Oldie but goodie: Best-of-breed software or

integrated suite
Executive Summary
Selecting an enterprise computer system is a bit like planning an exotic
vacation. Does the "packaged tour" with an integrated system from one
vendor offer the greater benefit, or is planning an itinerary on your own, the
so-called "best of breed" the preferred approach?
Looking for the optimal solution in each area, the best of breed option
usually provides richer functionality whereas convenience and efficient data
sharing can make the integrated approach very appealing.
Integrated systems provide multiple applications with a common database
and consistent user interface so that all modules have a familiar look and
feel. Best of breed systems, designed specifically to excel in just one or a
few applications, can pose challenges, such as increased training and
support, complex interfaces with legacy systems, duplicate data entry, and
redundant data storage.
So which way to go - best of breed or integrated system? Unlike "Who
Wants to be a Millionaire," there is no "final answer" to this debate.
Generally it is a very hard judgement to be made and a number of topics
can be considered to make the right front-end decision. The factors to be
carefully weighed include the time, cost and resources for the
implementation, degree of fit/value to business, simplicity of use, and ongoing maintenance/support fees.
Introduction

The purpose of this write up is to provide an overview of the most important

factors in the decision making process and how to look at the pros and
cons. There is no doubt that an enterprise wide application integration
offers greater end-to-end process visibility and simplifies data flow between
business functions, removing data silos and many manual procedures.
However such integration benefits can be overwhelmed by the rigid
processes inherent in ERP solutions, many of which have foundations in
other industries or they have been stitched together as a result of mergers
and acquisitions. As a result the complexity and sheer scale of mapping
every business requirement, re-engineering every process and the
subsequent levels of testing needed should not be underestimated.
Best of breed systems, designed specifically to address processes and
common problems in certain functional areas, generally provide the
maximum functionality to a set of business process. They pose challenges,
such as increased training and support, complex integrations with other
systems, possible duplicate data entry / redundant data, and increased total
cost of ownership.
As a guiding principle money is best spent on solutions that offer distinct
competitive advantages considering a companys unique environment.
Differentiating the desirable features from the must-haves is an important
step. Its best not to compromise when it comes to functionality that will
enhance the competitive advantage, and provides the flexibility to address
increased needs 3 to 5 years down the track. An integrated solution may
offer the competitive advantage of reduced implementation time, but needs
to ensure it is not limiting the ability to introduce the customisations that will
set an organisation apart.

When evaluating any solution, its important to first analyse current and
anticipated business requirements, and build a strategy based on these
needs. Its important to obtain the right balance between depth of
functionality, product flexibility, and integration costs. By carefully
considering our business environment and evaluating solutions against true
and realistic benefits, ultimately a solution will prevail that best meets the
key requirements.
As outlined there a number of elements to be considered to thoroughly
assess the differences between best of breed and integrated systems and
the next section looks in more detail at those decision making factors.
Decision Making Factors
Cost
Integrated systems do not require costly interfaces and with easier access
to shared data, the potential exists for containing costs. While money drives
many decisions, higher costs can be weighed against increased specialised
features, as offered by best of breed, creating a competitive advantage
which may also serve to cut costs or increase revenue.
A cost justification may be supplied by the vendor to show that the system's
advanced features compensate for higher up-front and on-going costs.
Leverage
Once being an installed customer of an integrated system, the power in the
relationship may be significantly diminished. When adding new modules,
there is less clout in negotiating price and terms. And if "walking away" from
a specific solution ever needs to be contemplated the prospect of replacing

an integrated system module is daunting vs. replacing one or two best of

breed systems.
Human Resources
In a best of breed environment, IT staff must be trained to use and support
multiple systems with potentially different hardware platforms, operating
systems, databases, and programming languages. The shortage of IT
people who can integrate and maintain disparate systems is a big
advantage to the integrated approach.
Support
When comparing various technology solutions, one thing that inevitably
comes up is the notion of a single vendor solution, with one support
organisation, versus a best-of-breed solution with multiple support
organisations. The so-called "One Throat to Choke" support model. If a
system goes down, more finger pointing occurs when multiple vendors are
involved. And when other trouble occurs, it is easier to deal with one vendor
than many different companies.
In a best-of-breed environment, however, the technical risks needs to be
considered in keeping users trained and maintained on separate systems.
Data Sharing
Data-sharing between departments in a best of breed environment is often
inefficient and/or not timely, staff depth to run the multiplicity of systems is
shallow so that the unplanned loss of one person could stop administrative
processes. Further department-specific solutions lead to proprietary control
of data and interference with cooperative sharing.

With a truly integrated system developed by one company, it is easier and

faster to access shared data. However, many sophisticated best-of-breed
products provide easy integration (and more data-sharing capabilities) with
other vertical software products, thanks to open database structures and
vendor collaboration initiatives. Some vendors will even certify that their
system can seamlessly interface with other major integrated systems.
Functionality
While the strongest case for the best of breed option is richer functionality,
integrated systems are starting to catch up with their "boutique system"
cousins.
Yet areas within an organisation that are very dynamic or competitive may
need regular enhancements, which best of breed vendors are more likely to
provide. Specialized systems may also be more web-enabled or
technologically advanced since it takes longer for companies to re-write a
whole suite of applications.
Usability
Rather than selecting a software product based only on features, functions
or integration capabilities, managers must consider how easy and efficient
the product will be to use. Unless end-users buy in to the product, the
solution has little chance for success.
From a users perspective, two different systems will mean two different
user interfaces. Its simpler and easier to get used to using one system, and
avoids having to log into two different systems. A single integrated system
makes day-to-day operations potentially quicker, and also reduces training
time. The same applies to systems administration. For simplicity, one fully-

integrated system clearly wins over two or more best-of-breed systems that
have been joined together.
Conclusion
When comparing best of breed and fully-integrated systems, there are a
number of factors that will swing the decision one way or the other
depending on specific circumstances, requirements, and priorities.
A fact-based analysis and the relevant metrics associated with such an
analysis should form the basis of such decisions. The assessment needs
to project the total business benefit under both scenarios and compare the
two approaches, considering differences in capital expenditures, project
plans, and investment time horizons.

Source:
http://i.zdnet.com/whitepapers/sap_BestofBreedvsBestofSuiteInsight.pdf?
tag=mantle_skin;content

In a few cases, the decision-making process is fairly straightforward in that

the circumstances dictate the obvious choice. For instance, IT projects
undertaken for strategic reasons, such as migrating the company to a
standard platform, reinventing IT to drive competitive advantage, or
changing the game are typically decided in favour of a best-of-suite
offering from a major enterprise software provider.
In choosing between an integrated system and best of breed approach, a
lot depends on the organisation's size, culture and management style.
In truth, there is no one-size-fits-all strategy.
Final Thoughts
As an alternative to best-of-breed the best-of-suite approach provides the
necessary degree of integration across multiple applications provided by a
single vendor. The best-of-suite approach can offer cost and business
benefits over a best-of-breed approach, which is a combination of
independent applications from different vendors supported by point-in-time
integrations. However above key decision making factors still need to be
considered even in a best-of-suite vs. integrated comparison.
Taking a best-of-breed approach would be like trying to create a perfect car
by putting the best features from various car manufacturers into a single,
mismatched vehicle running on different parts; for example, installing a
BMW braking system and a Ferrari engine inside of a Lamborghini. The
chances of finding a single mechanic able to service such a vehicle would
be pretty slim. Therefore, it is required to repair and maintain each
component individually, which would make servicing the car more complex
and increases maintenance costs without a guarantee that the driving
experience would be improved.

A best-of-suite approach offers the most effective and cost-saving strategy

versus best-of-breed offering tangible cost benefits especially in effort and
time spent just to maintain the operating status quo or 'keep the lights on'.
A best-of-suite approach delivers the following key business benefits:
support for common, end-to-end business processes; reduced
maintenance to free resources to focus on new business initiatives; shared
data repositories across applications to more effectively support both
customers and convergent services; and the ability to collect data at the
business level to improve operations and customer-supporting processes.
Resources
http://improveprocess.blogspot.com/2009/09/best-of-breed-vs-integratedsystems.html
http://blog.gentrack.com/erp-vs-best-of-breed-a-realistic-alternative
http://www.crm2day.com/content/t6_librarynews_1.php?id=50163
http://drjimmystki.blogspot.com/2008/06/best-of-breed-vs-integratedsystems.html
http://www.foundationsoft.com/resources/Articles/BestofBreedvsEnterprise
SystemsWhichWorksBestForConstruction.html