Best-of-Breed or Best-of-Suite?
The desire to use the standard functionality of the ERP system is high on the agenda. Goodbye to outdated, in-house developed customizations and large, expensive upgrades. Instead, we welcome a digitally transformative ERP platform that supports the business in its standard version and updates automatically.
What do we really mean when we use the word “standard”?
Is it the ERP system as it is:
Best-of-Suite? Is it the standard system with customizations? Could it also be the standard system with business-supporting functionality placed in Best-of-Breed add-on solutions, which is standard in itself? Here, we focus on the three approaches to standard and their advantages and disadvantages.
1. Best-of-Suite: Simplicity and operation benefits
The pure standard ERP solution provides system and operational benefits as it reduces complexity and potential integration issues.By avoiding add-on solutions, the company can achieve a more stable and maintainable solution. However, the downside is it may be challenging to meet all the specific functional requirements the business might have, which can limit the usability of the system.
ADVANTAGES:
- Simplicity
Sticking strictly to the ERP system’s standard features avoids the complexity of external add-ons.
- Ease of Maintenance
No integrations mean fewer problems, easier maintenance, and less risk of system failures.
- Operational Benefits
Reduced risks of integration issues and system failures.
DISADVANTAGES:
- Limited Functionality
It can be difficult to cover all specific business needs with standard ERP functionality alone, limiting your business growth opportunities.
- Lack of Specialization
Without external add-ons, the system may lack the specialized functions needed for certain industries or processes.
- Rigidity
Less flexibility to adapt the solution to unique business requirements.
2. ERP system with customizations: Coding at the expense of standard
Customizing the ERP system can cause maintenance issues and potentially increase complexity. However, it might be necessary for meeting specific business requirements. It’s important to balance the necessity of customizations with the risk of creating a complicated and difficult-to-maintain system.
ADVANTAGES:
- Specific Customization
Custom code can meet specific business requirements.
- Control
The business has full control over changes and functionality.
DISADVANTAGES:
- Maintenance Issues
Adding custom code leads to increased maintenance issues and costs.
- Increased Complexity
More customizations make the system more complex and difficult to manage.
- Upgrade Issues
Customizations create difficulties when upgrading the ERP system, as they need to be reused or updated. More testing is often required than when the functionality is outside the ERP system.
- Risky
Increased risk of errors and system failures due to extensive customizations.
- Costly
Coding changes are costly and time-consuming due to multiple iterations in the testing phase, all of which must go through a fixed implementation procedure at each review.
3. Best-of-Breed: Business support and scalability
Integrated software from independent software vendors (ISVs) for output management, for example, can be beneficial. They offer advanced functionality and specialized solutions to meet unique business needs. This approach to “standard” allows companies to extend their ERP solution without coding and without changing the core of the ERP system, creating a robust and flexible system.
ADVANTAGES:
- Advanced Functionality
Integrating external ISV solutions can, without affecting the standard, extend the ERP system and add specialized functionality to meet unique business needs.
- Simple Integration
ISVs are often certified, making it relatively easy and reliable to integrate their solutions with the ERP system.
- Flexibility
Companies can add additional functionality without changing the core functionality of the ERP system. The change process involves configu[1]ration rather than development, which is much more agile. Changes can be configured, tested, and approved almost immediately.
DISADVANTAGES:
- Complexity
Integrating multiple add-on solutions can make the system more complex and harder to manage.
- Dependency
Businesses can become dependent on several external vendors for maintenance and support.
- Potential for conflicts
The more ISV solutions included in a future ERP system upgrade, the more planning and control this requires.
When implementing a new ERP system, there are several specific requirements for Output Management that should be included.
The closer you are connected in time to your customers and suppliers, the more business-critical Output Management is.
Good Output Management can ensure that the customer avoids a number of potential challenges immediately after the ERP go-live.
Get more insights into “functionality in the standard ERP system” and “functionality in the ERP system with standard Best-of-Breed.
