Best of Breed Vs.
Integrated Systems
Reprinted from
"IT Selection Strategies"
Selecting enterprise
computer systems is a bit like planning
a vacation. Should you go for the "packaged
tour" with an integrated system from one vendor, or plan your own itinerary, the
so-called "best of breed" approach.
If you're looking for the optimal solution in
each area, the best of breed option usually provides richer functionality, satisfying more
users. But dollar savings, 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.
The downside is that some applications may have anemic functionality, causing users in
these areas to become disgruntled.
Best of breed systems, designed specifically to excel in just one or
a few applications, can also pose challenges, such as increased training and support,
complex interfaces with other 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
ongoing debate. However, here are some key factors to consider:
Cost
While money drives many decisions, higher costs must be weighed
against increased revenue. Integrated systems, which may have lower licensing costs and do
not require costly interfaces, are usually less expensive. And with easier access to
shared data, the potential exists for both containing costs and earning additional revenue
through better decision making.
However, with a best of breed system, specialized features can
create 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 ongoing costs.
Leverage
Once you are an installed customer of an integrated systems company,
your power in the relationship may be significantly diminished. When adding new modules,
you'll have less clout in negotiating price and terms. And if you decide to "walk
away," the prospect of replacing an entire enterprise system is daunting vs.
replacing one or two stand alone 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
The old saw about the hardware vendor blaming the software vendor
and vice versa is magnified in a best of breed environment. If a system goes down, more
finger pointing occurs when multiple vendors are involved. And when other trouble occurs,
such as the Y2K bug, it is easier to deal with one vendor than many different companies.
Data Sharing
Like Pacmen gobbling up fruit, many so-called integrated systems are
the result of larger companies acquiring specialized best of breed systems. If your
proposed vendor has different hardware platforms, databases, or operating systems for each
module, there's a good chance the systems were pieced together through acquisitions and
may not be that easy to interface.
With a truly integrated system developed by one company, it is
easier and faster to access shared data. However, use of a common database management
system or data exchange standards (e.g. HL7 in health care) will allow the sharing of data
in a best of breed environment. Some vendors will even certify that their system can
interface with other identified 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 organization 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.
Conclusion
In choosing between an integrated system or best of breed approach,
a lot may depend on your organization's size, culture and management style. If
sub-entities within your organization are large or complex, they may require the advanced
functionality that only a best of breed system can provide.
In a highly centralized decision making organization, easier access
to shared data will likely take priority. Specialized systems that do not provide mission
critical functionality will be sacrificed for the "greater good" of shared data
and other integrated system efficiencies.
Trends show that many organizations are beginning to adopt an
integrated systems strategy and are filling in the gaps with best of breed systems. Many
integrated vendors now offer a "one-stop shopping" experience by either
acquiring or partnering with best of breed vendors. In such cases, data sharing problems
may still occur, but the vendor is committed to making the integration appear seamless.
Copyright 2003 On-Line Consultant Software
|