In a recent blog post, we discussed major ERP disasters that caused businesses major loss of revenue in the market. In a previous post, we talked about some business cases of companies that made the wrong ERP implementation and faced huge repercussions. In continuation of the same topic, we further our discussion that incorporating the right Custom Enterprise Solution can aid your existing operations and uplift your business significantly.
ERP Setbacks that signal Custom Enterprise Solutions a Viable thing
Here are some examples of the gigantic ERP fails.
- Target Canada
Let’s go through these ERP mishaps briefly.
Taking the example of Vodafone that went through the hassle of migrating customer accounts through Siebel CRM and later got complaints that not all accounts got migrated properly. Hence, certain customers weren’t properly credited for their made payments. Eventually, Vodafone had to pay a 4.6 million Pounds fine.
One of Australia’s biggest chains of stores, Woolworth faced a severe issue in data-related problems thanks to implemented SAP solutions. Managers could not gain visibility of the profit and loss as reports could not be generated for almost 18 months. Lack of documentation of business processes in between the transition from a legacy system to an inhouse system caused major issues.
In another example of proprietary Enterprise Software Development gone wrong, Target Canada had a flawed assumption about data in the ERP system. They assumed that there would be no data migration, just new information to input in their SAP system. Moreover, the new system was incorporated without any proper training given to the operating users. Lack of expertise in operating the system was the biggest issue resulting in only 30% of correct data entered in the system.
Reasons behind the Failure of Proprietary ERP
Considering the examples, it is important to choose an ERP solution that best fits your business needs. However, it is also important to evaluate your business and assess what is really needed. At times, even the best-fit solutions are a miss because you are unable to figure out what you require from the system to actually do for your business.
This is where the argument between ERP vs Custom Enterprise Solution comes into the spotlight. It is important to understand the reasons why ERP systems fail for companies.
ERP Solutions require Cost and Time
A lot of businesses have unrealistic expectations when it comes to ERP implementation. They want low cost in terms of implementing the solution which means butting back on various logistics, staff and other aspects of the solution. The majority of failed ERP implemented solutions start off with poor planning of the overall project. The expectations are sore high but no one ever understands the delivery of a resilient and flawless solution requires time, proper scoping with capable resources.
ERP Customization a Tough Ask
Going for already built Enterprise Technology Solutions available in the market is a wise step. This is especially reasonable if you have less time in your hands. However, it is not possible to customize an available solution because it may not serve the business need as per your requirement.
By adding forced customization, you might be affecting the program’s efficiency, causing a ripple effect on other functionalities or even causing a glitch that may afterward cause harm in the way the product works. In such situations, it is best to opt for a custom Enterprise Software project that can deliver you a better business solution.
Business Process Management becomes Difficult with ERP Systems
In today’s competitive world, companies expect a very particular sort of ERP solutions. However, the majority of the already available ERP systems are broad with insufficient capacity for business process reengineering. At times, companies rely so much on the existing available solution that they fall in the trap of automating processes instead of focusing on what actually works for their business. Manual intervention is not always bad, especially when you need special care and focus on your customer data and ways for better manageability of it.
Businesses also get carried away in making drastic changes in the existing set of processes without proper change management incorporated in the system. There is no way to measure what the product was to what it becomes, how to measure the change, its overall impact, and repercussions.
Custom Enterprise Software Development: The Future for ERP Solutions
The future of the ERP solutions lies in the Custom Enterprise Software Development in the digital era.
To further our argument, we now provide you with some of the benefits that a custom Enterprise Software Solution can offer for your project.
One of the biggest advantages of having a customized ERP system built for your business is that it helps you get an extensive feature-set that accommodates all your business problems. If you hire a third-party company for developing a customized ERP solution, that firm will, first of all, understand what is your requirement, conduct an in-depth analysis of the market and present you with a solution that tailors your business needs.
You don’t have to worry about getting a solution that does not comply with your business from the word go. Your business will scale through specialized enterprise solutions, instead of being another ERP failure story.
Good custom-made ERP software is flexible because it allows you to perform functions as per your requirements. For example, you want to add a large volume of consumer data that may be customers or potential users. The differentiation between these users is an important aspect as it helps you in the conversion of users to consumers. This may not be a fixed feature in the commercial off-the-shelf (COTS) ERP system, however, if you get custom Enterprise Technology Solution for your business; such features are then developed to accommodate your business needs.
Contrary to popular belief, custom Enterprise Software Development may not cost as much as you think it does. In fact, there are a lot of third-party companies providing economical solutions at very affordable rates. By outsourcing your project needs, you are shifting the entire project development risk to another company while you are in the driver’s seat as you closely monitor the developed product through various milestones and stages throughout the project lifecycle.
Higher Support and Upgrade Possibility
When it comes to custom Enterprise Technology Solutions, you can decide on the kind of support you require once the solution is developed. A lot of companies even offer post-deployment support and upgrade options. Such types of operations and logistics help out in extending further stance for a higher output of the product.
From Transition to Normalization
When you opt for already existing ERP software, you don’t get a stability period warranty. The product is deployed, data is migrated and you are given the keys to a new house to manage on your own. However, with the custom Enterprise Software Development solution, you are given assurance of being guided from the transition period of the software until your actual business is normalized. Usually, such time duration is of 2-4 months, where it is likely that the built product will also adapt to the existing system.
When it comes to ERP solutions, it is obvious that such type of systems doesn’t get deployed every day in the business. ERP system is like the backbone for your business which allows you greater facility in managing customer data. Hence, the crucial decision of whether to opt for an already available ERP system or custom Enterprise Solution, the answer lies in choosing the latter.
If you are looking for a Custom ERP Development, then look no further than Techliance – a renowned name for developing highly customized ERP solutions for various companies across the globe. Talk to us for a free detailed discussion today.