ERP vs Best-of-Breed: What You Need to Consider

By Team bluQube

Choosing the right software architecture is one of the most strategic decisions a modern finance or operations leader will face.

 

The decision between adopting a fully integrated ERP system or taking a modular best-of-breed software approach can have long-term consequences for agility, scalability, and cost-efficiency.

This article explores the key differences, advantages, and use cases for both approaches, but leans into a growing truth: for many mid-sized and enterprise organisations, a best-of-breed strategy offers more control, faster innovation, and better results than traditional ERP platforms.

 

What Is Best-of-Breed Software?

Best-of-breed refers to individual applications that are built specifically to excel in one area of business — for example, finance, procurement, HR, customer relationship management (CRM), or business intelligence. Instead of relying on a single vendor to provide a bundled suite of tools, best-of-breed architecture empowers organisations to select the leading software in each category and connect them through integrations.

This approach has become increasingly viable and attractive thanks to the rise of cloud computing, open APIs, and low-code/no-code integration platforms.

Organisations no longer have to choose between specialisation and integration — now they can have both.

 

Why Best-of-Breed Is Gaining Momentum

More organisations are moving toward best-of-breed ecosystems for several compelling reasons:

  • Specialist functionality: Best-of-breed tools are purpose-built, often by companies with deep expertise in one area. For example, a best-of-breed finance platform will typically offer more powerful reporting, forecasting, or automation features than the finance module of an ERP.
  • Faster implementation: Because these tools focus on a single domain, they are easier to configure and roll out. This allows businesses to drive value and ROI much faster than with monolithic ERP deployments, which can take a year or more.
  • Better user experience: Narrower scope allows best-of-breed software to offer more intuitive, modern interfaces, which often means quicker onboarding, less training, and higher user satisfaction.
  • Ongoing innovation: With fewer competing priorities, best-of-breed vendors tend to iterate quickly, responding to customer needs and releasing new features more often than large ERP providers.
  • Choice and flexibility: Businesses aren’t locked into a single ecosystem. They can upgrade, replace, or expand one component without needing to change the entire system.

 

Potential Drawbacks – and How to Mitigate Them

While best-of-breed architecture is powerful, it’s not without challenges. However, modern infrastructure and support models have made these issues far more manageable:

  • Integration complexity: It’s true that combining multiple tools can introduce technical complexity. However, most best-of-breed systems today are API-first or come with ready-made connectors to integrate with finance, HR, CRM, and other systems. Middleware platforms like Zapier, Make, and Microsoft Power Automate have made integration easier than ever.
  • Vendor management: Managing multiple suppliers can seem daunting, but with clear SLAs, governance policies, and support from integration partners, this can actually lead to greater flexibility and responsiveness.

In short, the barriers that once held best-of-breed back are now largely resolved, especially for organisations that value agility and modern architecture.

 

What Is ERP Software?

Enterprise Resource Planning (ERP) software is designed to consolidate key business functions into one platform. An ERP system might include finance, HR, procurement, inventory management, CRM, project planning, and more — all under a single umbrella, provided by a single vendor.

ERPs were historically built for large enterprises that needed standardisation across departments and locations. Today, providers like Oracle, SAP, NetSuite, and Microsoft Dynamics offer ERPs to organisations of all sizes, promising simplicity, consistency, and control.

 

ERP Benefits – But with Trade-offs

ERP systems offer several well-known advantages:

  • Centralised data: All departments work from a single source of truth, which simplifies reporting and compliance.
  • Unified interface: Users benefit from a consistent experience across different modules, which can reduce training time and errors.
  • Single vendor relationship: With one point of contact, businesses may feel that support and renewals are simpler to manage.

However, these benefits often come at the cost of flexibility, speed, and innovation, particularly in fast-moving industries or growing mid-sized firms.

 

Common Challenges with ERP Systems

  • Lengthy implementations: ERP rollouts can take many months or even years, often requiring extensive consultancy and process reengineering. Delays and budget overruns are common.
  • Limited specialisation: ERP modules are often designed to be broad and generic to serve a wide customer base. This means they may lack the depth required for niche business needs — for example, complex charity fund accounting or advanced procurement workflows.
  • Inflexibility: Once embedded, ERP systems can be hard to change. Modifying processes or upgrading specific modules can require costly custom development.
  • Vendor lock-in: With a single supplier providing your entire business platform, you may be restricted in terms of pricing, updates, and roadmaps, reducing your ability to respond to change.

 

Best-of-Breed Use Cases

Many successful organisations now use best-of-breed systems to support core business areas. Common examples include:

  • Finance software: Systems like bluQube are designed specifically to handle complex finance operations, compliance, and reporting, going far beyond what standard ERP finance modules offer.
  • CRM: Salesforce, HubSpot, and similar platforms outperform ERP CRM tools in functionality, customisation, and integrations.
  • Recruitment and HR: Tools like Greenhouse or Workday deliver richer candidate experience and people analytics.
  • Analytics and BI: Platforms like Power BI or Tableau provide sophisticated data visualisation that surpasses ERP-native tools.

 

How to Choose Between Best-of-Breed and ERP

When deciding between ERP and best-of-breed, consider the following strategic criteria:

  1. Business Priorities

What are your organisation’s goals over the next 3–5 years? If speed, innovation, and flexibility are central, best-of-breed systems allow you to pivot and scale more effectively.

  1. Degree of Fit

Does the software reflect how your teams actually work? Best-of-breed software is often better aligned to your current processes, reducing the need for reengineering. ERP systems may require you to conform to their workflows, leading to workarounds or inefficiencies.

  1. Implementation Timeline and Change Management

Rolling out best-of-breed systems typically involves less risk, less downtime, and quicker user adoption. ERP projects, by contrast, require intensive planning, training, and often disrupt day-to-day operations during go-live.

  1. Maintenance, Upgrades, and Vendor Lock-In

Cloud-native best-of-breed tools are updated frequently, often without manual intervention. With ERP, updates may be slower, more disruptive, and entirely dictated by the vendor. You're also more likely to be locked into long-term contracts.

  1. Technical Ecosystem

Do you have (or want) a modern, API-driven tech environment? Best-of-breed strategies align with today’s modular, cloud-first IT architecture, giving you better integration options and future-proofing.

  1. Vendor Leverage

If you're using multiple best-of-breed suppliers, you retain negotiating power and the ability to switch providers if performance dips. With a full ERP, it’s all or nothing, making it harder to walk away from poor service or misaligned pricing.

  1. Competitive Advantage

Best-of-breed tools let you tailor your stack to your sector, business model, and workflows, giving you the ability to stand out rather than settle for “off the shelf” ERP functionality.

  1. Future Growth and Change

Your business will change. Best-of-breed systems are modular by design, making it easier to scale, upgrade, or replace parts of your tech stack without costly disruption.

  1. Total Cost of Ownership

While ERPs may seem cheaper up front, the full cost of implementation, consultancy, customisation, and upgrades can be significant. Best-of-breed often offers better ROI through faster time-to-value, lower risk, and the ability to optimise spending over time.

 

Is a Unified ERP Still Relevant?

ERP systems still play a role, particularly in organisations with simpler needs, lower complexity, or limited IT resources. In some cases, a centralised suite does reduce the number of vendors and offers a “good enough” solution.

However, for finance and operations leaders seeking modern functionality, agility, and future-readiness, the flexibility of best-of-breed is hard to ignore.

 

Conclusion

The ERP vs best-of-breed decision is no longer about size — it’s about strategy.

While ERP systems promise simplification, they often deliver compromise. Best-of-breed platforms allow organisations to build a tailored ecosystem that evolves with their business.

In a world where agility, innovation, and user experience drive success, best-of-breed software represents a smarter, more sustainable way forward — especially in complex environments like finance, HR, and operations.

 

Need Support in Navigating the Best-of-Breed Path?

At bluQube, we specialise in helping organisations build future-proof finance systems that integrate seamlessly with the tools they already love. Whether you're replacing legacy ERP or enhancing part of your stack, we can help you take the next step confidently. Get in touch today to book a demo.

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