Manufacturing Insights

An ERP blog from MAX

Top 5 Reasons Best of Breed ERP is Better for Your Business

Posted by MAX on Oct 1, 2013 10:30:00 AM

best-of-breedAs a small to midsize business (SMB) manufacturer, you need all the advantages you can muster to compete successfully with larger companies. The business software solution you choose can give you that competitive advantage. It can help you improve efficiency, reduce costs and improve customer satisfaction. But too often, small and midsized manufacturers settle for an integrated ERP system that doesn’t provide all the necessary functionality that is needed and has gaps in required areas. Which brings us to best of breed solutions, which level the playing field between SMB manufacturers and larger companies. Your business doesn't have different or lesser functional needs than larger companies; you require the same range of capabilities as larger companies, but capabilities designed to be cost-effective and efficient for smaller staffs with broader responsibilities. So why choose best of breed versus an integrated solution if you're a SMB manufacturer?

1. Minimizes software functionality gaps

Best of breed ERP software vendors are passionate about their area of expertise, and the companies hire individuals with deep subject matter expertise fueled by this inherent passion. The result is full-featured software that covers the full range of necessary capability in the chosen functional areas. The depth of functionality allows customers who choose best of breed software to use the enhanced capabilities to provide a competitive edge and to ensure maximum efficiency.

In contrast, when software companies spread their resources over the entire spectrum of business applications, including customer relationship management, human resources, financial applications, business analytics and manufacturing and supply chain planning, one or more areas of the application often receives less focus than the others due to lack of expertise, interest or strategic focus. This frequently results in significant gaps in the provided functionality.

2. Works with the high functioning software you already have on-site

Best of breed software developers know that you are not locked in to using whatever functionality they choose to provide. For this reason, they not only provide more and better functionality than integrated software vendors, but they also design the software in a way that makes it easy to integrate with other applications. This enables their customers to assemble a suite of applications that all work together and that provide the full spectrum of functionality and capabilities necessary to run a business, without settling for lesser solutions in some business areas.

Large enterprises may have the budget to upgrade or replace applications frequently whenever their requirements change, but business software represents a significant investment for SMBs. That’s why best of breed ERP software can be a better fit for small to midsize manufacturers, since it works with other business systems such as Dynamics GP, Intuit QuickBooks and Microsoft Office. With best of breed, your investment in exisiting applications is protected.

3. No need to put all your data into new software because you can keep your existing financial applications

Best of breed applications are designed for ease of integration and simply work better with other applications. Their designers know that customers will be using other applications to complement their functionality, so unlike integrated ERP vendors, they build in ETL tools, APIs and other methods of working with data from other systems. This vastly simplifies the implementation of best of breed ERP systems, because you don’t have to re-enter all your data or spend time rationalizing analysis codes so they work in both applications. Implementation processes with fully integrated solutions can be very costly and take up a lot of time and resources.

4. Costs less to get best of breed versus integrated

You make a substantial investment in your business systems, and you deserve to get the most from every dollar of your investment. Best of breed applications provide more of the necessary functionality for every dollar you invest. Because the best of breed vendor focuses on a single area of the business, it directs all of its resources to ensuring that the functionality is as deep, flexible and efficient as it can be. The staff’s expertise and experience in the target area, such as MAX’s focus on manufacturing, ensures that the application reflects best practices without compromise.

Unfortunately, with integrated ERP you run into the need to customize the software to compensate for functional gaps and ineffective workarounds that sap your productivity. Maintaining customizations can be expensive, cumbersome and time consuming, especially because they often impact many cross-functional areas within the application.

5. Updates are easier

Software updates include new techniques and best practices, process improvements and support for the most recent regulatory requirements, so it’s vital that your company stays up to date with the newest releases of your critical business solutions. Updating a best of breed application can be simpler than updating an integrated ERP system; the update only affects a single area of your business, minimizing risk and disruption.

In contrast, integrated ERP systems usually require you to update the full suite all at the same time, putting every business process at risk and requiring substantially more resources and planning.

 

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Topics: ERP, Best of Breed, SMBs

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