Selecting an ERP – Is Custom Always Better?
Embarking on the journey of designing a custom ERP system is a step into a world of possibilities and complexities. A bespoke system promises tailored solutions that perfectly fit your needs, but it also comes with a hefty price tag and a myriad of challenges. With the advent of systems, like AvSight, that offer off the shelf functionality and the ability to customize the system to your specs, the benefits of building a system from scratch are not as clear cut as you might imagine.
Our team has seen and experienced the triumphs and tribulations of custom software development projects. So, before you take the plunge, let us take you on an informative adventure through the challenges and expenses that await. But first, we’ll share some critical steps that will help you navigate the treacherous skies of choosing the right ERP system.
Understand Your “Why”
Beginning a software project without understanding your goals is a lot like heading on a journey without a destination. Save yourself the headaches and expenses of directionless work by acquiring a thorough understanding of your business needs. A good way to do this is by doing a simple gap analysis.
Start off by documenting the departments or major functional areas within your organization and identify individuals with a deep understanding of their department’s workflows and processes. Often these are managers, but they may also simply be tenured individuals who really know their stuff. These individuals will be your subject matter experts (SMEs).
Work with each SME in your organization to document their business processes, KPIs, and long-term goals in detail. Your goal should be to identify the current state of each department and understand what the ideal state of that department would look like.
Questions to Consider
- How is each key process currently being executed?
- What areas do they feel have room for improvement?
- What are the root causes of these weak areas?
- Do the processes simply include unnecessary steps?
- Is the department missing resources?
Adding technology can have a huge impact on your workflows and efficiency, but it alone won’t fix fundamental business process and strategy problems. Knowing the answers to these questions will allow you to really understand what you want your technology to accomplish and what changes need to be addressed independently. This knowledge will be critical to any tech project – whether you’re starting from scratch or using an existing solution.
Document the “How”
Once you understand your end goals, work with your team to create a checklist of what exactly you need your software to do. Don’t just think about the end goal – think about the “how?” and “why?” of each process. Be as specific as possible – this will be a critical tool as you continue your tech project.
We Know What We're Talking About - Trust Us
You may be wondering how, as a provider of tech solutions, AvSight can provide unbiased guidance on software selection. The truth is, we do think that our platform is the best system available and is a great choice for most companies.
But we won’t attempt to claim that a custom system is always the wrong option. Regardless of your decision, a clear understanding of your project and the challenges ahead will improve your chances of success.
The goal of this article is to share our insights and experiences to help you make an informed decision.
Our team encompasses a huge amount of aviation experience.
We’ve worked in parts sales and at MRO facilities and been software users. We’ve also worked for legacy software companies as technology providers. So we have a clear understanding of company needs and the available options.
We know what it’s like to be frustrated with available options.
Prior to starting AvSight, our founders went through the process of conceptualizing, designing, and executing custom software systems for major aftermarket companies that they worked for. We have a true understanding of the expense and work that goes into a software development project.
We’re a software company.
We know what is involved in feature development and keeping pace with technology. We’ve also seen the carnage of DIY systems gone wrong that we’ve been called in to replace.
Assess Your Options
With your checklist completed, you’re ready to begin assessing existing solutions. Why go to the trouble if you’re planning on creating a custom solution? You’ll gain a deeper understanding of how current options address business needs that are similar to yours and what you would like your system to do differently. This will give you a clear picture of the actual vs perceived benefits you’ll experience with a custom solution. You may even discover that customizing an existing solution would work just as well for your business. Either way, it will help you define how you want your solution to work.
Weigh the Challenges and Benefits
Cost
It’s no secret that tech talent is in high demand. It’s also often accompanied by a sizable price tag. When you pay for existing services, you’re essentially sharing this cost with all of the company’s other users. But when you go custom – you’re footing the whole bill. Likely you’re interested in designing a system because it seems like this will get you a better product than what is widely available – so obviously, you wouldn’t want to save cash by picking a bottom tier tech team. This means you’ll be competing against tech companies for hiring the bright minds needed.
To successfully develop a custom software system, you’re going to need, at minimum, developers, project managers, and analysts. With a typical project – first year costs for labor alone could easily exceed $500k. In addition, you are unlikely to find top tier talent that has a broad understanding of the aviation industry and your business’s processes. To ensure your needs are met, you’ll need to create a team of your key employees that will take an active role in providing requirements and testing functionality. Getting this done in a short time while setting up an ERP system can be quite a challenge. But just think about what it could mean to do this over several years while creating your own custom system.
Questions to Consider
- Are you ready to invest in top tier tech talent? If not, will your budget really allow you to create a solution that’s better than currently available options?
- Does your internal team have the skills and bandwidth to provide technical requirements to a dev team?
- Are you ready for the time investment of prolonged functionality testing and managing the systems migration process?
- How much will the total cost of the custom system be, including labor, hardware, and software costs?
- Have you included the cost of the maintenance team required to provide support and tweaks needed as you operate on your custom system?
Expertise
Embracing your strengths is the surest way to run a profitable business. If you’re in aviation, the chances are good that those strengths lie in, well, aviation. By putting resources into developing a software system, you are essentially starting a tech company on the side, and distracting yourself and key employees from more profitable areas of the business.
Take a look at any highly successful company and you’ll see a company that capitalizes on their strengths. Think, for example, of the engine on a 737 – the chances are good that it was designed and manufactured, not by Boeing, but by CFM. With their immense resources, why doesn’t Boeing just make their own engines? They don’t have to – excellent options are available. And by choosing outside options, they’re able to be more successful in their core business.
Questions to Consider
- What strengths does your company currently have, and can you leverage them to create a better custom system than what is available on the market?
- Who on your team will be responsible for overseeing the custom system project, and what impact will this have on their other responsibilities?
- What impact will this have on the profitability of your core business?
- Will the ROI of a custom system really offset that loss?
Training
To get your new system up and running, you’ll need to spend some time training your team on it. This is true of any software transition, but with a custom system, there will be no outside resources to rely on, all documentation will need to be created by a member of your team who has a strong grasp on your business and on the software. You will also need to budget additional time to get new hires up and running. As, in contrast to systems widely used in the industry, they will not have any prior experience with your bespoke system.
Questions to Consider
- Who will be responsible for training current employees and new hires?
- What resources will be needed for effective training? A knowledge base? Self guided training courses? Training videos?
- Who will be responsible for documentation and resource creation?
- Are you ready to budget additional time for training new hires? What impact will this have on onboarding costs?
Obsolescence
Technology is constantly evolving. As operating systems, hardware, and software advance, compatibility and security issues will impact your system’s safety and efficiency. If you’re working with a forward thinking provider, the chances are good that they’ll be regularly updating their solution to keep pace with technological advances and ever-changing industry requirements. At AvSight, for example, we have full time development, product, and support teams who are working non-stop on the next two to three future versions of our platform. Software development and management is not a one-time process.
If you have a home-grown system, the responsibility to keep abreast of technology, the process of managing the development and rollout, and the daily support and deployment of upgrades of the system falls 100% to you.
Questions to Consider
- Are you ready to invest resources in ongoing system management, development, and support?
- How will you ensure that the system stays up to date with the latest technological advances?
- What is your plan for handling compatibility and security issues that may arise with the system?
Inheritability
We often find ourselves being brought in to companies to replace custom systems in a hurry. The number one reason is that the individual who championed the project is no longer with the company. Often this means that no one knows how to do basic configuration, upgrades, or fix bugs in the system. Additionally, bringing in an outsider to consult on these issues is incredibly complicated. Because the system is unique, no one outside of your company will have any experience with it, requiring resources to be invested in training your consultant before they can even get started on your project. The process of doing anything with it will be, at best, a long and arduous process and, at worst, impossible.
Questions to Consider
- You may have a systems admin you like and trust now, but what happens if they leave, retire, or are abducted by aliens? Do you have a succession plan in place?
- What is your plan for handling configuration, upgrades, and bug fixes if the individual who championed the project is no longer with the company?
In Conclusion
Designing or selecting an ERP system for your company requires careful consideration and evaluation. While the allure of a tailor-made solution may be appealing, it’s essential to weigh the costs, expertise, training, obsolescence, and inheritability involved. By understanding your specific needs, documenting your processes, and conducting a thorough analysis, you can determine if a custom system is truly the best choice for your organization. Remember, it’s not just about having a system that meets your requirements—it’s about ensuring long-term success, efficiency, and profitability. With the right approach and a clear understanding of the challenges and benefits, you can make an informed decision that drives your business forward in the competitive aviation aftermarket industry.
If you feel like current options aren’t meeting your company’s unique needs, we invite you to talk to the team at AvSight about the possibilities of a highly configurable and customizable system that will allow you the best of both worlds: custom yet professionally supported.
Experience AvSight for Yourself
Request a demo to see how our next generation aviation platform can give your company a competitive edge.
Request A Demo
