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:
- Usually costs less than a full ERP system
- More opportunity for differentiation among competitors
- Strong, in-depth functionality within each module
- 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. Learn more about your ERP options by registering for our ERP Vendor Showdown.