Comparing off-the-shelf VS custom ERP solutions: Which is right for you?

Whether it’s a lack of integration between different tools or the outdated functional infrastructure based on rigid, manual workflows, scalability and flexibility are at their lowest points. It further renders the business incapable of changing with the market trends and adopting new strategies to deliver omnichannel customer experience and streamline operations. That’s why integrating the existing technical infrastructure with modern, advanced ERP (Enterprise Resource Planning) software is the most feasible solution, given the fact that it can eliminate data siloes, increase transparency, and automate several processes. 

Although it does sound like a relief, you first need to decide if you are okay with implementing off-the-shelf, pre-designed ERP solutions or would like to invest more in developing custom solutions for your business. Otherwise, it would hinder your planned budget, future goals and objectives, and overall business growth in the coming years. So, this below guide will take you through the benefits and disadvantages of both off-the-shelf and custom ERP development services so that you can make a well-informed decision for your business’s long-term vision. 

Off-the-shelf ERP solutions: Benefits and challenges

Off-the-shelf ERP software is pre-built with the major features or functional workflows most business will require to streamline their day-to-day operations and integrate the existing systems on a centralized platform. They do not require extensive development cycles or too much requirement planning. 

Advantages

1. As the ERP software is already pre-developed, it won’t take long to implement the same at the business core. Usually, you can use plug-and-play APIs to integrate the ERP software with the existing tools and other platforms you are already using. 
2. The initial upfront costs required to purchase the software license or implement the same will be quite low, hence suitable for projects when you have low and tighter budgets. 
3. Since off-the-shelf ERP systems are already tested thoroughly and have proven market usage, you can rely on their features and performance without any additional testing requirements. In other words, such systems are highly stable and worth of investments. 
4. Most vendors keep their ERP systems up and running with regular security updates, patches, bug fixes, and 24/7 support. Hence, you will be able to access improved and advanced features and won’t even have to worry about security performance. 
5. Usually, off-the-shelf ERP systems are integrated with standard features used across different industries to cater to the vast user base. Hence, these are useful for businesses where specialized workflows aren’t necessary to be implemented. 

Disadvantages 

1. Since off-the-shelf ERP systems lack customization options, they may not fully align with your business requirements and technical or functional specifications. Hence, you may have to look for other workarounds or deal with regular inefficiencies. 
2. Seamlessly integrating such ERP systems with all your existing tools and software platforms won’t be easy even though you will have several pre-built integration plugins. 
3. The ongoing maintenance fees, licensing costs, and other expenses will be quite high for the off-the-shelf ERP systems. 

Custom ERP development: Advantages and disadvantages

With custom ERP development services, you will have a software system tailored to meet your business specifications and cater to all your requirements with ease. Every functionality needs to be developed from scratch with detailed requirement planning, market analysis, and a custom feature list based on the workflows you want to manage with the ERP software. 

Advantages

1. Custom ERP software will be developed to be aligned perfectly with your business processes, technical requirements, hardware and software configurations, and other systems. It will help streamline your business operations and improve their efficiency by several notches.  
2. One of the major benefits of choosing custom ERP development services is the higher scalability that will allow you to integrate new functionalities or develop advanced features to cater to the growing business needs. In other words, you won’t have to take down the entire system and rebuild it from scratch to accommodate the changes. 
3. Custom ERP tools are designed to support complex integrations with all other tools and software systems you have already implemented beforehand. Hence, it will help streamline data flows and minimize friction or compatibility issues between the systems. 
4. Although the upfront costs might be high, a custom ERP solution will bring in more ROIs for your business in the long run, thanks to optimized operations and increased business efficiencies. 
5. You will be able to set your brand apart from your competitors with custom ERP software since it will be the key differentiator in terms of process management and event handling. 

Disadvantages 

1. The upfront costs involved in custom ERP development services will be quite high since you need to hire a professional company and invest too much in requirement planning, data analysis, and many more. 
2. Since the development will be done from scratch involving too much groundwork and requirement planning, the implementation time will be quite long. Hence, the time to market will also be higher, which may not align with your business plans. 
3. Ongoing maintenance of custom EPR software will be quite rigorous since you will be responsible for bug detection, security updates, data patches, and other necessary tasks. 
4. If the requirements aren’t defined clearly or if there are sudden delays in the development process, there will be huge risks to the system implementation. 

When off-the-shelf ERP solution will add value to your vision and goals?

An off-the-shelf ERP software will be best suited when:

1. You have a small-scale business with no specific technical and functional necessities. 
2. The initial budget is tight and you have no option for accommodating sudden spikes in the expenses. 
3. You prefer a stable system that has already undergone several rounds of testing from the vendor side. 
4. You are perfectly fine with a system that requires minimal setup even though it won’t offer customization options. 

When can you rely on custom ERP development services for your business?

If you choose custom ERP development services, ensure your business and plans meet the below criteria.

1. Your business has unique, complex technical and functional needs that can be catered to only through custom-developed ERP software. 
2. You do not have any concerns about the higher upfront costs and would like to invest in a long-term solution. 
3. The business is growing rapidly and you will need a scalable ERP to cater to the dynamically changing requirements and accommodate new features. 
4. You want to use the custom-designed ERP software to gain a competitive edge in the market. 

Conclusion 

With the dynamic market growth profile and the changing customer preferences, businesses often find it difficult to stay afloat with the competition using the old, conventional systems. So, you should carefully choose between the off-the-shelf ERP platforms from other vendors or hire reliable custom ERP development services to have a system tailored to your business needs and specifications.