ERP Software Development: Should it be Off-the-shelf or Customized?

You might face this question often – should I go for custom or off-the-shelf ERP? There are a lot of entrepreneurs who prefer customization over everything. As a business owner, your primary focus should be increasing profit.

However, many business owners think that off-the-shelf ERP is flexible, practical, and comparatively cost-efficient. There are many standpoints in this comparison. In this blog, we will analyze each of them and present them for you to choose from the two options.

There are scenarios when selecting a tailored ERP software is the best choice for your business. If the company has precise demands that must be met and no off-the-shelf solutions will fulfill these demands, custom software is the better choice.

On the other hand, Off-the-shelf software is developed and shaped for a wide-ranging audience of the user base. Off-the-shelf ERP software is quickly accessible, cost-effective, versatile, simple to use, has professional support, and possesses large-sized user base communities.

Why is Customized ERP Software Better in the Long Run?

Custom ERP software development is quite prevalent amongst enterprise companies. Custom ERP software has its design and development in a unique manner.

You can meet the organizational requirements in a better way. You can also set the needs for your preference and personalized boundaries with it.

The customized ERP is such that it comprehends all the organizational strategies and tactics. This scenario will help the organization in long-term growth and maturity. Additionally, it enables the enterprise to adopt mobility and help scale quickly.

How Off-the-shelf ERP System is Effective?

As opposed to customized ERP, off-the-shelf ERP has certain built-in features. Its design is such that it caters to all the modern-day needs for resource management. The design of off-the-shelf ERP enables it to give equal attention to all activities. It has pre-loaded features that designers have tested and verified before release.

Benefits and Demerits of Custom ERP Software vs. Off-the-Shelf ERP

Every coin has two sides. Thus understanding the benefits and demerits is very important. Here are some of them:

1) Scalability

When we compare both the software, we find that both are scalable. The growth of SaaS products is in such a way that they mature and expand as per industry benchmarks. However, the issue with off-the-shelf software is that its scalability is limited as you do not own the product. Apart from that, when you subscribe to the ready-to-use software, you get and pay for features you do not even need.

When it comes to custom ERP solutions, the design is in such a way that they are flexible as per your business needs. Even if the SaaS product is very versatile, it is tough to make them meet all the business requirements. This software is ideal if your organization has different software for diverse departments.

2) Deployment

There are many off-the-shelf ERP software development and ready ERP solutions available these days. They are easy to install and come with many support packages. They can very well solve the problems that your business faces.

When it comes to Custom ERP systems, the designers and developers build them from scratch. It would be best if you invest time for scope finalization before starting actual custom ERP software development.

However, if you want to deploy a solution in a matter of weeks, then it is better not to go for custom ERP development. You can even opt for prepackaged ERP software in such a scenario.

3) Cost Efficiency

If you are going for the custom ERP system, you might need significant investment. That is because of its built-from-scratch nature. But, it would help if you took note of the fact that custom solutions are going to be more efficient in the long run.

When it comes to off-the-shelf ERP systems, the upfront cost is relatively low. But that would not save you from the hidden costs. You have to spend a lot of money on integrations, maintenance, and sustenance. They also have a system of yearly subscription costs, which increases with additional features and time.

4) Exterior System Integrations

If you are going for custom ERP software, you must verify your existing integrations before designing and developing it. The beginning of the project includes the inclusion of an external system. Mostly integrations matter if your organization is already using some business management software or planning to leverage the new software as per advanced or futuristic trends.

In the case of Off-the-shelf ERP, third-party integration takes place. It may cost you a lot and has a lot of hassle regarding licensing and data management. But, these days, you get a lot of third-party plugins that make these solutions more advanced as per industry standards.

5) Architecture

The Custom ERP has an architecture that provides flexible solutions. It is very robust, and the system has excellent accuracy. It can be build as per the vision and business objectives of your organization.

Off-the-shelf ERP has a complex architecture. It tends to cause a problem during the implementation phase. This system is less suitable if you alter the operational workflow or the existing business pattern.

6) Flexibility

Custom ERP is a bit better when it comes to providing user experience. This is because they do the mapping of user requirements at the beginning itself. They offer a higher level of flexibility and can better meet the user’s expectations.

When it comes to Off-the-shelf ERP systems, they may or may not fit the precise needs of your organization. You do not get a lot of flexibility and hence cannot be a favorable choice in this aspect.

7) Business Processes

One significant advantage of Custom ERP software is that it comprehends your current and futuristic business objectives. You get well-built functions, correct business logic, and a good user experience.

When it comes to Off-the-shelf ERP, there are a lot of options that offer excellent solutions. They are quite swift to install and straightforward to use. The concern is that they may or may not meet all your business needs and current processes.

8) Execution Timelines

With Custom ERP software, you need some time to set up the project requirements. The time for development and execution is a bit higher in this case.

In the Off-the-shelf ERP, since the functions are in-built, it needs less time. Time consumption is an issue when there is a requirement for explicit or specialized training of your employees.

Key Takeaways

Whatever you decide for your organization with respect to an ERP software solution will have long-term consequences. It will also shape the tech and business strategy that you follow. You need to assess the challenges of each kind of ERP software before going for one.

To sum it up, go for a custom ERP solution if you cannot fulfill your needs with your existing software or a ready off-the-shelf ERP system.

One more aspect to take into account is your budget and futuristic business needs. After considering all factors, go for the ERP solution that suits your business and operations the best.

At IndiaNIC, we are a leading web, mobile app, and ERP Software development company in India & USA, offering IT technology services to startups and enterprises. Connect with us today itself for your custom ERP software development project requirements.

FAQs on Customized vs. Off the Shelf ERP System