August 27, 2024
Deciding to implement an Enterprise Resource Planning (ERP) system is the first big decision. Choosing between a composable or configurable option is the second. Start the selection process here.
What is a Composable ERP?
Also referred to as a “best-of-breed” approach, a composable ERP takes the leading tool in each domain—inventory management, financial planning, customer relationship management, etc.—and integrates those pieces together into one system for enterprise resource planning.
Pros
The value of a composable ERP is that each piece represents the best option available, so there are (theoretically) no weak points, making the overall system as robust as possible. Plus, since you select each component, a composable ERP does exactly what the business needs.
Cons
Integration is the downside of this option because building, maintaining, and securing linkages between software products and data silos can be a difficult and disruptive process. Composable ERPs may utilize the best parts, but this does not mean they will easily or automatically work together.
Requirements
Composable ERPs are a better option for manufacturers with large IT teams sophisticated enough to build, manage, and maintain a web of interconnected systems. Companies with unique ERP requirements are also good candidates.
What is a Configurable ERP?
A configurable ERP consists of multiple tools built by the same vendor and combined into a single platform. You then have the option to configure how the platform looks, feels, and functions based on business needs and user preferences.
Pros
The big advantage of a configurable ERP is the relative ease of selection, implementation, and operation. Working with one vendor will always be a faster, less expensive, and more manageable option than working with many. Configurable ERPs are also less susceptible to downtime and security incidents since they have fewer points of failure.
Cons
You may sacrifice some of the innovative and advanced features available in best-of-breed products and instead rely on one product that may be strong in some areas and weak in others. Getting a configurable ERP to perfectly meet the needs and wants of all users can also pose additional challenges.
Requirements
Configurable ERPs do not require extensive technical staff or skills, making them accessible to manufacturers of all sizes in all verticals. Since they may be more limited in terms of specialized or advanced features, however, they may not be appropriate for companies with unique or overly complex requirements.
Composable vs. Configurable ERP: Which Should You Choose?
Guide Technologies has spent years helping manufacturers select, implement, and optimize ERPs, and our advice is this: If a configurable ERP like Infor CloudSuite Industrial (CSI) can do 92-95% of what you need it to, choose that option over a composable ERP that can do 100% but only under optimal conditions. In most cases, the simplicity of a configurable system will be a greater asset than the specificity of a composable one.
A Hybrid Approach
Today’s technology also allows for configurable ERPs to adopt some of the flexibility of composable ERPs for “best of breed” if/where needed. For example, CSI has an advanced middleware called Infor OS (think embedded technical capabilities) to allow for integrating third-party products.
CSI has built-in key APIs (Application Programing Interfaces) for allowing tight integration with software from other vendors. This allows flexibility for vertical software options, such as for payroll, tax, and other interfaces where one vendor may be preferred over another for a variety of reasons. This gives companies the ability to benefit from the value of a configurable ERP, meeting most requirements without giving up the freedom of selected composable ERP options.
Discover the Right Approach for Your Business with Guide Technologies
Let our team of manufacturing and ERP experts help you discover the right approach for your business’s unique needs: Continue the ERP search and selection process with Guide Technologies as your trusted advisor. Get started today.
