ERP Implementation Balance : Ready VS Customization

Patil Chandrakant  Nakshatra Solutions | SAP Solutions,Odoo

Here are the key risks of using tailor-made (local) ERPs compared to established ERP brands:

1. Vendor Dependency (Lock-In Risk)

You are completely dependent on the local developer for support, bug fixing, and future updates.

If the vendor shuts down, your ERP may stop evolving or become unusable.

2. Limited Scalability

Local ERPs often struggle when business operations grow across multiple locations, branches, or international markets.

Adding new modules (HR, CRM, e-commerce, BI, etc.) may not be seamless.

3. Technology Obsolescence

Many tailor-made ERPs are built on outdated platforms with poor integration capabilities (e.g., no cloud support, weak APIs).

Hard to integrate with modern tools like AI, analytics, or IoT.

4. High Hidden Costs

Initial development may be cheap, but every customization, upgrade, or bug fix comes with extra cost.

No economies of scale like branded ERPs.

5. Security & Compliance Issues

Data security standards are usually weak (no ISO/GDPR compliance, poor audit trail, weak encryption).

May fail to meet compliance for industries (GST, SOX, FDA, etc.).

6. Poor User Experience & Training

UI/UX may not be standardized.

Training materials, documentation, and user communities are often missing.

7. No Continuous R&D

Big ERPs (SAP, Oracle, Odoo, Microsoft) invest millions in R&D every year.

Local ERPs rarely upgrade proactively; improvements only happen on client demand.

8. Integration Limitations

Local ERPs may not integrate well with third-party applications (CRM, e-commerce, tally, payment gateways, etc.).

Can cause data silos.

9. Unreliable Support & Updates

Support depends on a small team or even one individual.

Risk of delayed response or complete lack of support.

10. Resale & Market Reputation

Big ERPs add brand value when scaling or selling a business (investors trust SAP, Oracle, Odoo, etc.).

A local ERP is often seen as a liability.

Summary

Tailor-made local ERPs can solve immediate needs at low cost, but carry long-term risks of scalability, vendor lock-in, compliance, and obsolescence. Established ERPs, though costlier, are safer investments for growth-oriented businesses.