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Industry Specific vs Generic ERP
By Mukesh Variyani June 18, 2019 Business
Industry-Specific vs. Generic ERP
Are you confused between Industry-Specific and Generic ERP? Here’s what all you need to know before you make a decision.
That's a big part of the process: making the right choice from the beginning. Not getting distracted by shiny things. - Marti Noxon
There are plenty of ERP software available in the market. It totally depends upon your needs and requirements which software is best for you. In broader sense there are general or generic ERP software and specific to your industry ERP software available in the market.
Generic ERP
Generic ERP as the name suggests is the software that fits or is common for all the industry and businesses. It contains all the major and general functions that are required by most of the business organizations to automate their 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 considered to be a cost-effective solution. So, if you are a start-up or a small business, looking for ERP implementation, Generic ERP Software is just for you.
Industry-specific ERP
Industry-specific ERP, 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 Industrial Specific ERP provides the advantages of speed, efficiency, and convenience.
How to decide?
Implementation of ERP in the business is a long and costly process. It is important to understand that which type of ERP is most suitable for your company. There are some key factors that may help you in making the right choice for your business.
Price
The major factor that can help you to decide the kind of ERP software you need is the budget you have decided for the software and its implementation. The price offered by different vendors can help you decide which ERP Software is most efficient for you. It can help you to select what you actually need and what features you are ready to be paying for.
Flexibility
It is important to decide and choose the ERP system that not only caters your current business needs but is flexible enough to provide you benefits for future growth.
Functionality
Analyze your needs for the functionality of ERP software. Either you need the service as per your specific needs in near time or you can go for the generic one to provide and adjust as per the requirements of your business.
Industry-Specific vs. Generic ERP
There are some specific key points that show the major differences between both the type of ERP software.
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Industry-specific ERP has minimum implementation costs while generic ERP offers overall cost-effectiveness due to less functionality.
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Industry-specific ERP has lesser maintenance costs then generic ERP.
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Using the Industry-specific ERP Software provides competitive advantages in the market.
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Generic ERP software serve the purpose of “one-fits-all”, while Industry-specific ERP is tailored for different industries.
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Customization and innovation in Generic ERP lead to an increase in the costs for the business.
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Generic ERP offers pre tailored major functions that may be suitable for small businesses that have no or minimum expertise in the use of ERPs.
Final words
There is no clear difference in both that can stress the advantages of one over the others. It totally depends on your business needs and requirements while choosing the right ERP software for your company. Both have their pros and cons in their own aspects. The organization should analyze and test itself on the factors mentioned in the article to be sure of their choice. The main aim of every business is to simplify the tasks that can contribute to achieving their objectives. Thus, the right fit can be selected by aligning the business goals.
Mukesh Variyani
MD, Finbyz Tech Pvt Ltd
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