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Advantages And Cons Of New Systems

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In recent years there has been a growth in the number of stand-alone, so-called “best-of-breed” applications, that only deal with one aspect of the company’s activities, as opposed to traditional comprehensive ERP solutions. A best-of-breed approach to enterprise IT needs would be to purchase a combination of solutions from different vendors. A comprehensive unified ERP solution, such as Xledger, is system that covers a wide range of functionality. However, even unified solution usually has a particular strong value proposition in one area, while it provides “good enough” functionality in other areas. Some ERP systems (e.g. Netsuite) are marketed as “integrated” or “suite” which usually means that a company has acquires various vendors,…show more content…
Even if two applications can be made to transfer data reliably 100% of the time, problems arise if one of the applications is modified or upgraded. One study found that over a three year period, the total TCO of an integration application was more than 8 times the initial software license cost. Having a unified solution will be an advantage with regard to training, integration and scalability – and will most likely be more cost-effective alternative rather than implementing multiple systems. When a best-of-breed solution is purchased, separate licenses must be purchased, which usually becomes expensive – and you need to take into account the total cost of ownership (TCO) at installing, deploying, upgrading and maintaining multiple systems. A unified system’s cost tend to be smaller, and by having one, unified system, there are less contracts to keep track of, and renewals only happens once. When negotiating for an ERP package, the customer has the advantage that with a larger purchase there is a better chance of cutting a deal on the price, on the number of support hour, etc. etc. With the best-of-breed packages the ticket price may be lower, and there is little chance of negotiating. A best-of-breed solution can make it difficult to get optimal value from your combined enterprise software, and you run the risk of paying for overlapping functionality. Best-of-breed solutions may split processes between software modules, and require double (and
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