EPM Software Pre-Built vs. Custom Solutions: What Is the Right Choice for Your Business?

EPM Software Pre-Built vs. Custom Solutions: What Is the Right Choice for Your Business?

By Veselina Stoyanova

EPM Software Pre-Built vs. Custom Solutions: What Is the Right Choice for Your Business?

By Aleksandar Mihaylov

July 4, 2024

EPM Software is essential for strategic planning and performance optimization. This article compares pre-built and custom EPM solutions, highlighting their pros and cons. Pre-built options offer cost-efficiency, quick deployment, and vendor support but may lack customization. Custom solutions, however, provide tailored features, scalability, and a competitive edge, though they involve higher costs and longer development. Key factors like budget, time sensitivity, and specific needs are discussed, along with vendor considerations. Practical examples from Anaplan illustrate these choices, guiding organizations toward the best fit for their strategic goals.

Enterprise Performance Management (EPM software) is the foundation for organizations seeking to stay competitive, especially in today’s progressive business landscape.

As businesses goes into direction of careful strategic planning, the decision between pre-built and custom EPM solutions takes center stage.

  • Cost Efficiency – Pre-built solutions can reduce initial costs by up to 30% compared to custom solutions.
  • Deployment Speed – Pre-built EPM solutions can be implemented 50% faster than custom alternatives.
  • Customization Needs – 60% of organizations find custom solutions crucial for meeting their unique business requirements.

In this article, we’ll go over the differences between pre-built and custom EPM software solutions, covering the insights and significance of both, as well as practical examples and vendor considerations.

What is EPM and Why It’s Important

Enterprise Performance Management software encompasses a set of processes and systems designed to enhance strategic planning, financial management, and overall performance optimization.

As organizations go through the twists of modern business, selecting the right EPM software becomes a crucial decision that can profoundly impact their operational efficiency and strategic outcomes.

You May Also Like: What is EPM (Enterprise Performance Management)?

Pre-Built vs. Custom EPM Solutions: A Comparison

Choosing between pre-built and custom EPM cloud solutions is essential. Each option comes with its own set of advantages and disadvantages, and the decision should align with the organization’s unique needs and objectives.

Initial Cost

Pre-built solutions are cost-effective due to lower upfront costs and ready-to-use features, making them ideal for quick implementation. Custom solutions, however, involve higher initial investments due to the extensive customization and development required to meet specific business needs.

Deployment Time

Pre-built solutions offer rapid deployment with predefined functionalities, perfect for businesses needing a quick setup. Custom solutions take longer to deploy as they require detailed development and testing to tailor them to the organization’s exact requirements.

Customization Flexibility

Limited customization comes with pre-built EPM software solutions, suitable for standard business operations. Custom solutions offer extensive customization, allowing businesses to create a tailored EPM system that meets their unique and complex needs.

Scalability

Pre-built solutions may face scalability limitations, restricting their ability to grow with the business. Custom solutions are designed to scale effectively, adapting to the evolving needs of the organization and supporting long-term growth.

User Experience

Pre-built solutions offer a standardized user experience that may not cater to specific preferences. Custom solutions deliver a tailored user experience, ensuring the system aligns perfectly with user needs and enhances overall usability.

Maintenance & Support

EPM software pre-built solutions depend on the vendor for maintenance and updates, providing reliable support but limited control. Custom solutions may face potential challenges in maintenance, requiring internal or third-party resources to manage updates and support.

Competitive Advantage

Pre-built solutions offer standardized features that meet common industry needs. Custom solutions provide unique features and functionalities, giving businesses a competitive edge by addressing specific operational requirements and differentiating them from competitors.

Cost Transparency & Total Cost

Clear upfront costs come with pre-built solutions, making budgeting straightforward. Custom solutions, while potentially more costly initially, provide a higher return on investment over time due to their tailored features, which align closely with the specific needs of the business.

Risk of Scope Creep

Pre-built solutions have a lower risk of scope creep because their features are predefined and standardized, reducing unexpected changes during implementation. Custom solutions, while highly adaptable, have a higher potential for scope creep due to the extensive customization process, which can lead to additional changes and extended timelines.

What to Consider When Choosing an EPM Software

Organizations need to carefully consider various factors when making this significant decision.

Budget Constraints

Evaluate budget constraints and determine whether the immediate cost savings of pre-built solutions align with long-term strategic goals. Occasionally, custom solutions are more budget-friendly than pre-built options, thanks to the geographical advantage held by their provider.

Time Sensitivity

Consider the urgency of EPM software implementation. If quick deployment is crucial, pre-built solutions may be more suitable. An alternative strategy involves organizations to take a phased approach to EPM software custom development, employing Minimum Viable Product (MVP) planning. This method focuses on essential features for rapid deployment, ensuring a faster time-to-market while effectively addressing immediate performance management needs.

Specific Requirements

Assess the unique needs of the organization. If requirements are highly specialized, a custom EPM cloud solution may be the optimal choice.  Additionally, some pre-built applications provide excellent customization options, allowing organizations to fine-tune solutions according to their specific needs and preferences.

Anaplan EPM Pre-Built and Custom Solutions

Anaplan, a leading EPM software, stands out for its versatility, offering both pre-built and custom options. Recognized for its cloud-based platform, Anaplan allows organizations to choose between ready-to-use models for rapid deployment or fully customize their EPM system for a tailored approach.

Anaplan Pre-Built EPM Software

With Anaplan pre-built solutions, organizations can cover various business needs that can result in the overall improvement.

Anaplan Custom EPM Software

For organizations with unique requirements, Anaplan offers a flexible platform that allows for extensive customization. This approach ensures that the EPM system aligns precisely with specific business processes, providing the scalability and adaptability needed for evolving business landscapes.

EPM Software – Pros and Cons

Choosing between pre-built and custom EPM software involves evaluating their benefits and drawbacks. Considering factors like cost, implementation speed, vendor support, flexibility and the option to meet specific business needs is required for making this informed decision.  

Advantages of Pre-Built EPM

Pre-built EPM solutions offer quick implementation with ready-to-use features. They are cost-efficient, making them ideal for companies with a set budget. Quick deployment allows for effortless integration, and continuous vendor support ensures regular updates. Pre-built EPM solutions incorporate industry best practices, providing a reliable framework. 

Disadvantages of Pre-Built EPM

Pre-built EPM solutions may lack flexibility for specific business needs and depend on vendor updates and additional costs can arise over time, impacting the overall cost. Standardization may lead to lack of efficiency, also the scalability challenges can delay long-term growth. 

Advantages of Custom EPM

Custom EPM solutions are tailored to your business unique needs, offering scalability and flexibility. Custom EPM solutions provide a competitive edge with unique features and full control over development, improving user experience and productivity. 

Disadvantages of Custom EPM

Custom solutions have higher initial costs and require more time for development. Ongoing maintenance can be challenging, but dynamic planning helps. Customizing can make the system less stable, and projects might expand beyond their original plan, so careful management and clear communication are essential. 

EPM Software Vendor Considerations

Organizations can benefit from understanding the strengths and weaknesses of pre-built solutions offered by different vendors. When opting for custom solutions, organizations should carefully evaluate vendor capabilities and support.

Key considerations when choosing an EPM software vendor: integration compatibility, scalability and future-readiness, user training and adoption support, data security and compliance, and cost transparency and total cost of ownership.

Integration Compatibility

Assessing how well a vendor’s EPM software integrate with existing systems, including data sources and APIs, ensures seamless integration across the organization.

Scalability and Future-Readiness

Evaluating the scalability of enterprise performance management solutions and the vendor’s commitment to updates ensures a sustainable investment adaptable to future needs.

User Training and Adoption Support

Vendors should provide adequate user training and adoption support to maximize system potential and ensure a smooth implementation phase.

Data Security and Compliance

Scrutinizing the vendor’s commitment to data security and compliance with industry regulations is essential for safeguarding sensitive information.

Cost Transparency and Total Cost of Ownership (TCO)

Clear communication on pricing, licensing, and total cost of ownership (TCO), including ongoing maintenance and scalability costs, ensures financial alignment with organizational considerations.

Keep Exploring: 5 Strategic Advantages of Anaplan for Superior Enterprise Performance Management (EPM)

Pre-Built vs Custom EPM Software FAQs

Turn Complex Data Into Strategic Business Insights with EPM Software and B EYE

In the constantly changing environment of strategic planning and performance management, the decision between pre-built and custom EPM solutions holds significant implications.

Careful consideration of the advantages and disadvantages associated with each option, along with insights into specific vendors, is crucial to finding the best fit for your organization’s present and future needs.

B EYE is specialized in providing top-notch services regarding implementation of EPM software into your organization.

Get started with B EYE and EPM software for improving your strategic planning.

Get ahead with implementing EPM software to your organization! Call us today at +1 888 564 1235 (+359 2 493 0393 for Europe) or fill in our form below to receive a free consultation and a custom proposal.

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