When it comes to choosing a business solution there are two approaches: the ERP and the "Best-of-Breed". The purpose of this article is to help you make the best decision for your business which is why we have provided you with the advantages and disadvantages of each.
For example, In 2000, Zetes an international group specialised in identification and mobility invested in a "traditional" ERP. However, due to insufficient business coverage, a lengthy deployment and increasingly expensive maintenance costs, Zetes decided in 2004 to equip it's head office in Brussels with a "best-of-breed" solution. This allows the company to gain operational efficiency, flexibility and autonomy.
The company went on to implement the solution in most of its branches. Today, more than 300 employees are using the new solution.
Now that you've learned about the advantages and disadvantages of an ERP, we are going to focus on best-of-breed solutions, and what they bring to the table.
Main features of a Best-of-Breed solution
A best-of-breed solution focuses on providing the best product of its category. A company would purchase software from separate providers in order to obtain the "best-of-breed" for each application area; for example, an accounting package from one provider and a human resources package from another provider.
A best-of-breed solution has three main characteristics:
Why you should implement a BOB solution
The first and most obvious advantage is having the best solution for each of your targeted areas.
This type of solution allows you to become more agile in the way you work. This is because best-of-breed solutions allow you to build and create the perfect environment for you to operate in. By doing so, you'll be able to easily identify problems and come up with solutions that really correspond to your needs and optimise your activities.
Essentially, by implementing a best-of-breed solution you're gaining in efficiency and flexibility, which is not really the case with ERP's. Because they are designed to address broad issues, they don't have the ability to meet very specific requirements on specific issues.
What you should think about before implementing a BOB solution
A company implementing best-of-breed solutions will most probably have a different software for each of their target functions.
You will have to deal with numerous providers and numerous databases. This will result in inconsistent information across departments since the data is not centralised and you will end up with data redundancy and information that is scattered.
Sharing data across teams and departments will be difficult when everyone is using a different type of system. Your employees will have to spend more time trying to extract the right kind of information rather then spending time on revenue generating activities.
Moreover, integrating with other systems is complicated process.
These issues will have a big toll on your employees performance and productivity which can will hinder the company as a whole.
How to choose the perfect solution for your organisation
Choosing the right system for your company is not easy. Between best-of-breed solutions, a global ERP system or even a hybrid you'll definitely have to weigh the pro's & con's.
But not to worry, you won't have to do this alone. To help you out, we have outlined the three most important questions you should be asking yourself when searching for new tools to implement:
- Which processes and activities are you looking to improve? Once identified, you'll have a better idea of the type of tool you should implement.
- How important is flexibility and scalability? This is a crucial step in your decision making process. You must find a solution that will meet your needs today and tomorrow.
- How is my company structured? is it based on a functional, matrix or project structure? Business structures are essential variables to take into account, regardless of the sector of activity that we are looking at. Choosing an ERP or a best-of- breed will depend on your organisation's structure.
Do you want to know figure out whether a BOB is the right way to go? Or do you think an ERP is better suited for your needs?
Here's a short quiz that will give you a better idea on the type of tool you should invest in!
Are you more ERP or Best-of-breed?
|The issues I am trying to solve involves all the activities within the company|
|I have 6 months (or more) to address this issue|
|I have internal resources to support the implementation of a new tool|
|The company has the necessary means to invest in a new tool|
|Having a centralised tool is a priority|
|Flexibility is a priority|
A majority of "YES"? Then you should invest in an ERP. This Capterra ranking will help you find the best ERP solution for your organisation.
A majority of "NO"? Then you should invest in a Best-of-breed solution. If you want to improve areas such as project planning, time management, resource planning and increase your visibility, ask for a free consultation with one of our advisors.