When it comes to business management solutions like ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) software, picking between out-of-the-box or custom isn’t always simple. Out-of-the-box software can probably handle your standard business processes. But you may also have unique processes that could benefit from a custom solution. Instead of picking either/or, it’s better to find the most cost-effective combination for your business—one that has the exact features and functions you need at a price that fits your budget.

Out of the Box Software

Out-of-the-box software is prepackaged software that handles standard processes for a specific type of company. It can also handle business processes for an entire industry.

Out-of-the-Box Software Benefits

When you need a solution to manage standard business processes, out-of-the-box software can be a good fit. Its benefits can be seen across a variety of industries and business types:

• Budget-friendly. Out-of-the-box solutions typically have a lower initial price point than custom solutions.
• Widely available. Businesses in common industries, like food service or retail, usually have no problem finding an out-of-the-box solution that has successfully helped similar companies.
• Proven quality and support. This software comes with the backing of a large customer base and the software company’s quality assurance and support teams.
• Faster deployment. Out-of-the-box software is essentially ready to go, aside from installation and configuration. 
• No technical experience required. As long as you have the capacity to make small adjustments, you won’t need an advanced IT team to build out the software.

Out-of-the-Box Software Drawbacks

Out-of-the-box software offers a proven, cost-effective way to help businesses manage standard operations and automate their workflows, but there are some downsides:

• Functionality gaps. If your business uses unique processes, out-of-the-box software may lack some important workflow features, and it may include a slew of features you will never use. 
• Hidden fees. While out-of-the-box software may seem like a steal, it typically includes an annual licensing fee and additional upgrade and support fees. 

When You Need a Little Bit More—Custom Software

When out-of-the-box software falls short, a custom solution may be just what you’re looking for. Custom solutions are original pieces of software developed to meet distinct needs. Custom software encompasses a range of options, including:

• Customizations to out-of-the-box software to streamline manual processes
• Integrations between out-of-the-box solutions
• Custom interfaces, applications, or modules to add on to out-of-the-box solutions
• Unique, all-encompassing pieces of software

Custom Software Benefits

Despite the diversity of custom offerings, this software provides similar benefits to any business:

• Cost-effective for the long term. While you might pay more up-front for a custom solution, you could save money in the long-run by avoiding the ongoing licensing fees for out-of-the-box software. 
• Scalability. Since it’s built for your business, custom software is a long-term solution that won’t have to be replaced in a few years, something you may have to consider with an out-of-the-box option.
• Evolution your way. When you need enhancements, you can work directly with the developer to get what you want sooner rather than later.
• Enhanced productivity. Because it has been specifically designed for your organization and processes, custom software can dramatically improve workflows, increase accuracy, and enable your team to interact more efficiently with vendors and contractors.
• Training that fits. Custom software training programs are built for you and your business. This means less time spent learning irrelevant features and more time focused on the modules that matter. 
• An edge over the competition. When software enables you to enhance the customer experience and deliver more value than your competition, it puts you in a better position to gain market share and boost sales.

Custom Software Drawbacks

Perhaps you’ve heard that custom software is expensive, not to mention temperamental and easily broken. The reality is, while custom solutions can go wrong, it’s usually for one of two easily diagnosable reasons:

• Custom or modified code misalignment. Updates or changes to packaged software will often override customizations, which means those customizations will need to be verified and updated with each upgrade. 
• Overbuilding. It can be tempting to create a custom component for every feature, but overbuilding leads to unnecessarily complex systems that are difficult to use and expensive to maintain.

Have Your Cake and Eat It Too

Many businesses take advantage of out-of-the-box and custom CRM and ERP solutions to maximize benefits while minimizing drawbacks. By merging out-of-the-box and custom software, you can build an adaptable, cost-effective solution that meets all of your needs and evolves with you as your business grows. Here are some situations in which custom and out-of-the-box solutions can work together to benefit your business.

Adaptations

You’ve found a great out-of-the-box solution that covers most of your needs, but it doesn’t have a certain field or screen or report option. A custom add-on for the software can fill in the blanks!

Integrations

You have a great HR/payroll solution and a great accounting solution, but your productivity would improve tenfold if those two solutions would talk to one another. Today’s software providers typically offer APIs for their applications to third-party developers, and those developers write custom integrations between programs. This means you can link virtually any software program to another.

Add-ons

Maybe you love your current expense management solution, but you’d love it even more if employees could photograph and upload receipts from their phones. A custom tool could be written specifically for this purpose and integrated to the expense management software using standard APIs.

It’s important to note that no out-of-the-box solution will check all of the boxes for your company’s needs. If you have a highly specialized business or utilize very distinct processes, you may require a completely custom solution. Custom solutions offer niche businesses an opportunity to overcome even the most overwhelming obstacles.