5 reasons to choose a Best-of-Breed strategy

Before we formulate the five reasons to choose a best-of-breed strategy, let's first give a little definition of the term. A best-of-breed application is functionally one of the best applications available in a specific niche. A best-of-breed application runs in the combination of best-of-breed applications within an IT architecture.

A plea for a best-of-breed strategy is not a plea for bringing in an infinite number of applications, but rather a strategy or architecture that delivers exactly those functions that, in context, deliver the best performance. An ever-growing landscape is, of course, a risk. This is manageable through a clear architecture and a clear process for bringing new applications into the architecture.

1. Functionally the best fit-for-purpose

Implementing a new application always takes place in an existing landscape. Each landscape has its own functional richness. Choosing the right functions per application, per functional domain and per process is an essential step when choosing a new application. A best-of-breed application has a clear functional focus and the supplier of the application is also directly a specialist in this specific domain.

Example: In the .com world, predictive modeling is a crucial part of the operational model and the company has long invested in its predictive competencies. Entire departments do nothing but predict future demand. In this case, a new scheduling application should be especially well aligned with these competencies, but need not have predictive functionality itself. A good import function, workflow and a logical relationship between planning activities will suffice.

2. Easier to replace than a platform solution

Each application has its own life cycle. Replacement may come up due to new technology becoming available or due to the cessation of maintenance on existing applications. In either case, replacement is an issue. Of course, "unplugging" a best-of-breed point solution is easier than replacing an entire platform. The amount of work to re-establish integrations with the new application is smaller than when replacing a platform solution.

3. Clear place in logical infrastructure.

Applications with a specific role within a best-of-breed architecture have their own specific relationships with the rest of the IT environment. Modern integration solutions make it possible to exchange only that data between applications that is strictly necessary for the execution of this process. Thus, it is no longer necessary to copy entire data sets from one application to another. This makes it clear which application is the source and where master data management also takes place. In addition, a major advantage is that the interrelationships between applications form a manageable intelligent layer in the architecture.

4. License costs per application.

The licensing structure of a platform solution usually contains little in the way of differentiation. Even if you only use a limited number of features of the application, you pay for the entire platform. Using a best-of-breed strategy with separate applications often does create the opportunity for differentiation. The user group of the application uses the functions intensively in a way that suits the purpose and therefore the target group of the application. Only those employees who belong to the target group receive an (extended) license. Because the target group fits use (use case) of the application, the risk of license proliferation is also lower and you can control costs.

5. Greater agility in digital transformation

Digitalization delivers opportunities and threats. Competitors from unexpected quarters, new customer travel opportunities or process efficiencies. New applications enable the change in the operational model. Especially if the application can easily fit into the existing architecture, including the accounting treatment of the changed process. Through a best-of-breed strategy, your organization is better able to act quickly in changing market conditions and new business models.

Selecting is customized and requires skill

As mentioned earlier, there are also arguments to be made for choosing a platform approach instead. Which strategy is the best fit for your specific situation depends on many factors. Think about: which choices have been made in the past, so which legacy needs to be taken into account? How complex are the requirements of the various processes and do you want to cover them in one environment or is it more logical to go for the best fit per process? What are future (IT) architectures to consider?

There are, of course, many more questions that need to be answered when faced with the consideration of adopting a best-of-breed strategy and choosing a new solution. Therefore, it is essential to take a careful and thorough approach to this process. Having the intern do a little market research and ask for some demos is really not enough. These are crucial business processes and the choices made can have an impact for years to come. You should therefore let a party who knows the market, who can support you in obtaining the requirements and who can guide you in the direction of the solution that best suits your needs guide you. Finext is such a party.