. For an evolving company, it is imperative that the software it relies on must be able to grow along with the business. One of the most glaring shortcomings of such ERP solutions is their inflexibility. In fact, most canned ERP solutions in the market do not offer any scope for significant changes. This eventually translates into additional costs as well as delays.
2. Custom-Built ERP Software
Before we delve into the details of custom-built ERPs, we must admit that they are laborious and expensive. With that being said, the fact remains that a tailored ERP system stands to deliver countless benefits over time.
Now, tailored ERP software is aimed at suiting the business' workflow and also cuts down the time spent for training employees since the solution is based on the business as well as its employees' practices. Furthermore, such solutions are novel and aren't burdened with needless features. And considering the fact that most organizations don’t use roughly 60 to 70% of their ERP systems, it makes sense to pay for only features and functions that you will definitely need and use. And that's not all -- it is also easier to integrate tailored ERP software into a broader selection of databases and applications.
Furthermore, since different departments across the company typically have varying planning needs and file reports in unique ways, it necessitates different ERP capabilities. How a custom ERP solution helps in this context is that it enables the business to put together a single, all-inclusive platform instead of depending on multiple platforms.
The above discussion shows that a custom ERP software is the better choice for businesses. However, to ensure that you get an ERP software of high quality, it is important to first, carefully analyze the business' needs and then find a reliable company that offers excellent enterprise application development solutions, such as Rishabh Software. This is important because a qualified team can help adapt the vision in accordance with the company's requirements and deliver considerably better results.
Kaushal Shah manages digital marketing communications for the enterprise technology services provided by Rishabh Software.