Interacting with executives from different markets will have you learn that they hardly find a significant difference between the various concepts in enterprise resource planning solutions today. Probably, that is because these products share common features such as scalability, where all involved parties can collaborate on the same project.
What these executives do not see is how industry-focused these enterprise resource planning applications have been getting with time. And while there could be a thin line between best-in-class and best of breed ERPs, mastering the difference will help you find a product that will meet your business needs for the right corporate financial management systems.
Best of Breed
These are stand-alone applications that vendors develop for particular problems. The benefits of using this concept in ERPs include flexibility in managing future upgrades, a high number of specialised vendors, easy modular integration and lower application maintenance costs. Also, since all the features handle a single functionality, IT strategy is independent of the upgrade and maintenance schedules.
The main disadvantage, however, is that vendors of best of breed ERPs do associate with multiple databases, which lacks the edge of specialisation.
Best in Class
These are ERP applications with speciality tools for solving various problems that service organisations face. Typically, they are enterprise-wide with all core function integrated into the suite. The advantages of this concept lie in how tight the integrations are in manufacturing, supply chain, quality, finance and inventory functions. Vendors also tailor these applications to be industry-based.
Service organisations understand how complicated selecting an efficient enterprise resource planning project can get. Include long-term efforts of strategising for these projects, and you will know the high risk and number of resources to which you will be exposing your business. However, with the right choice of ERP applications, you can focus your financial management systems to yielding a high return on investment.