Custom ERP Software is just how it sounds. It is build specifically for each company, but this can cause many problems. Custom Software is not tested, so it must be tested as it is built. One or more programmers build the system for over time. This process can take a year or more, which translates into a costly system. Once the system has been implemented modifications can be made, but that also takes a long time since testing must be done again. Custom Software is great in a situation where a pre-packaged software will not work, but many companies can not afford or wait for a custom solution. The greatest downfall of custom software is that upgrades to the system require a rewrite of the code, which requires additional dollars. In addition, custom systems need a programmer who knows the code to maintain the system, so if that programmer leaves, the system often becomes inoperable. This is why custom or homegrown systems are often replaced.

The main benefit of Pre-packaged or Generic ERP Software is that it is “out-of-the–box” so it can be implemented and upgraded immediately. The best Generic Software does not have the bugs that a Custom Software may have. If you can find an out-of-the-box software that is made for your type of business, it can include “Best Practices” which change your procedures become more efficient. Generic Software also has many detriments. It is very difficult if not impossible to change when needed. It is designed to force the user to conform to the way the software company has decided that you should do them.

Why is that bad? It’s bad because some of your practices might not be possible with the software. These practices could give your company an edge over your competition and lead to your success. But pre-packaged software companies do not care if your business succeeds, they are focused on selling their software as many times as possible with as few complications as possible. Any changes that they make will cause problems when you need to upgrade your system, so modifications are discouraged.

Tailored ERP Software is harder to find, but provides many of the best features of both custom and off-the-shelf software while overcoming most of the draw backs. As the name implies, Tailored Software can be changed to suit each situation. Most configured software begins with a developed structure. Like a custom software, one can request new screens, reports and charts when configuring a Tailored Software. But unlike Custom Software, the high price and time consuming process of building the software from the ground up is replaced by molding a pre-existing framework. The best part of a pre-packaged software – quick and easy upgrading – is also included in Tailored Software. Plus, while the software changed to suit the processes that have made each company efficient and competitive, any best practices or other improvements as possible as well.