Whenever we look for software solutions for companies, we will find that, in short, there are two types, with their particularities, but two:
Generic business software: It is capable of solving many needs. Although, it is usually used around 15% of its functionality, always depending on the type of company and its way of working, of course. Custom business software: It is designed or semi-designed by the client, that is, by the entrepreneur, by the design of the company or the members of staff who know how the business works or wants to work.
All functionality will be used very often, even on a daily basis, as it has been created specifically to address the needs of that company. Seen like this, it is clear that everyone will want custom business software for their business that works exactly as you need. However, depending on the time of the company, the capital to be invested, and some other aspects, it may be important to rethink this decision.
Later we will see a buyer try to clarify that a custom or generic business software is better.
We are not saying that generic software is better or much less, but we are clear in indicating that it can be more beneficial for a while, always following a strategy that ends up offering more benefits for the company, of course (not making a decision to the crazy).
Knowing this, it is worth delving into the matter.
Confused what an ERP software is? An Enterprise Resource Planning (ERP) software helps manage the core business operations. No matter what industry, ERP solutions are available for healthcare, retail, manufacturing, logistics, human resources, and many more. Well, the story does not end here. Given technological advancements, there are different kinds of ERP to choose among, such as:
Custom ERP Software
Custom ERP software is the one exclusively tailored to the needs and expectations of your business. These come with tools and automated processes that your business needs. The customization allows the integration of tools and technologies that you desire.
With the custom software development company at hand, you can list down what you need, and they will develop software that meets your goals and objectives.
Generic ERP Software
As the name suggests, generic ERP software offers basic functionalities that every other business requires. For instance, any retail business needs sales management, purchase management, inventory management, customer relations management, etc. While the workflow for all the trading companies might differ, their basic needs are similar.
If you only require general features without any customization, companies like SAP, Microsoft, etc. have a number of generic ERP software solutions to offer.
Comparing Custom ERP Software Development and Generic ERP Solution
When it comes to choosing the better option for your business, Custom ERP software development and Generic ERP solution often stand in the competition. Let’s look into what each of them has to offer:
Tools and Functionalities
Custom ERP software provides objective-oriented features and functionalities. With unique tools and processes, you can make your business a success. Generic ERP solutions, however, offer similar solutions to all the businesses, no matter what industry you belong to.
Cost of Development and Implementation
While most of the generic ERP solutions are readily available, the cost of development and implementation is lesser. On the other hand, custom software development takes time, more resources, and higher expertise, resulting in higher upfront costs.
Scalability and Flexibility
Custom ERP software is highly scalable and flexible. You can tailor them according to your needs, and they adapt according to changing business environment. However, generic software is rigid and limited. Even though they can be readily used, you cannot make any changes.
Domain and Knowledge
Another significant area to assess is domain and knowledge. Generic ERP software does not come with industry-related knowledge and so, do not have a fixed domain, whereas custom ERP solutions offer better business solutions as they are designed for a specific domain.
They provide the right tools and processes to analyze the needs of business and shape strategies accordingly.
Verdict – The Better Option?
In terms of quicker implementation, generic ERP software is better. They might also cost less, but custom ERP software puts more benefits to the table when it comes to long-term insight.
Tailored to your needs, scalable, efficient tools and specific functionalities, better security framework, and extensive testing, together, they help your business walking down the road of success!
Custom software development companies like FortySeven Software Professionals have great experience and expertise and deliver value.
How to Choose the Best Type of ERP for Your Business?
Choosing the most appropriate among the different types of ERP requires time and a prior study to choose the option that best fits your company.
The guidelines that you can follow are the following:
Analyze the Needs of Your Business
You will have to answer questions such as: what is the size of your company? Are you starting your business or not? What sector do you do? A company that has just started its journey is not the same as another that has been in the market for longer, and an ERP for restaurants is not the same as an ERP for construction companies.
Check the Budget You Have
The price of the type of ERP software you choose is important but should not be the only factor in choosing one or the other. Do not go for the cheapest and analyze several options before deciding.
Study the Workload of Your Organization
If your company has a lot of workloads, you can opt for a type of ERP with more functionalities and if the workload is not so high because you are starting out, you will have the option of a basic one that is scalable.
Analyze which Departments are Going to use the ERP
If there are several departments in your company that is going to use one of the different types of ERP systems, you should choose the one that best suits this situation.