Every growing company eventually faces a tough financial decision: whether to invest in multiple software solutions to address the IT needs of each separate department (accounting, sales, logistics, Human Resources, etc.) or to invest in a single ERP solution that addresses them all.
To answer this question, let's examine the two solutions in three key financial areas: upfront costs; maintenance and monitoring costs; and software integration costs.
Although every situation is unique, a single ERP solution is consistently the best long-term investment for nearly every enterprise in each of these three key areas.
From the point of view of the purchase price, there is really no need for a detailed comparison. If your company is buying all its enterprise applications from a single software maker in a single purchase, you are bound to get a deep discount per unit. That's how enterprise sales work.
On the other hand, if you are buying your enterprise software piecemeal, you will be paying full price to each separate software maker. This is one of the best reasons to choose a comprehensive ERP solution. You are essentially buying your accounting software, your CRM software, your inventory software, your logistics software, and so on, all from a single software maker in a single purchase. Naturally, each unit will cost you far less than it would under a multiple-software solution.
Maintenance and monitoring costs
Keeping up with the relentless stream of software updates coming at us from all directions is a struggle for even the most cutting-edge companies. As hackers become increasingly advanced, timely security patches are becoming increasingly critical. As product life cycles become ever-shorter, software version updates are happening more often.
At the same time, every company in today's competitive world needs to go beyond ensuring that their software is secure, bug-free and updated. It is of equal importance to perform 24x7 performance monitoring to ensure that the entire system is running optimally, entirely free of bottlenecks that could slow down the entire company.
Clearly, an ERP solution is far less costly to maintain and monitor than a loose collection of separate software systems. With some ERP software, updates are as often as every two weeks, for example, a single update will roll out across the entire enterprise at once. And a single monitoring system is all that is necessary to address performance across the entire system.
Software integration costs
Anyone who has ever tried to integrate two proprietary software applications from two different software makers knows that it can be irritating and expensive. Moreover, despite the high cost, generally, the best one can hope for is a low-level, lightweight integration. Still worse, every time one of the two systems gets an update, the integration often breaks and you have to spend more to fix it.
Nevertheless, as problematic and expensive as it is, integrating two proprietary applications is trivial when compared to the task of integrating five or ten. The problems and costs multiply exponentially to the point that anything beyond sharing the most basic data company-wide often becomes impossible without spending a fortune.
On the other hand, an ERP solution already has this costly problem solved in advance. Complete, enterprise-wide integration comes free. Every software application is specifically designed to work with the others at a high level, sharing rich data and business processes seamlessly across the entire enterprise. On Day One, the accounting software will automatically share data with the CRM software, and the CRM software with the logistics software, and so on.
The clear cost advantage of ERP
For the cost savings, is your growing company invest in multiple software solutions or a single integrated solution(ERP)? To have clear opinion, we've pay close attention in those three key financial perspectives:
First, we found that the deep discount per application provided by an ERP solution gives ERP the clear purchase-price advantage.
Second, we found that the simplicity and efficiency of company-wide updates and performance monitoring under the ERP approach give ERP a decisive advantage for maintenance and monitoring.
Third, we looked at the undeniable cost advantage that ERP's built-in, high-level software integration has over the expensive, low-level integration that companies must settle for under the multiple-software approach. Having compared the two solutions in these three key financial areas, ERP is clearly the best investment for every enterprise planning for a strong financial future.
Make it Happen with the beloved and strong Odoo ERP for your own company sake, growth and benefit realization. We will support you on its implementation and ensure that you grow and benefit are realized out of Odoo ERP as well as analysis on the Total Cost of Ownership(TCO) to ensure valid investment decisions.