Personalized or non-personalized? This is the dilemma that worries managers, consultants and entrepreneurs when it comes to choosing an ERP system. Since the Cloud and SAAs (Software as a Service) models have spread, the debate has become even more polarized: on the one hand there are supporters of standard solutions, today highly parameterizable, on the other the proponents of customized ERP software. Reading the articles on the topic published on the sector blogs, it is clear that the former focus entirely on speed, simplicity and economy, while the others highlight the advantages in terms of efficiency and effectiveness. We are of the opinion that simplifications should be put aside and customer needs put at the center,
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Pros and cons of standardized software
In jargon we talk about OOTB (Out of The Box) solutions, which in UAE we could translate with "ready-to-use solutions", a definition that puts the concepts of speed and simplicity of implementation in the foreground.
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As regards the economic aspect , however, it must be considered that the goal of the OOTB management vendor is to reduce (to almost eliminate) the customizations in order to minimize the costs for maintenance, assistance and updates by reducing thus the total cost of software ( TCO ).
The other advantage highlighted by the vendors of standardized software solutions is technical independence : using an OOTB software , in fact, the role of the IT department becomes more marginal, the know-how related to the management is distributed more evenly among all its users and the learning phase is much faster.
In addition, these software include numerous best practices designed specifically to guide users and help them optimize their work.
Although the investment (economic and non-economic) for the implementation of an OOTB software is actually much lower than that of a customized ERP system, it is logical that this solution cannot be optimal for all companies, especially in the manufacturing sector. Whose business processes are complex and articulated?
For this reason, the most advanced OTB software provides a wide range of configuration parameters of the individual modules that compose them in order to better adapt to the needs of the company.
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In short, customizations seem to be necessary anyway and, in the opinion of internationally renowned software house managers such as Microsoft and Oracle, they are still able to offer an effective response only to 70 - 80% of business processes. The fundamental aspect of the question is not so much that 20 - 30% of functions that risk not being satisfied by the standard packages: this software, in fact, can be integrated with other management solutions without too much difficulty. In our opinion, the most important aspect of the customization debate is another and is often underestimated, but we will talk about it later.
Pros and cons of customized software
Opting for a Customized ERP Software's in Dubai like having a tailor made a tailor- made suit: if you take the right measurements and choose the right fabrics, it will adapt perfectly to your needs.
In the same way, to design a customized ERP we start from the analysis of your organizational and production structure and possible future evolutions and then develop the software functions with the aim of making your business processes perform better without distorting them.
For this reason, the main advantage of customized ERP software is its efficiency.
In fact, by correctly mapping the value and striving to identify the wastes that reduce company productivity, you will be able to obtain an ERP that is truly capable of optimizing all your work processes: from production to accounting , from logistics to marketing , from the sales network to customer relations .
The other positive side is that, if part of your systems and working methods are already performing, you can integrate them with the new ERP without upsetting your team's operating methods too much.
In addition, you do not have to implement everything immediately, but you can opt for a gradual transition starting from the core of the software and then adding new features. Obviously this expansion is feasible on condition that, in the preliminary phase, a complete and correct analysis of your needs has been made.
In fact, although the implementation of Customized ERP Software's in UAE a company that frightens most companies, in practice it also ends relatively quickly, provided that we proceed in the right way. But of this, we have already spoken in a dedicated article.
Finally, by using customized ERP software, you will not simply be one of the many customers of the software house from which you purchased the program, but you will establish a real technological partnership with your supplier. For this reason it is essential to rely on suppliers:
- experts in their own business sector : for example, we have a high specialization in the sector of footwear, clothing and accessories companies;
- available to listen and analyze your needs not only in the initial phase : in fact, the software must be able to grow together with you;
- Capable of putting their technological and methodological know-how at the service of your company structure.
The fundamental difference between a customized ERP and a standard solution, however, lies in a factor which, as we said before, there is still too little talk. What is it about?