8 Reasons For Selecting SAP Business One Over Custom/Local ERP

By Dattatreya R.Kulkarni Posted February 06, 2017 In Benefits of SAP Business One, Management
Customers evaluate ERP solutions based on several criteria which may include fitment of processes, scalability of solution, ease of use, cost etc. During this evaluation, they are likely to come across custom developed/locally developed ERP applications available in the market. In fact, they may get attracted to them given that they cost very less upfront. On the other hand, they would evaluate a world class ERP application like SAP Business One. The initial investment may appear to be high (which in reality is not the case, as you will learn in this document) in comparison to the local ERP.
Customers need to note that investment in an ERP is for mid to long term and that they need to keep long term vision in mind and conduct the due diligence of the options accordingly. Here are eight key points of comparison, which could help customers in their evaluation process and make an informed decision.
SL.No.
Description
SAP Business One
Custom Developed ERP
1
Risk associated with Product
SAP is world’s leader in ERP and technology solutions. In particular, SAP Business One is being used by more than 50,000 customers globally including India. This fact practically eliminates any product related risks.
Much smaller customer install base if any (for local ERP products). Typically keep undergoing corrections on basic processes, bug fixing and so on. If the solution is being developed for the first time then the development time can run into year(s) and functionalities get released in a piece meal.
Not only does the customer not get to use the complete solution quickly, they also lose time and with it, they incur a cost of missed opportunities.
2
Support
SAP has a large partner base and customers have a choice to move from one to another if they are not satisfied by the quality of service.
Plus, SAP itself provides help desk support if the issue is escalated to them by partner(s).
Customers have to depend only on one single company that has developed the solution. Being a small entity it can face business challenges like lack of resources, financial instability etc. which can have an adverse impact on the service quality.
3
Business functionalities
Product is developed keeping the global market in mind. It incorporates best practices from across the world. However, it is possible that some small functionality (very peculiar to any industry vertical) may have to be customized during the project implementation.
Alternatively, customers also have an option to buy add-on solutions developed by some other partner to reduce the deployment time.
If the product is developed afresh for a customer, then it is likely to address almost every process that the customer wants (which may or may not be the best practice).
However, such applications may not stand the test of time.
4
Ease of modifying solution with changing needs
Customization is quite easy in SAP Business One. User can add new fields and tables on the fly using the front end of the application. For a complex development, SAP’s software development kit can be used by the partner to deliver seamless solution.
When changes are required to the solution customer is likely to face challenges on account of either lack of flexibility in the product, unwillingness of developer to make changes, non-availability of resources at product developers end etc.
5
Flexibility
Easy and quick customization capability makes the application quite flexible
Making changes to any functionality becomes difficult. Even for adding new fields customer has to depend on the product vendor, who may or may not be able to appreciate the business urgency.
6
Help documentation
Available publically on SAP’s help website. It is kept updated in line with new functionalities added to the product
Chances of getting documentation are very limited.
7
Incorporating new technology
SAP is a world leader in ERP products and invests significant resources in updating the computing technologies in their products. This benefits not just new but existing customers as well.
Very unlikely that a small company would be able to do this. Hence customers get stuck with a technology that may have become obsolete.
8
Scalability
SAP Business One is designed and developed in a manner that protects customers’ investment over a long period of time. It has the capability to keep scaling up to match customers’ business growth.
Support multi-location, multi user with ease. Customer can keep adding more users, more locations, as required.
Scalability is a question mark & hence a risk for the customer, who may have to shelve the ERP and go for new one that would support the increased business. We have encountered several such cases.
As evident, SAP Business One offers many advantages as compared to custom developed ERP and can serve as a strong operational back bone in the company’s IT landscape.
Customers need to think strategically and not get distracted by the appeal of “low cost” of custom/locally developed ERP solutions. They must realize that the low cost ERP is very likely to pave a road full of pot holes for the company’s journey in the future. They should in fact lay the IT foundation in the form of SAP Business One, which not only helps them become more transparent and efficient in operations but can also serve as source of valuable data for performing analysis of company’s performance across various dimensions.
Praxis has helped several companies for different industry sectors in implementing SAP Business One solution successfully. To learn about the same, please contact us at sales@praxisinfosolutions.com

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