Infographic: Custom Software vs. Pre-Packaged Solutions—A Side-by-Side Comparison
Key Takeaways
Discover the key differences between custom and off-the-shelf ERP software with our most comprehensive infographics complemented by a framework to select the right ERP solution for your business. Learn the key factors that make these two solutions different, and use this guide as a checklist to choose the right ERP solution for your business.
Navigating the Maze of Business Software: Key Questions and Definitions
With the abundance of business software solutions in the market, organizations often struggle to find the perfect solution for their business. What features are of the most importance for my business? Which software offers a good balance of functionality and cost? How do I make sure I don't overpay for functionalities that bring no value to my business? All these are the most frequently asked questions that decision-makers want to have answered.
Knowing your options is the first step on the way to determining the best fit for your business. Understanding the difference between those options is the second but as important. Before we dive into the details, let’s start by defining what ERP software is.
What is ERP Software?
ERP software is a business management tool organizations use to manage a variety of day-to-day operations. The software is often referred to by other names, such as Business Management Software, Integrated Business System or Business Resource Planning Software, among others. However, the core concept remains unchanged: it serves the role of a central control panel from which all business operations are monitored, managed, and directed.
The core idea of ERP software is to help businesses manage and streamline their operations by providing real-time access to data and automating key processes.
Custom vs. Off-the-Shelf ERP Software: A Comparative Overview
There are two major types of ERP software on the market: custom ERP software and ready-made ERP solutions. We recommend reading our blog on the classification of ERP systems based on their deployment model and adaptability if you would like to further explore the different types of ERP systems.
This blog and the accompanying infographic will focus on the comparative overview of custom and ready-made ERP solutions. So, what is custom and ready-made ERP software? Here’s a brief but informative definition for both:
Key Criteria Differentiating Custom and Ready-made ERP Solutions
If you are looking for an ERP system for your business, there are certain criteria that differentiate the two systems from one another. Using these criteria will help you understand what is more relevant and will be of the most value to your business.
Use our comparative criteria-based overview provided below to understand what type of ERP software is best suited for your business.
It is important to note that both custom and ready-made ERP systems serve the same fundamental purpose: to streamline various business processes and maximize the operational efficiency of an organization. However, the approach and adaptability of each system are different, as seen from the infographic provided above. Organizations need to consider all the pros and cons of each system to make an informed decision.
What Are the Benefits of Custom ERP Software?
Choosing the right business management software is critical for any business as it will have an impact on everything, from daily operations to long-term strategic goals. Therefore, it is important to understand the benefits of each individual solution under consideration before making the final choice.
As mentioned above, both custom and ready-made ERP solutions have the same goal in mind. However, to grasp the true value of each, it is important to understand the specific benefits each solution brings to the table. Below, we provide a comprehensive infographic on the benefits of custom ERP software.
What Are the Advantages of Off-the-shelf ERP Solutions?
As unique as custom ERP solutions can be, they may not necessarily cater to the needs of every business. Certain organizations may find ready-made solutions more cost-effective and efficient for their particular circumstances.
Moreover, the total cost of ownership of custom ERP software can be higher than that of a ready-me one, being a decisive factor for many small-to-medium size organizations. Below, we present a detailed infographic highlighting the advantages of ready-made ERP solutions.
Custom vs. Ready-made ERP: What’s Best for My Business?
As we keep exploring custom and ready-made software solutions in this blog, it may seem challenging to choose the best solution for your business. Choosing the best business management software that best fits your business can be challenging. With the benefits each option offers, choosing the right one becomes even more complicated.
However, despite all the challenges, it all boils down to evaluating your organization’s particular needs, resources and goals. Below is a framework to guide you in your decision-making process:
- Define your needs
Identify the general business objectives you want to achieve through implementing the new software. Decide which features and functionalities will be essential to achieve your business objectives.
- Decide how much flexibility you require
Decide how flexible you want your software to be. Are you anticipating business growth and looking for an ERP system that can scale with your expansion? Or do you need a solution with standard modules to handle only the essential daily operations?
- Consider development and implementation times
Be aware of the additional development time required for custom ERP software. If you need a business management solution urgently, consider ready-made ERP software.
- Assess integration capabilities
Consider the number of applications your new ERP software will need to integrate with and base your decision on that. Custom ERP boasts broader integration capabilities thanks to its tailored nature.
- Assess support and maintenance needs
Ready-made ERP support and maintenance updates are released on a scheduled basis. The support of custom ERP software is provided by the development team on an as-needed basis.
- Set the budget
Determine how much you are ready to invest in your business management solution. Custom ERP software generally costs more than out-of-the-box solutions, but it offers more flexibility and customization freedom.
- Consider the vendor’s expertise and reputation
Select a vendor with a proven track record in developing business management solutions specific to your industry to ensure you partner with an expert in the field.
Final Thoughts
The advantages of implementing ERP software are massive. From optimized workflow to improved decision-making, organizations across various industries experience streamlined operations, enhanced data accuracy, and greater operational efficiency, paving the way for strategic growth and competitive advantage.
When navigating the landscape of ERP software, it is important to choose the solution that best caters to the needs of your business. While both options boast several advantages, the final choice should always be guided by the unique requirements of your organization.
We hope our visual guide has helped you objectively evaluate the benefits of both custom and ready-made ERP solutions, assisting you in making an informed decision.
