There is a significant increase in demand for an ERP to improve business productivity and efficiency. If you have decided to implement an ERP to integrate your business activities, you are posed to the major challenge of “ERP selection”. Nevertheless, there is this question of whether implementing ERP will solve issues and help in the growth of the business? My reply to this would be “YES, definitely, BUT only if you are using the "Right ERP”. You will be in the crossroads pondering on whether to choose a Generic ERP or an Industry-specific ERP. Selecting the right solution is as important as the decision for considering an ERP. This article suggests why it is best to go for Industry-specific ERP.
Should meet your Business Model/Objective/Process
Organizations normally go for the BEST ERP in the market, rather than the one that aligns with their process. The selection between the “BEST” & the “RIGHT” makes a lot of difference on a business process and Return on Investment (ROI). Every organization is unique in executing their business; hence, it is mandatory to have a system that aligns to the business model/objective/process. Mostly, Generic ERP does not include those industry-specific functions; it might not suit that business.
Industry-specific ERP can understand your business requirement better with the domain knowledge that helps to cater to your needs aiming for a smooth ride.
Less Customization more Savings
Irrespective of industry-specific or generic ERPs, you need to customize the software to fit your business needs. The criticality lies in the amount of customizations required. At times, customizations might cost you up to the entire product cost by itself. Generic ERP requires lot of customization, expensive and consumes more resources and time. Industry-specific ERP requires less customization with specific features to meet your business need and process. It saves your money & resources, and reduces the implementation timeframe as well.
Mostly, lack of communication results in ERP failure; hence, it is very important that a vendor should understand the language of your industry. This turns out to be the greater advantage for the industry-specific ERP vendor, who speaks the same language as yours, use similar terminologies encouraging for a comfortable relationship. This helps the vendor to understand your need and challenges and provide a suitable solution.
Apart from all these, people associated with your company contribute to your business. They must feel convenient to use the system; else, the entire effort might be lost. The industry-specific ERP is only a replica of your process; hence, enables people to learn and adapt easily. Normally, people are resistant to change; hence, choosing a domain-specific is very critical to keep up their morale and productivity high. Industry-specific ERP seems to be familiar due to the similarity in the process and gives a good user experience.
The right business solution does not stop with implementation, it requires to be updated with the current changes in the industry to continuously help the business process. The industry-specific ERP is very flexible to accommodate these changes and update the new requirements compared to the generic ERP.
In addition, the industry-specific ERP gives myriad intangible benefits to both the users and the company as a whole.