ORGANIZATIONS planning to implement ERP system must realize that developing an ERP package is a very complex and time-consuming process that requires a lot of skilled manpower and other resources. (http://www.erppandit.com/make-or-buy-ERP-system.html) Though they may have personnel on their payrolls who can absorb the necessary knowledge and who have experience in developing sophisticated systems, the problem is that ERP package development is not the main business of these companies. By developing the ERP package by themselves they will be directing all of their available resources into improving their own products or services so that they can remain competitive and better serve their customers.
What these organizations must understand is that the ERP system vendors are people who have invested huge amounts of time and effort in research and development to create packaged solutions. ERP vendors spend billions in research and come up with innovations that make the package more efficient, flexible and easy to implement and use. Also with the evolution of new technologies the vendors will be able to constantly upgrade their product to take advantage of the best and latest advancements in technology because their main focus is on improving the capabilities of their tools.
Since designing and implementing ERP systems is not the business of most companies, or focus of their executives, the systems developed by the team will never equal in quality, scope, functionality, or technology with those created by software firms. These software firms or ERP package vendors can produce sophisticated packages and provide their clients with products that allow them to maintain a focus on their own chief activities, thus improving revenues, profits and shareholder returns.
In older times there were not many vendors that were producing ERP packages; hence, quite often a company needing a specialized ERP system was left to their devices and ingenuity to develop something that would suit their needs. In today’s marketplace, there are many ERP package vendors and they are actively pursuing all the niches and circumstances where ERP systems can solve problems of organizations.
Thus, it always better to buy ERP packages. ERP systems are getting better, bigger and have more features. Also, people who are specialized in developing such types of tools have developed them. Most of the tools would be customized to suit your needs. So unless and until your project or organization has a need that cannot be fulfilled by the available tools, it is better to buy the tools rather than make them.
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