Today, organizations are looking at ERP not just as a tool to automate processes but to be a means of becoming agile and adaptable to the evolving market requirements. ERP software is fast turning into an intelligent core capability that can easily adopt other technologies, harmonize processes, and provide enough control and authority to the user to drive productivity while maintaining security.
Regardless of the industry – manufacturing, distribution, retail, or any other sector, ERP is the backbone of an enterprise. With its vast features, modules, and benefits, companies can quickly achieve higher ROI on their ERP investments. Though the importance of ERP is recognized, the big question is whether to build an In-house ERP or buy Branded software?
Let’s explore the pros and cons of both the versions and find out why investing in a branded solution makes a smarter business decision.
Branded Vs In-house ERP – A Quick Match
Branded ERP software is developed, implemented, and maintained by third-party vendors such as NetSuite, Oracle, SAP, etc. With a branded solution, companies are sure of getting a proven and established solution customized per business and industry needs. As the solution is implemented by a third party, an enterprise may have less control over the software. In-house ERP software is developed, implemented, and maintained by the internal teams of an enterprise. Though the company has complete control over the software, its features, functionalities, and customizations, the software may require more than a few trials and tests and have its own challenges. Further, developing an in-house solution requires a significant investment of time, money, and resources, which can be immensely demanding.
Here is a table that lists the key differences between in-house and branded ERP:
| Feature | Branded ERP | In-House ERP |
| Scalability | Easy | Difficult |
| Upgrades | Automatic | Manual |
| Cost | Less Expensive | More Expensive |
| Time to Implement | Shorter | Longer |
| Control | Less Control | Full Control |
| Customization | More Customizable | Less Customizable |
| Support | More Support | Less Support |
| Managed Services | Third-party | Internal Team |
Let’s elaborate more on these differences.
- Cost Effectiveness: Branded ERPs are comparatively affordable than In-house solutions. The domestic ERP is pricey due to the high upfront costs, investments in new hardware devices, software applications, recruiting/ retaining right resources, and more. Companies looking for a budget solution can consider a branded solution over building one.
- Timeline Matters: Implementing a vendor solution takes less time than it takes for a domestic solution. The longer timeline is due to the development and customization of the solution specific to the business needs. In the case of a tighter timeline, it is best to choose a branded ERP.
- Authority to Control – Branded ERPs provide little authority and control over the software. In contrast, a company will have complete authority and control over its In-house solution. As an organization, if you hesitate giving access to your internal systems, it is best to build a solution internally.
- Customization Possibilities – Both in-house and branded ERPs can be customized with different features and modules. However, it is easier to customize a Branded solution than to add/ build newer features to a domestic ERP. Customizing core ERP with additional modules incurs additional costs. So, depending on the budget and specific needs, you can choose the right features. To pick the best solution for your business, it is advisable to consult a seasoned implementation partner like Forsys that offers a complete set of services.
- Support Availability – Post implementation, branded ERPs are always on their toes to support, prevent, and resolve any issue. Whereas organizations with an in-house system have the onus of maintaining and addressing any issue.
Developing, implementing, and maintaining in-house solutions greatly depends on the expertise of your IT team’s expertise. If the internal team is adept at seamlessly delivering a scalable ERP, then you can consider an in-house solution. However, if the IT team is not sufficiently experienced or the processes are intricate and complex, it is better to choose a branded ERP solution.
Regardless of the type of ERP you choose, it is important to do thorough research and select the right solution for your business; this will improve efficiency, boost productivity, and enhance the effectiveness of decisions.
Why Pick a Branded ERP over In-house?
Some of the clear advantages on buying a branded ERP are:- On-cloud – The biggest advantage of a branded ERP is that the software is available on cloud whereas, an in-house software is restricted the for internal use on-premises. Access the software anywhere and get the data with just a few clicks.
- Leading Practices – Branded ERPs follow a set of guidelines that are accepted across industries and are believed to produce optimal results.
- Scalability – Branded ERP solutions are typically more scalable than in-house ERP solutions, making it easier to add or remove modules and functionalities as the business grows.
- Security – Branded ERP solutions are typically developed and maintained by a team of experienced developers and security experts; this ensures high levels of security.
- Reliability. Branded ERP solutions are tested and refined over time and are turned into mature and stable software trusted by many businesses. The performance of a branded ERP solution is more reliable than in-house ERP solutions, which may not be as extensively tested.
- Smooth Implementation: Branded ERP solutions are typically easier to implement; and implementation partners ensure the project is completed on time without any risk of delays or errors.
- Easy Upgrades & Maintenance – Vendor ERP software is regularly updated with the latest releases ensuring enhanced user experience, improved software performance, and more.
So, Which Type of ERP Is Right for Your Business?
The answer depends on several factors, including a company’s size, complexity, budget, timeline, and the ability of IT resources.
If you have a small business with simple needs, an in-house ERP solution may be a good option. However, if you have a large or complex business, or if you need a high degree of customization, a branded ERP solution may be a better choice.
Ultimately, the best way to decide which type of ERP is right for you is to talk to a qualified ERP consultant like Forsys. They can help you to assess your needs and recommend the best solution for your business.
Forsys for ERP Services
Forsys has a wide range of service offerings, including managed services that continue to prove transformative for customers in the manufacturing, retail, healthcare, Hi-tech, and other sectors.
As a leading NetSuite implementation partner, our team of experts is recognized for doing a thorough assessment of the existing processes, advising the best course of action, and recommending the right-sized ERP solution per business goals. We seamlessly execute integrations using our bolt-on solutions, implement projects, and provide post-live support to ensure higher customer satisfaction.
Be a part of the growing ERP market and be quick in adopting digital platforms, technological advancements, and other factors to automate processes, streamline workflows, and improve productivity. Read our success stories and to discuss more, talk to us.