When a business decides to implement an Enterprise Resource Planning (ERP) system, one of the key decisions they need to make is whether to integrate it with their existing software or adopt an out-of-the-box ERP native solution that includes all necessary features. This article explores the pros and cons of integrating with existing software, using the example of continuing to use third-party CRM when adopting an ERP system with a built-in CRM.
Pros of integrating with existing software:
Cost: The cost of integrating with existing software versus adopting an out-of-the-box ERP solution is dependent on various factors, including the complexity of the integration process. Integrating with existing software can be a cost-effective solution for businesses, especially if they have already invested in third-party software. The business may have already invested in marketing automation, sales tools, and customer service software, so they can continue to use these tools and simply integrate them with the ERP system. However, the cost will vary depending on how robust and complex the integration is, and it's important to consider this aspect carefully when making the decision.
Familiarity: When a business integrates with existing software, employees can continue to use tools they are familiar with, reducing the need for additional training. In the case of existing third-party software, employees may already be familiar with the solution, so integrating it with the ERP system can make the transition smoother.
Customization: Integrating with existing software allows businesses to customize their ERP system to meet their specific needs. For example, a business using third-party software may have already set up custom workflows, reports, and dashboards, which can be integrated with the ERP system to provide a more comprehensive view of their operations.
Cons of integrating with existing software:
Limited functionality: Integrating with existing software may result in limited functionality, as not all features of the ERP system may be available through the integration. This can limit the business's ability to take advantage of all the features that the ERP system has to offer, which may impact their ability to optimize their operations.
Integration issues: Integrating with existing software can be complex and time-consuming, and may require specialized expertise. If the integration is not done correctly, it can result in data discrepancies, duplicate data, and other issues that can impact the accuracy of the ERP system.
Dependence on third-party software: When a business integrates with existing software, they become dependent on the third-party software to work properly. If the third-party software experiences issues, it can impact the performance of the ERP system, potentially resulting in downtime and lost productivity.
Integrating with existing software can be a cost-effective and familiar solution when adopting an ERP system. However, it may also result in limited functionality, integration issues, and dependence on third-party software. Ultimately, the decision of whether to integrate with existing software or adopt an out-of-the-box ERP solution will depend on the specific needs and circumstances of each business.
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