Best-of-breed vs all-in-one. Which is right for you? | Digitizing your business #17

Choose technology tools to support your company

Many entrepreneurs start using subscription-based software as the company expands. They begin looking for cloud solutions or CRM systems. First, they need to digitize financial management and accounting processes. Then, digital training and efficient team management become essential. Ultimately, entrepreneurs seek to automate routine tasks to improve workflow.

Is there a single platform that can handle all these tasks? Maybe. It would certainly be a convenient solution. However, is it worthwhile to pay for all the features you don’t use and become dependent on one provider?

Perhaps it’s better to rely on specialized tools instead? While this approach requires more time and effort for selection and implementation, it offers the ability to create a customized system that perfectly matches the company’s needs.

Let’s take a closer look at the most popular providers, as well as the advantages and disadvantages of both solutions.

The most popular all-in-one software solutions

1. Microsoft Dynamics 365

Microsoft Dynamics 365 is a comprehensive business solution that integrates customer relationship management (CRM) and enterprise resource management (ERP) systems. As a result, businesses can use various modules tailored to their business needs, such as:

• sales,
• customer service,
• finance,
• data analytics.

This platform is highly popular mainly because of its ability to integrate with other Microsoft products, such as Office 365 and Microsoft Azure.

SAP S/4HANA

SAP S/4HANA is an advanced ERP system that combines essential functionalities to manage all aspects of a business. It offers modules that let you effectively manage finance, logistics, sales, production, and human resources. Importantly, SAP S/4HANA is highly scalable and suitable for companies of all sizes.

Oracle NetSuite

Oracle NetSuite is cloud-based business software that integrates key functions such as enterprise resource management (ERP), customer relationship management (CRM), supply chain management, and service automation. It is particularly popular with companies that are looking for flexible and scalable solutions. Oracle NetSuite also offers numerous add-on applications that can be integrated with the platform to suit specific needs.

Salesforce

Salesforce is a leader among CRM software vendors, but it also offers an all-in-one solution for businesses with its Salesforce Platform. This platform lets you manage sales, customer service, marketing, data analytics, and other aspects of your business, as well as integrate with many external applications. Salesforce is known for its innovation and flexibility, making it the most popular choice among entrepreneurs looking to grow their businesses in a rapidly changing environment.

The benefits of all-in-one solutions

All-in-one software solutions bring many benefits, such as:

1. Integration – all tools are interconnected, which enables seamless data exchange. For example, a CRM system can integrate with the accounting system.
2. Easier management – with a single platform, there are fewer systems to monitor and update. Having one software provider for all needs simplifies administration.
3. Data consistency – avoiding problems related to using different data formats ensures a unified way of storing customer information.
4. Cost savings – an all-in-one platform usually means lower expenses related to its implementation and maintenance than a best-of-breed solution due to, for example, discounts for customers using multiple products from the same provider.

The drawbacks of all-in-one solutions

However, an all-in-one solution may also have some limitations, such as:

1. Limited functionality – not every platform can cover all your needs, for example, a lack of an advanced tool for data analysis may mean that you will need an extra tool, and using it will require manual migration of data between systems.
2. Dependence on one provider – being too dependent on a single vendor can lead to increased costs, for example, by not being able to integrate the platform with competing offerings in the market. This happens, for example, when the platform only allows exports in a dedicated format that is proprietary and isn’t supported by other providers.
3. Lack of innovation – a single platform may not always stay up to date with the latest trends and technologies, and as it is difficult to switch vendors of all-in-one software, they don’t rush into introducing new features.
4. Difficulty switching vendors – if there are any problems with an all-in-one platform, moving to another can be costly and time-consuming, for example, moving data between systems.

The benefits of best-of-breed solutions

The best-of-breed approach lets you benefit from the best solutions in the field and industry. The main advantages of choosing a best-of-breed solution are:

1. Specialization – the ability to choose software dedicated to a specific industry, e.g. a production management system for manufacturing companies instead of a general business or team management system.
2. Innovation – access to the latest technologies and solutions, such as cloud-based tools for data analysis.
3. Flexibility – easy adaptation to changing business needs and requirements, e.g. adding new features and integrations as the company grows using APIs.
4. Competitiveness – as there are multiple vendors, you can negotiate favorable terms, such as lower prices or better technical support, and pay only for the features you use.

The drawbacks of best-of-breed solutions

However, the best-of-breed approach also entails some challenges, such as:

1. Integration – difficulties in communication between different systems, such as data exchange between a CRM and an accounting system.
2. Management complexity – managing a large number of systems requires more time and effort, including the potential need to hire additional staff specifically for software management.
3. Costs– higher procurement, implementation, and maintenance costs, for instance, variable licensing fees from multiple providers.
4. Variety of data formats – problems related to data incompatibility, e.g. the need for data conversion between different systems may arise.

Examples of best-of-breed solutions

Due to a variety of applications and integrations of best-of-breed solutions, we won’t be tempted here to create a list of the best software for digital businesses. We will present only a few pairs of platforms that have been tested by several entrepreneurs.

1. Slack and Trello

Slack is a popular tool for internal communication within an organization, while Trello is a project management platform based on Kanban boards. The combination of these two tools enables effective team collaboration and efficient communication on the progress of projects.

2. Asana and Zapier

Asana is a project management system that works perfectly with Zapier, a business process automation tool. Thanks to such a combination, users can create automated workflows between Asana and other applications, which increases productivity and saves time.

3. HubSpot and Mailchimp

HubSpot is a customer relationship management (CRM) platform, and Mailchimp is an email marketing tool. The combination of these two solutions allows you to effectively create and manage email campaigns, as well as track their effectiveness and impact on customer relationships.

Choice criteria

When choosing between an all-in-one platform and a best-of-breed solution, it’s worth considering such criteria as industry, business requirements, availability of resources, or situations where one solution is better than the other. Before making a decision, ask yourself the following questions:

1. Does my industry have specific requirements that can only be met by one of the solutions?
2. What features are crucial for my business, and are all of them available in one platform?
3. What is my budget for implementing and maintaining IT systems, and am I able to cover potential extra costs associated with integrating best-of-breed solutions?
4. Do I have the necessary internal resources and expertise to manage a complex best-of-breed ecosystem, or would I prefer to rely on a single provider that caters to most of my needs?
5. What are my plans for the future? Will company growth be easier with a single platform or a best-of-breed approach?
6. How important are the scalability and flexibility of IT systems to me?
7. What are my expectations regarding technical support and continuous software development?

Answering these questions will help you make a wise choice between one platform and a best-of-breed solution, tailored to your company’s needs and capabilities.

Summary

Both all-in-one platforms and best-of-breed solutions have their pros and cons, which should be taken into account when making a decision. It’s essential to find the right solution to meet all your company’s needs and capabilities. Whether you choose an all-in-one tool or opt for the best-of-breed software, it is key to have a thoughtful strategy and adapt to the changing market realities.

It’s worth considering practical choice criteria and asking yourself: does my company need the flexibility and innovation offered by the best-of-breed software, or would an all-in-one platform be a better fit, ensuring simplicity of management and data consistency? As you make your decision, it’s also important to take into account such technical aspects as system scalability, integration capabilities with other tools, and availability of technical support. Ultimately, choosing the right approach is crucial to planning your company’s growth in the digital world.

Read also: How to write a perfect marketing brief in 4 simple steps

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