Choosing between a packaged ERP and a custom build is a long-term decision. The right answer depends less on company size and more on how distinctive your processes are.
When off-the-shelf is the right call
- Your processes are fairly standard for your industry.
- You need to be live quickly and can adapt workflows to the software.
- You want vendor-managed updates, support and compliance features.
- Budget favours a subscription over a development project.
When custom pays off
- Your workflow is a competitive advantage and generic tools force compromises.
- You are paying for heavy customisation or many add-ons anyway.
- Per-user licence costs grow faster than your revenue.
- You need to integrate unusual systems, hardware or local compliance rules.
- You want to own the data model, roadmap and intellectual property.
Cost over time, not just day one
Packaged software is cheaper to start but accumulates licence fees, customisation and integration costs. Custom software costs more upfront but has no per-seat fees and can be shaped to your operations. Compare a three to five year total cost, including support and change requests.
A middle path
You do not have to choose entirely. Many businesses keep an off-the-shelf core for accounting and build custom modules or portals around it for the processes that make them different, connected through APIs.
Questions to ask before deciding
- Which three processes are most unique to us?
- How much of the package would we customise?
- What would vendor lock-in cost us if we leave?
- Who will maintain the system in two years?
- Can the system integrate with our other tools through open APIs?