Dazzle 9 - Jewellery ERP

Benefits of an ERP

Enterprise software such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are unique. Because every business that uses them is different, ERP and CRM software must be custom tailored to the needs of each business. Traditionally, that has meant either custom developing an ERP or CRM system for the specific requirements of an organization or purchasing an existing ERP and CRM system and customizing it.

Both approaches have significant issues. Custom development projects often start innocuously. "We know what we need, so let's do it." "Doing it" in software development, though, could be expensive and risky, and the majority of custom software development projects ultimately fail to meet the needs of the users.

But the greater risk is actually "knowing what you need." Even if the custom developed software met the needs at the time it's developed, it may not follow best practices in the industry or properly anticipate the long-term needs of the organization. As technology and business needs change, the organization is saddled with the burden of modifying the software. This is why industry studies have shown that long-term maintenance costs are often three to four times the original cost of software development.

Purchasing a commercial ERP or CRM system from a vendor presents a different set of issues. On the surface, this option may seem appealing because it eliminates the risk of custom development, obtains both industry best practices and the latest technology, spreads out development costs across the vendors' customer base, and makes the vendor responsible for long-term maintenance of the software.

In reality, commercial ERP and CRM software could be expensive and difficult to customize, and leave the user vulnerable to "vendor lock-in." Commercial software requires significant upfront licensing fees, often before an organization truly understands whether the software will fit its needs. It is also written based on the vendor's vision of an "ideal" company. If that deviates significantly from the user's reality, there is limited ability to change it because you don't have access to the source code. Finally, if the vendor is bought, goes out of business, or simply discontinues a product, the user may be left without any means to support his applications.

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