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iStock_000022544544_Medium (2)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.

Download our white paper, Guide to Choosing an ERP Implementation Partner for some helpful tips.

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.

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