Why Choose SAP® Business One Over Local or Custom ERP

May 1, 2018

 

 

While selecting ERP for the company, customers always evaluate ERP solutions  which include fitment of processes, scalability of solution, ease of use, cost etc.

 

During this evaluation, they are likely to come across custom developed or locally developed ERP applications available in the market. In fact, they may get attracted to them given that they cost very less upfront. On the other hand, they would evaluate a world class ERP application like SAP Business One. The initial investment may appear to be high (which in reality is not true ) in comparison to the local ERP.

 

Customers need to note that investment in an ERP is for mid to long term and that they need to keep long term vision in mind and conduct the due diligence of the options accordingly.

 

Here are eight key points of comparison, which could help customers in their evaluation process and make an informed decision.

 

 

 

 

1. Product Related Risk:

 

SAP Business One:

SAP is world’s leader in ERP and technology solutions. In particular, SAP Business One is being used by more than 50,000 customers globally. This fact practically eliminates any product related risks.

 

Custom Developed ERP:

Much smaller customer install base if any (for local ERP products). Typically keep undergoing corrections on basic processes, bug fixing and so on. If the solution is being developed for the first time then the development time can run into year(s) and functionalities get released in a piece meal.

Not only does the customer not get to use the complete solution quickly, they also lose time and with it, they incur a cost of missed opportunities.

 

2. Product Support:

 

SAP Business One:

SAP has a large partner base and customers have a choice to move from one to another if they are not satisfied by the quality of service.

Plus, SAP itself provides help desk support if the issue is escalated to them by partner(s).

 

Custom Developed ERP:

Customers have to depend only on one single company that has developed the solution. Being a small entity it can face business challenges like lack of resources, financial instability etc. which can have an adverse impact on the service quality.

 

3. Business functionalities:

 

SAP Business One:

Product is developed keeping the global market in mind. It incorporates best practices from across the world. However, it is possible that some small functionality (very peculiar to any industry vertical) may have to be customized during the project implementation.

Alternatively, customers also have an option to buy add-on solutions developed by some other partner to reduce the deployment time.

 

Custom Developed ERP:

If the product is developed afresh for a customer, then it is likely to address almost every process that the customer wants (which may or may not be the best practice).

However, such applications may not stand the test of time.

 

4. Customization with changing needs:

 

SAP Business One:

Customization is quite easy in SAP Business One. User can add new fields and tables on the fly using the front end of the application. For a complex development, SAP’s software development kit can be used by the partner to deliver seamless solution.

 

Custom Developed ERP:

When changes are required to the solution customer is likely to face challenges on account of either lack of flexibility in the product, unwillingness of developer to make changes, non-availability of resources at product developers end etc.

 

 

5. Flexibility:

 

SAP Business One:

Easy and quick customization capability makes the application quite flexible.

 

Custom Developed ERP:

Making changes to any functionality becomes difficult. Even for adding new fields customer has to depend on the product vendor, who may or may not be able to appreciate the business urgency.

 

 

6. Help documentation:

 

SAP Business One:

Available publically on SAP’s help website. It is kept updated in line with new functionalities added to the product.

 

Custom Developed ERP:

Chances of getting documentation are very limited.

 

 

 

7. Updating the new technologies:

 

SAP Business One:

SAP is a world leader in ERP products and invests significant resources in updating the computing technologies in their products. This benefits not just new but existing customers as well.

 

Custom Developed ERP:

Very unlikely that a small company would be able to do this. Hence customers get stuck with a technology that may have become obsolete.

 

 

8. Scalability:

 

SAP Business One:

SAP Business One is designed and developed in a manner that protects customers’ investment over a long period of time. It has the capability to keep scaling up to match customers’ business growth.

Support multi-location, multi user with ease. Customer can keep adding more users, more locations, as required.

 

Custom Developed ERP:

Scalability is a question mark & hence a risk for the customer, who may have to shelve the ERP and go for new one that would support the increased business. We have encountered several such cases.

 

 

 

 

Any enterprise considering a long term investment in an ERP solution will need one that is flexible enough to adapt and scale with the needs of enterprise. This is not a single or final implementation, but rather the foundations of a solution that will scale and grow with the enterprise. There are no barriers to entry into a product such as SAP Business One, due to the affordability of the solution and the ability to scale it from your turnover to one hundred, two hundred or five hundred million.

 

Customers need to think strategically and not get distracted by the appeal of “low cost” of custom or locally developed ERP solutions. They must realize that the low cost ERP is very likely to pave a road full of pot holes for the company’s journey in the future. They should in fact lay the IT foundation in the form of SAP Business One, which not only helps them become more transparent and efficient in operations but can also serve as source of valuable data for performing analysis of company’s performance across various dimensions.

 

If you are assessing the various options for your enterprise, our experienced SAP Solutions team are available to assess the needs of your business and identify the best solution. Click here to get in touch.

 

 

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