Technology
François Lévesque
Technical Director at Witify
Selecting an Enterprise Resource Planning (ERP) system is a crucial decision that can affect many aspects of your business. With the range of options available, from custom-built solutions to off-the-shelf options, how do you determine the best path forward? This article explores the factors to consider to make an informed choice.
Disclaimer
Witify is a custom ERP development firm and the publisher of Statim ERP, a pre-made solution for established SMEs. This dual role provides a concrete, real-world perspective on the strengths, limitations, and actual costs of different ERP approaches.
The aim of this article is not to promote a solution, but to help decision-makers understand the possible choices and their short, medium and long-term implications.
This article is intentionally detailed. If you're in a hurry, here are the main points to remember.
A self-assessment tool is provided at the end to help guide your decision.
The choice between a custom-built ERP and a pre-made ERP is too often approached as a purely technological or budgetary decision. In reality, it is a structuring decision for the organization, comparable to a choice of business model or operational governance.
An ERP system directly influences:
In many cases, the real choice is not between "custom-made" and "off-the-shelf", but between:
Both approaches can be rational, efficient, and economically justified in the right context . It is precisely this context that we will dissect in the following sections, analyzing specialized ERPs, general-purpose ERPs, and custom ERPs from the perspective of costs, risks, and the real value created.
When comparing a custom ERP to a pre-made or off-the-shelf ERP solution, it's important to understand that there isn't just one type of ERP software available. The market is structured around three main distinct approaches, each responding to different organizational and economic logics.
These approaches are not inherently better or worse. They address varying levels of complexity, operational maturity, and investment capacity.
In simplified terms, ERP options can be grouped into three main categories:
This distinction is fundamental, because it directly influences:
Specialized ERP systems are based on the idea that a given industry shares enough common processes to be standardized in a single software solution. They aim to integrate recognized industry practices and limit functional discrepancies from the outset.
General-purpose ERPs, on the other hand, adopt a cross-functional approach. They offer a very broad functional base, accompanied by configurable modules, with the aim of adapting to a maximum number of business contexts.
Custom ERP systems follow a fundamentally different logic. They are based on the principle that an organization's processes are unique, or sufficiently different, to justify building a system precisely aligned with its operational reality.
In ERP projects, failures or cost overruns rarely stem from the technology itself. They are most often related to a misalignment between:
Understanding these three approaches therefore allows for a more objective diagnosis, even before discussing features, suppliers or budget.
In the following sections, each of these options will be analyzed in depth, with concrete examples of solutions, a realistic reading of the costs, as well as the advantages and limitations observed in the field.
Specialized ERPs, also called vertical ERPs, are designed to meet the needs of a specific industry. Unlike general-purpose ERPs, they integrate from the outset processes, business rules, and terminology specific to a given industry.
This approach aims to reduce the initial setup effort and accelerate system adoption by teams.
A specialized ERP is based on a central assumption: companies in the same industry share enough common practices to be standardized in a single software.
These solutions typically include:
The objective is clear: to limit specific developments and offer a solution that is quickly operational.
This type of solution can be found in many sectors:
These ERPs are often developed by publishers with strong sector expertise and a significant installed base in their target industry.
Vertical ERPs offer several clear advantages, particularly for organizations whose processes are relatively standard within their industry.
Firstly, deployment is generally faster. Since the basic workflows are already modeled, implementation relies more on configuration than on development.
Secondly, initial alignment with industry practices is often high. Teams more readily recognize their reality within the system, which facilitates adoption.
Finally, initial costs are generally more predictable. The effort required to achieve a functional system is better managed than with a more generic or custom solution.
However, these advantages come with a downside.
The main limitation of specialized ERP systems is their rigidity. When a company deviates from the model intended by the vendor — whether through innovation, diversification, or growth — the system can quickly become restrictive.
Specific requests are then dealt with in the form of workarounds, additional modules or proprietary developments, which are often costly and difficult to maintain.
Another significant risk is vendor lock-in. Updates, product direction, and even some operational decisions become tied to the vendor's roadmap.
From a financial perspective, a specialized ERP system typically has the following cost structure:
While the initial cost may seem reasonable, the total cost of ownership must be assessed over several years, taking into account the actual evolution of the business and its ability to remain within the framework provided by the solution.
General-purpose ERPs occupy a central place in the business software market. Unlike industry-specific ERPs, they are not designed for a specific sector, but to cover a wide range of business contexts using a single, modular platform.
They are often perceived as a compromise between flexibility and standardization, and are a frequent option in comparisons between custom ERP and off-the-shelf ERP.
A general-purpose ERP is based on a horizontal approach. It offers an extensive functional base covering the major functions of the company: finance, operations, sales, inventory, human resources, projects, etc.
Adaptation to a specific industry or organization is primarily achieved through:
The objective is to provide a framework broad enough to meet diverse needs, without significant custom development.
General-purpose ERP systems are found in organizations of all sizes, from SMEs to large corporations. These solutions are often recognized for their maturity, stability, and international presence.
They are generally based on:
These ERP systems are particularly widespread in multi-site organizations, growing groups, or companies seeking a standard solution recognized by the market.
The main advantage of general-purpose ERP systems is their broad functional coverage. They allow for the centralization of a large number of processes within a single platform, thus reducing the need for multiple tools.
They also offer a certain perceived longevity. Their large installed base and product roadmap often reassure finance and IT departments.
Finally, their ecosystem is a significant advantage. The availability of consultants, additional modules, and integrations reduces the risks associated with the daily operation of the system.
In contrast, general-purpose ERPs present several well-documented challenges.
The first is configuration complexity. Adapting a solution designed for “everyone” to a specific operational reality requires time, trade-offs, and often compromises.
The second challenge is the gap between the company's actual processes and those proposed by the system. This gap frequently manifests as:
Finally, general-purpose ERPs can induce forced organizational changes, where the company adapts to the software rather than the other way around.
The cost structure of a general-purpose ERP is generally more complex than that of a specialized ERP, particularly in the medium and long term:
Although these solutions are often justified by their robustness, their total cost of ownership must be rigorously analyzed, especially from a growth or operational differentiation perspective.
A custom ERP is a system designed and developed specifically for a given organization, based on its actual processes, operational constraints, and strategic vision. Unlike pre-made, specialized, or general-purpose ERPs, it is not based on a standard model to be adapted, but on a faithful modeling of the company's reality.
This approach is less widespread, but it remains relevant in very specific contexts, where existing solutions reach their limits.
A custom ERP is not simply personalized software. It is a strategic internal product , designed as an extension of the company's operations.
In practical terms, this means that:
This approach requires a thorough analysis of upstream operations, as well as an ability to prioritize and structure needs over time.
The main advantage of a custom ERP is alignment. When the system accurately reflects how the business operates, the efficiency gains are often tangible.
Among the observed benefits:
A custom ERP can also become a competitive advantage . In some sectors, how a company operates constitutes a significant part of its value. Standardizing these processes in a pre-made ERP can then dilute this differentiation.
Unlike an off-the-shelf solution, a custom ERP evolves at the pace of the company, and not according to the roadmap of a publisher.
This allows:
This flexibility is particularly relevant in contexts of rapid growth, diversification or organizational transformation.
However, a custom ERP implies a higher level of responsibility for the organization.
The main risk is not technological, but organizational. Without clear governance, a product vision, and rigorous prioritization, a custom ERP can become difficult to maintain or evolve.
The dependency is no longer on a publisher, but on a development team or a technology partner . This requires:
From a financial perspective, a custom ERP stands out clearly from pre-made solutions.
We generally observe:
In the long term, the total cost of ownership can become comparable to, or even lower than, some pre-made solutions, provided that the system is well governed and developments are aligned with a measurable business value.
Comparing a specialized ERP, a general-purpose ERP, and a custom ERP solely based on functionality is rarely sufficient. The most significant differences emerge when analyzing the overall budget , timelines , maintenance , updates , and scalability over several years.
This cross-sectional reading makes it possible to go beyond commercial promises and to assess the real cost, risks and long-term value created.
| Criteria | Specialized ERP | General ERP | Custom ERP |
|---|---|---|---|
| Entry fee | Moderate | Pupil | High (development) |
| Total cost of ownership | Growing with adaptations | High and recurring | Manageable in the long term |
| Implementation times | Fast if standard processes | Long and structuring | Variable, often in phases |
| Project risks | Initially low, they increase beyond standard. | Complexity and change management | Depends heavily on the framing |
| Maintenance | Outsourced, little control | Outsourced, publisher dependency | Shared, more control |
| Updates | Imposed by the publisher | Imposed and sometimes burdensome | Planned according to internal priorities |
| Capacity for evolution | Limited outside the planned area | Large but complex | Very high |
| Strategic alignment | Good if standard needs | Correct but rigid | Excellent |
Specialized ERP systems typically have a moderate entry cost. Licenses are often more affordable than those for general-purpose ERPs, and initial setup is faster. However, as needs deviate from the intended standard, customization and support costs can increase significantly.
General-purpose ERP systems often have a higher initial cost. The licenses, configuration, and support required represent a significant upfront investment. In return, these solutions offer extensive functionality, but at the cost of increased complexity and high recurring expenses.
Custom ERP systems require a larger initial investment, primarily related to development. However, they eliminate licensing costs and allow for better long-term budget control. The total cost of ownership depends heavily on the quality of the architecture and the governance structure implemented.
Specialized ERP systems are generally the fastest to implement, as long as the company's processes align with the model designed by the solution. The risks increase when significant adaptations are required.
General-purpose ERP systems involve longer implementation times. Configuration, training, and change management represent major undertakings, especially in complex or multi-site organizations.
Custom ERP systems have varying timelines, directly linked to the project's scope. When well-defined, they can be deployed in phases, with a gradual rollout. However, if poorly defined, they can expose the organization to risks of cost or schedule overruns.
With a specialized or general-purpose ERP system, maintenance is largely outsourced to the software vendor. This reduces the internal workload but limits control over priorities, fix deadlines, and technical direction.
In a custom ERP system, maintenance becomes a shared responsibility. It requires technical discipline and the ability to plan for future developments. In return, it offers better control of technical debt and greater transparency regarding actual costs.
Updates to pre-built ERP systems are mandated by the vendor. They often bring improvements, but can also introduce unwanted changes or regressions, requiring costly adjustments.
In a custom ERP system, updates are scheduled according to the company's priorities. This flexibility allows the system to evolve at the organization's actual pace, but requires clear governance to avoid the accumulation of temporary fixes.
Specialized ERP systems offer good performance as long as the company stays within the framework defined by the solution. As soon as processes become distinctive or innovative, the ability to evolve can become a limitation.
General-purpose ERP systems offer great functional extensibility, but at the cost of increased complexity. Evolution is possible, but often slow and expensive.
Custom ERP systems offer the best strategic alignment capabilities. They allow the system to evolve alongside the business model, making them a powerful lever for organizations whose processes constitute a competitive advantage.
The debate between off-the-shelf and custom ERP is often poorly framed. It's not about pitting one solution against another, but about understanding which approach best aligns with the company's operational realities, maturity, and ambitions.
Off-the-shelf ERP systems, whether specialized or general-purpose, effectively meet the vast majority of needs. They offer more predictable costs, shorter implementation times, integrated best practices, and a generally lower level of technological risk. For organizations with standardized, well-defined processes aligned with industry practices, these solutions often represent the best compromise between value, speed, and security.
Conversely, a custom ERP is not a default alternative to an existing solution. It is a strategic choice, relevant when processes constitute a competitive advantage, when operational complexity exceeds standard models, or when the company wants to maintain complete control over the evolution of its information system. In these contexts, customization allows for optimal alignment, but at the cost of a larger initial investment and more rigorous governance.
In practice, the question to ask is therefore not “Custom ERP or pre-made ERP?”, but rather:
A poor choice of ERP rarely costs much on the first day. It costs much in the long run, through the accumulation of workarounds, rigidities, hidden costs and strategic limitations.
This is why an ERP decision should always be preceded by a structured and objective assessment, taking into account operational, financial and organizational issues — and not just functionalities or initial cost.
Finally, we offer a self-assessment tool to help determine whether your organization is better suited to an off-the-shelf ERP or a custom-built one. This exercise aims to inform your decision-making process before you even compare vendors or solutions.
Self-assessment: Which ERP approach is most aligned with your reality?
Choosing an ERP system is a major decision that goes far beyond simply comparing features or initial costs. This self-assessment aims to help you gain perspective on your specific situation by evaluating how well your organization is aligned with different ERP approaches: off-the-shelf, specialized, or custom-built.
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François Lévesque
Technical Director at Witify
François Lévesque is co-founder and Technical Director of Witify. Specializing in the management and development of complex software and web projects, he has spent the last 8 years developing customized ERP, Intranets and CRM systems. Throughout his career, he has developed in-depth expertise in software engineering, with a particular sensitivity to translating business objectives into precise technical requirements. With extensive expertise in data analysis and visualization, François has also successfully led numerous data projects with government institutions.
