Regardless of the size, geographical location, and type of business. Almost all Businesses face this issue. Customized ERP or packaged ERP system.
As a business owner, the main priority is to be as efficient as possible for their business growth, profitability and also an Return of Investment increment. There’s a balance market of business owner who prefer customization and Off the shelf ERP system.
Well, to start off. Customized ERP and Off the shelf ERP both has their own standpoints, considering into factor that there’s many different scenarios. And making this decision based on all these parameters is simply near to impossible. There are numerous organization opting for off the shelve ERPs for their business as it seems like there’s a vendor who can provide a “one shop fit all” software for all companies.
On the contrary, there are alot of organizations who also want their own solution to be developed as per their own business flow and have IT Vendors design and deliver a ERP software solutions par excellence.
The decision is subjective and that’s why for companies, it’s always important to make this confusing choices early in the beginning of the company growth stage.
let’s take a look at the bugeting factors today, to consider between Customized or Off the shelf ERP.
Customized ERP systems are developed based on specific customer request. More precisely, it’s designed specifically in accordance with your organization needs, therefore providing an accurate and effective solution to the company problems. Morever, it’s propitiatory to the company and also flexible to change, modify or add on functionality. Customized ERP strong point is that it’s uniquely built for the organization and thus there’s no other organization that can have the exact same software as you.
With that, the cost factor when considering to opt for customized ERP will definitely cost more than Off the shelf in terms of Man hours and duration, However it’ll cost less as there’re pre-defined modules which will not incur cost from unnecessary modules and functions.
Off the Shelf ERP:
Off the Shelf ERP often comes with their own set of costing e.g Modules, Licensing Fees, customization charges and implementation cost. It’ll be much more cost effective as it eliminates the analysis and identifying part that Customized ERP has but incur more costing on the modules and customization part.