When best-of-breed solutions have a better alternative

For many financial enterprises, best-of-breed systems have kept its momentum to offer specific best-of-sorts solutions in specialised areas. Is there a place for all-in-one solution systems within medium to large organisations? In this overview between best-of-breed vs all-in-one we state our case: what circumstances plays a major role in this decision.

We see more and more articles that builds the case to support all-in-one systems, but what does it come down to? All-in-one solutions are often perceived as the ‘under dog’ of system solutions compared to the ‘Rolls Royce’ best-of-breed solutions in financial companies. Let’s look at the pros and cons before we draw a conclusion.

All-in-one vs best of breed solutions

All-in-one solutions - the UP SIDE:

1. A smaller spectrum of features, but packaged into one single data source

2. One vendor, accompanied by simplified support

3. Ease of change allows for shorter implementation times, and is more cost effective

All-in-one solutions - the DOWN SIDE:

1. All the features of one system takes longer to become familiar with

2. Additional development needs may occur to suit all the business requirements

3. Vendor lock-in feeling

Best-of-breed offering - the UP SIDE:

1. The sub-systems have specific niches they address for optimum functionality.

2. Specialised users can become proficient with parts of the system

3. It is possible to swap subsystems with equivalent functions from different vendors

Best-of-breed offering - the DOWN SIDE:

1. Very high cost to develop, service and maintain each solution (sub-system)

2. Complex integration, with duplicate data

3. Diverse end-user experience between different solutions

Conclusion: When less is more…

Circumstance is key when deciding between these two system solutions. Large volume departments within financial enterprises need expert solutions, with optimum functionality and specialised outcomes. The reality is that medium to large organisations should consider an all-in-one solution when a new business unit is started with initial, lower projected revenues. The combination of individual systems solutions are far less attractive as the cost of human capital and software development could easily drown the potential revenue growth.

The appeal of the simplified, all-in-one solution, is the opportunity for a new product to get off the ground quicker, with faster development timelines and lighter human resources, to allow the business to breath and grow more easily.

All-in-one systems are adopted by larger organisations who see the efficiency, simplicity and more streamlined offering as an equally good fit for their specific business needs. Organic growth and development are favourable elements for new business divisions. Perhaps over time, the all-in-one ‘under-dog’ solution won’t be seen as less equal as it can boost profitability and growth potential of new and existing divisions for both medium and larger financial organisations.

ENDS

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