Scale vs. Specificity—No Trade-offs Required

As we continue to experience
significant global shifts in demand six months after initial responses to COVID-19,
it’s become clear that these unpredictable patterns will not stop or slow any
time soon. Companies needing to invest in enterprise technology upgrades now
face the tough reality that they will need to make those investments despite a
global economy that remains uncertain at best.

Choosing an ERP system doesn’t come with the luxury of trial and error, and given the significant costs and operational pivots during a go-live process, it’s critical to get it right the first time. That pressure can sometimes lead selection committees to take what they perceive as the lower-risk path of choosing a generic ERP solution from a well-known global player, rather than an industry-specific ERP provider that may actually offer a more proven, robust solution for the company.

ERP

Large, global providers tend to be first-to-market with new
technologies, but those advances are not typically designed to speak to the
needs of a specific industry. That lack of focus can create the need for
significant levels of customization for companies in specialized sectors like food
production, where there is a need to track products by batch and lot for
recalls; or like chemical manufacturing, where regulations demand enhanced reporting and audit management
processes.

Every industry has
operational requirements that must be managed systemically. So if the business
need should drive the software choice and not the other way around, why would
specialized manufacturers even consider a solution that is not built to serve
their industry?

It comes down to a
concern over the scale. Some industry-specific solutions were developed by
former executives in said industry, so the functionality seems spot-on. But
such companies may not have the capital to invest in ongoing innovation. In
addition, they may not have the resources to adapt and grow with your business
as it expands, as new products are added, or as new regulations are introduced.
The average lifecycle of an ERP is almost 10 years, so it is vital to have a partner
that can scale.

Perhaps, as a result, we see some selection committees favor scale over-specialization, but that, in turn, may force the company to invest in significant customizations that can come with unforeseen costs:

  • Time and price increases linked to customization. Generic ERPs can work well for very large companies with
    deep pockets to fund ongoing customization. However, adapting code to support specific
    industry functionality will likely hike costs significantly and could push your
    “go-live” date out by months. Most mid-market manufacturers see better value in
    software whose base functionality is designed specifically for their industry,
    such as recipe formula management for process industries.
  • Tricky integration of bolt-ons or ancillary functionality. System modifications not only cost more, but they also add
    complexity and can be hard to “bring along for the ride” when you upgrade the
    system down the road. Essentially, you’re programming the system to do things
    it wasn’t originally meant to do, requiring an ongoing investment budget to
    keep the system current.
  • Poor knowledge of your
    industry.
    You’ll invest lots of your valuable time teaching
    developers your business. With an industry-specific ERP solution, you’ll skip
    that step and become part of a peer group with similar challenges, where
    enhancements added for one member of the group become part of the software’s
    feature set, available to all.

Specialization that can Scale—the Best of Both Worlds

Luckily, it’s not necessary to choose between global scale and industry focus when selecting an ERP system. Today, the most robust industry-specific solutions come from well-capitalized companies like Aptean that combine the precise features you need with the resources to continually enhance those features. Aptean offers a family of industry-specific ERP solutions for the mid-market that gives manufacturers and distributors a balanced combination of vertical focus and the muscle to invest in ongoing innovation—specialized solutions that can scale.

If you’re choosing a new
ERP solution, start with an uncompromising approach. Work with each of your
business’s functional teams to define how the perfect system would support
existing processes, then identify industry-specific ERP solutions that deliver
most or all of these requirements out-of-the-box. After that, ask yourself
these questions to vet the remaining providers carefully, making sure your
solution is future-proof:

  • Do they have the resources to continually invest in innovation? 
  • Do they have a clear roadmap for the software and future versions? 
  • Do they have the staying power to support your needs well into the future?
  • Do they offer all the advantages of a cloud-based system or a clear path to get there?

You can have the best of
both worlds—an ERP that is purpose-built with specificity for your industry,
developed and backed by a company with the resources to help
you navigate and scale the challenges of today and tomorrow. 

Your company is not generic. Your ERP system shouldn’t be,
either.

The post Scale vs. Specificity—No Trade-offs Required appeared first on ERP News.

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