If you could combine all of your favorite dog breeds into one loveable canine, you’d have a mutt. If you combined your favorite modules from various ERP vendors, you’d create a lovable ERP system – better known as a best-of-breed ERP system within the software industry. Small- to mid-sized businesses looking for lower-cost ERP solutions, often turn to niche ERP vendors who offer solutions for specific industries. While your organization may not want to implement a full ERP system, you should consider the long-term possibility of growth and the inevitable need for integration. Best-of-breed ERP systems encompass a variety of specialized functions from a variety of specialized vendors, all of which need to be integrated. Following are some advantages and disadvantages of best-of-breed ERP systems: Advantages:

  • Usually costs less than a full ERP system
  • More opportunity for differentiation among competitors
  • Strong, in-depth functionality within each module

Disadvantages:

  • Can result in inconsistent information across departments
  • Takes time to integrate
  • May have to implement a full ERP system down the road to accomodate corporate growth

Selecting best-of-breed software involves many choices. To expediate the process, your organization should begin by identifying its competitive advantage. For areas of competitive advantage, your organization should consider a variety of vendors in order to find the best module for each particular function. Your organization can house more basic functions, such as HR and accounting, in a single ERP system. Best-of-breed ERP software is not right for every organization. It’s important to consider your organization’s long-term goals. This is why a third-party partner can help your organization with finding the perfect fit. Download our white paper, Guide to Choosing an ERP Implementation Partner for some helpful tips.

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