Weighing the value proposition: build or buy enterprise software?
Companies might consider building their own systems in-house for time savings since their existing resources can get started right away. They are also driven to find cost savings upfront by building instead of paying an outside vendor to accomplish the same goals.
Additionally, companies consider themselves in the best position to know what their teams and businesses need. This is because they are most familiar with how they work, and building systems in-house gives companies full control.
However, buying a platform has its advantages too. What should companies look for when evaluating an enterprise software solution vs building their own?
Look at known and/or hidden costs that can happen in the long term.
Consider the risks of developing an in-house solution, for example, not benefiting from the collective expertise of the industry as a whole.
Assess if the platform has the flexibility to grow with your company as users, categories, products, brands, etc., start to increase.
Determine if the solution integrates with current and future third-party enterprise software.
Keeping up with shifting trends and evolving tech can sound daunting, but the right partner and strategy can alleviate that stress and let teams focus on delivering unique consumer experiences and quality product innovations instead.
A ready-to-wear luxury apparel brand makes a case for finding the right partner
A high-end fashion brand offering timeless clothing for both men and women decided to build its own PLM system on their existing ERP solution. What was designed as a side project ended up demanding significant after-hours resources from multiple teams, falling short of expectations and necessitating tedious, expensive programming services from a contracting IT company.
It took several months for the fashion brand to accept that they needed to go with an outside system instead. The cost had to be justified and getting the business to see the advantages of using an external PLM was somewhat of a battle, but in the end, the company decided to choose a partner solution.
Today—and with the right vendor partner—the clothing brand can handle the complexity of being a global enterprise after a seamless implementation, resulting in standardized workflows and strong team communication.
How to save time and effort from day 1
As a leading software provider in the Consumer Goods industry, Centric Software has replaced 270+ legacy systems including homegrown solutions. Centric’s innovative and AI-enabled product concept-to-replenishment platform for retailers, brands and manufacturers of all sizes provides real tangible ROI such as:
Increased gross margins by up to 15%
Increased revenue by up to 18%
Reduced time to market by up to 60%
Reduced inventory by up to 30%
And more
