The choice between Best of Breed versus Fully Integrated Software is not straightforward.  As always, there are advantages and disadvantages and depending on whom you talk to will depend on what advice you receive.

Best of breed (BOB) means using a specific software program or package for each specific application or requirement.

Fully Integrated Software (FIS) is a software package with a number of integrated modules to cover a range of functions and requirements.

I have attempted to take an objective view, but nevertheless there will be those who disagree.

BOB advantages:

•       Less risk if implemented piecemeal
•       Can get away with poor data accuracy
•       Better fit out of the box
•       Less consultants
•       Task by task easier to use
•       Easier to replace
•       All stand alone systems don’t need to be dumped
 

BOB disadvantages:

•       Skill set required internally more diverse
•       Harder for IT to maintain
•       Less chance of “cutting a substantial deal with one vendor”
•       Various ‘look and feel’ across the company
•       Total cost of ownership higher
•       Usually smaller operators/higher risk
•       Less likely to have local representation
•       From overall company perspective, harder to use
•       Project management over several projects an issue
•       Various views of the customer, product, process
 

FIS advantages:

•       Look and feel similar across the company – easier to train
•       No integration issues/middleware
•       Upgrade “once”
•       Manage one relationship/maintenance agreement
•       Easier to implement because one solution
•       Skill set internally simplified for maintenance
•       Total cost of ownership lower
•       Stable corporations – less chance of failure/takeover
•       Specialised resources more plentiful
•       More likely to have local representation
•       More chance of cutting a deal across all modules
•       Company wide easier to use
•       Project much easier to handle
•       One enterprise view of customer, product or process
 

FIS disadvantages:

•       Dependent on one vendor
•       Less function rich in some modules
•       Basically need to implement all ERP modules in one hit
•       Requires company resources
•       Less likely to “listen and do”
•       More risk if implemented across the board
•       Poor data accuracy compounds?
•       Pockets of less good fits (but Tier 1 have huge flexibility)
•       This complexity requires consultants
•       Task by task harder to use
•       Harder to replace
•       All stand alone systems need to be dumped except possibly finance?
         (or undermine integrity, reduce advantages)
•       Processes need to be aligned to package?
 

 
 
In summary, if you can get the resources to implement an ERP package, the overall cost and time required will generally be less than implementing the equivalent best of breed packages.  

Best of breed packages give you the option to spread the implementation over a longer time scale, but will take more time overall and may actually cost more in the end.  

Best of breed wins on degree of fit, but a fully integrated package wins on time, cost, resources, simplicity and project management.  

The best of breed approach does allow you to spread the cost and resources required for implementation so is a short term fix.

The decision will depend on size of the company, resources, culture and management style.

 
Stuart Bennie is a retail consultant at Impact Retailing.  Email Stuart.