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Industry-Specific vs. Generic ERP: A Comprehensive Comparison
By Mukesh Variyani June 18, 2019 Business
Industry-Specific vs. Generic ERP
Confused between an industry specific ERP and a generic ERP? Here’s everything you need to know to make an informed decision for your business.
That's a big part of the process: making the right choice from the beginning. Not getting distracted by shiny things. - Marti Noxon
When it comes to ERP software, businesses must choose between a generic ERP and an industry specific ERP software. The best choice depends on your unique operational needs and goals. While generic ERP solutions provide standard features applicable to many industries, industry specific ERP is designed to cater to specialized business processes within a particular sector.
Generic ERP
A generic ERP system provides universal modules and features suited for most types of businesses. It typically includes finance, HR, inventory, and supply chain management. However, it lacks the flexibility required for niche processes. The software is not enough flexible to do customization or addition of features in it. They have pre-built functions that support all the major activities and modules such as finance, accounting, human resource management, supply chain, etc. The generic ERP is best suited for small holdings or businesses that are not clear about the industry that they lay in or about the specific functions that they require. Generic ERP is ideal for small businesses or startups seeking cost-effective ERP implementation without the need for deep customization.
Industry-specific ERP
Industry specific ERP Software, on the other hand, are very flexible and provides the possibility of adding features and integrating the add-on customization as per the specific industry that your company belongs to. It is a solution that is made according to different requirements and needs of various departments in your business. Industry specific ERP helps the business to simplify and fasten the planning and decision making of your business. Industry specific ERP can also manage functions of a company which is present globally. It can help to reduce the confusion which is cause when a company is present in a lot of countries. In short, the Industry Specific ERP provides the advantages of speed, efficiency, and convenience.
How to decide?
Implementation of ERP can be complex and expensive. Choosing between a generic ERP and an industry specific ERP depends on key business factors. Below are some criteria to help you determine which ERP system fits your company best.
Price
Your ERP budget plays a major role in choosing the right solution. Generic ERP usually has a lower upfront cost, while an industry specific ERP software might require more investment but offers better alignment with your processes.
Flexibility
A generic ERP may limit future upgrades, whereas an industry specific ERP provides greater flexibility and scalability to support long-term business growth and evolving needs.
Functionality
Identify if your business requires specific features from the start. If yes, opt for industry specific ERP software. Otherwise, generic ERP can work with standard functions and minimal customization.
Industry-Specific vs. Generic ERP
Here are some key differences to help you compare industry specific ERP software with a generic ERP system:
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Industry specific ERP reduces implementation time and cost due to its targeted setup, while generic ERP is more affordable but may need more adjustments.
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Maintenance is generally easier and less costly with industry specific ERP software compared to a generic ERP.
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Industry specific ERP provides a competitive edge with tailored features for your niche.
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Generic ERP systems offer a one-size-fits-all approach, while industry specific ERP solutions are built with industry-centric features.
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Customizing a generic ERP can increase overall costs, whereas industry specific ERP software comes pre-equipped for customization.
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Generic ERP systems are ideal for businesses with basic requirements or little ERP experience.
Final words
There is no one-size-fits-all solution. Whether you go with a generic ERP or industry specific ERP software depends on your unique business needs. Evaluate your requirements thoroughly while choosing the right ERP software. The ultimate goal is to align your ERP system with your business objectives to improve efficiency, productivity, and decision-making.
Mukesh Variyani
MD, Finbyz Tech Pvt Ltd
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