Are you planning to purchase Enterprise Resource Planning software for your business? If your answer is affirmative, then you need to decide carefully whether to go for an off-the-shelf or custom one for your company. Of course, it is a tough choice as the customized one is scalable; therefore many SMEs demand customized ERP for running their manufacturing business smoothly. On the other hand, off-the-shelf is the one that falls in an affordable category. But do not forget the basic fact that several other factors are necessary to consider before purchasing the right ERP software for the company besides pricing.
What is Off-the-Shelf Software?
The off-the-shelf software programs are built-in in advance and are in a ready-to-use format. This kind of software is pre-loaded with several features. These software programs extensively verified as well as tested before releasing into the market for the public.
What is Customized Software?
This kind of software program designed for an organization to meet its specific requirements. As they are custom-made, therefore they are highly reliable and scalable. Manufacturing companies demand Customized ERP from reputed companies like Webcity Technologies LLP for meeting their organizational requirements.
Which Kind of Software to Choose?
Just like every side has two coins, the same is the case with off-the-shelf and customized ERP software. Let’s check out some of the factors prudent to weigh upon while deciding the right kind of software for your company:
- Budget: Surprisingly, in the long run, off-the-shelf software proves to be expensive. What happens, the readymade software programs have low upfront costs but due to ongoing maintenance, subscription fees and formal training required, they prove costly over time. On the other hand, custom software programs have an expensive upfront cost but it is custom- made as per organizational requirements, thus overhead expenses are low. Many medium to large-scale industries understand this basic fact therefore they prefer customized ERP.
- Architecture: The custom software programs built with greater accuracy and with a clear understanding of the company’s goals, thus they are highly robust and scalable. In other words, flexibility is the complimentary feature of the customized software. On the other hand, off-the-shelf ERP software has a complex architectural set up creating problems during the implementation phase. These software programs become unsuitable when there is any change in the business workflow or pattern. Due to this reason only, these software programs are less flexible as well.
- Execution Timelines: Since all features and functionalities are pre-defined in off-the-shelf software programs, they are quick and prompt. The only low side is employees require formal training to operate it successfully, which is a time-consuming task. On the other hand, customized ERP takes a considerable length of time for setting up but lesser time in training.
- Integration with External Systems: The requirements were analyzed, identified and verified prior to the development process for developing customized ERP for SME. Therefore, in such cases, integration with any other software or external systems poses no problem. In the case of off-the-shelf software, third-party integration proves to be an expensive proposition and companies need to resolve hordes of data management and licensing issues
which are both energy-draining and time-consuming. So, if you feel that you are confused about which software to buy, here is the summary for you: Go for Customized ERP Software for your Manufacturing or any other Company if:
- If you want to save cost in the long run.
- If you are looking for a flexible and mission-critical solution for meeting your business needs.
- If you want a high return on your business investment.
- If you are ready to bear the time lag required for development and implementation. Go for Off-the-Shelf ERP Software, When:
- You want affordable software with no extra cost regarding license, storage and other purchases
- If there is a standard business workflow methodology.
- If you are looking for easy to implement ERP system and with less flexibility.