| Custom ERP solutions | Ready-made ERPs | |
|---|---|---|
| TCO components |
Upfront investments + the cost of after-launch support and the evolution of the ERP. Lower TCO and higher ROI in the long run, compared to ready-made ERPs. |
Initial setup costs + customization and integration costs + subscription or licensing fees that scale as the number of ERP users grows. |
| Functionality |
Defined by customers and fully tailored to their needs and specific processes. The ability to use advanced techs (AI/ML, IoT, blockchain, etc.) for maximized business efficiency. |
Defined by an ERP product vendor. |
| Additional functionality | Non-restricted and can be introduced on demand as the customer's business scales or transforms. | Restricted to third-party plugins and add-ons. |
| Customization | Unlimited capabilities. | Limited capabilities, may require substantial investments. |
| Integration | Seamless connection to all required systems, including legacy software. | API-enabled integration with popular software products. Integration with custom and legacy systems may be complex or impossible. |
| Learning curve | Short due to convenient UX and intuitive UI tailored to various user roles. | May be lengthy due to complicated, standardized UX and UI. |
| Scalability | Non-restricted. | Restricted to the vendor’s platform capabilities. |
| Security | Minimized risks due to custom code design and the ability to add powerful security features. | Fully depends on the vendor’s security measures and cannot be controlled by the customer. |
| Legal compliance | Compliance with all required regulations (global, regional, and industry-specific). | Typically limited to compliance with global data protection standards. |
| Maintenance and support | Performed by an in-house team or an outsourced vendor, the customer decides on a preferred option. | Provided by an ERP product provider. |