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There are a variety of vendors and types of software out there to choose from. You can choose any system from a canned system which is also known as an “out of the box” system, to a customized system. There is also an option of a configured (also known as tailored) system that gives you a bit of the benefits of both a canned system and configured system. After reading this article you should have a better understanding of why the approach of building your ERP system will be beneficial.
A canned system is usually developed to supply the tools needed for a certain industry and then sold to thousands of company’s. The problem with this is that an organization that makes Twinkies has a completely different process then an organization that makes shoes. If both of these organizations choose to purchase a canned out of the box solution that is the same; how can it be beneficial to them when their company’s are so different? The answer is “It’s not!” Both organizations are going to have to change their process to fit the software and this can hurt a business. Employees will have to change their routine and in the long run the software is not helping the company become any stronger than the other.
Building a customized system will allow your business to build their software just as they would like and to fit their processes. If both a Twinkie company and a shoe company purchase the customized system their end result will be two completely different pieces of software to fit their needs. This sounds like the better choice but a customized system can be extremely expensive and take up to two years to build. So now what?
What about the option that has benefits of both? This would be the configured or tailored system. A configured system usually starts with a base framework; a roughed draft that is then “tailored” to fit your business and its processes. The benefit: a system that is affordable and a system that will be developed to fit your needs! Configured systems can use your terminology, have only the necessary screens you need and give your business a durable, competitive advantage!