Manufacturing Insights

An ERP blog from MAX

ERP Deployment Strategies

Posted by MAX on Jan 31, 2014 10:30:00 AM

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ERP forms the backbone of most manufacturing companies’ IT solutions, but the standard ERP solution alone doesn't always cover all the bases. As your company grows, you may find yourself needing additional functionality such as quality management, service management or even a web portal for customers or suppliers. As these additional needs arise, your company faces decisions about how to cost-effectively and efficiently deploy these solutions. How do you ensure they function properly with the ERP system you already have in place (or are looking to put in place)?

Before jumping full speed ahead, it’s important to understand all the options. Today we’ll walk you through three possible deployment strategies and highlight some of the pros and cons of each.

Standalone Applications

With standalone applications, there is no automated integration, meaning you run your ERP system and any related solutions separate from one another. Running applications in standalone mode often requires users to manually enter the same data into multiple systems and/or use spreadsheets or paper lists to maintain that data.

Pros

  • No need for your IT team to maintain integration programs or worry about support issues
  • Upgrades for each individual system can be relatively uncomplicated without the need to maintain integration points

Cons

  • Time-consuming to enter and maintain duplicate data
  • Difficult to see the entire picture since data is often housed in separate databases or spreadsheets/paper lists
  • Takes longer to make fact-based decisions; people often guess or use ineffective rules of thumb
  • Can become cost prohibitive due to data errors and discrepancies over time

Best-of-Breed Solutions

Best-of-Breed solutions use integration tool programs to move data from one system to the other. Some ERP vendors that offer best-of-breed options will deliver an integration manager program out of the box, treating the implementation and the full offering as a single solution. Other vendors provide access to the API (Application Program Interfaces) that will allow companies to develop custom integrations to exact specifications.

Pros

  • No need for users to post transactions and maintain data in multiple systems
  • Often costs less than fully integrated solutions
  • Keep existing applications that already work for your business and integrate them with your ERP system
  • Minimizes software functionality gaps since you can use best-of-breed applications alongside your ERP system

Cons

  • Upgrades can get complicated if testing must be done to ensure new releases don’t affect other systems; you might find yourself staying on an older release longer than you should
  • If not provided by your ERP provider, additional costs will likely be associated with the integration programs, whether you pay a third party for support or rely on your own IT team to maintain them

All-in-One Solutions

With an all-in-one solution, your ERP system and all supporting applications are provided by the same vendor. There are predefined, supported integration points and a single point of data entry and transaction processing.

Pros

  • Consistent and familiar user interface, regardless of the application area
  • Simplified support and maintenance since there is only a single vendor involved
  • Upgrades tend to be easier, since all integration points are tested by the vendor before release

Cons

  • Using solutions all from the same vendor may mean you are locked into using certain functionality that would otherwise not be the best fit for your business (or lacks features you need)
  • Updates can prove difficult if several custom solutions are required to close functionality gaps
  • Can be cost-prohibitive for many businesses

Topics: ERP, Best of Breed

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Insights, opinions and news relating to the world of manufacturing and ERP software. Read the full introduction here.

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