Marketing Technology: Best of Breed or Single Vendor Solution?
Published on 8 May 2018 | Author Paula Schmidt-Lüer0
No more marketing without IT. Whether digital dialogue marketing, data analytics, programmatic advertising, or other (digital) marketing disciplines – the challenges of digital transformation in marketing cannot be mastered without suitable technologies. There are two main approaches to the use of marketing technologies: best of breed and single vendor solution. What distinguishes these two approaches is explained in this article.
Best of Breed – The Best Solution for Every Challenge
Digital marketing today consists of a variety of disciplines. The idea behind the Best of Breed approach is to flexibly select the most suitable technology for each discipline and to integrate the individual systems with one another. The resulting system landscape is also referred to as the marketing stack. On the other hand, there is the Single Vendor Solution approach.
Single Vendor Solution – One System for Everything
The Single Vendor Solution (also known as Full-Stack Solution) approach provides all essential functions in a single technology. Most Single Vendor Solutions are based on a modular system. If further functions are required, the appropriate modules (subject to a charge) can be activated. With this approach. The greatest effort is primarily required to adapt the very complex software to the existing company processes and system landscapes.
Advantages at a Glance
Both variants offer a variety of different advantages.
Best of Breed:
- Flexible adaptability of functionality and system landscape to the individual requirements of the company and business model
- No dependency on a single provider
- Successive rollout and thus sometimes lower costs for the adaption of internal processes and structures, as new technologies adapt to existing system landscapes
- In an ideal case, possibilities of influencing the further development of individual technologies or individualization
- Competitive advantages through the best possible technology combination
- Less training effort
- Less coordination effort with different providers
- Systems are presumably better integrated with each other and functionally interlocked
- Various functions from a single source, which may lead to better interaction
- Contractual relationship and negotiation with a provider
The brief overview of the main advantages shows that it is difficult to make a general assessment of which approach is the “better” one. Of course, there are also mixed forms. Ultimately, it is an individual decision that takes factors such as business model, resources, goals, or existing system landscapes into account.
The current market trend is towards the Best of Breed approach. According to Chiefmartec study, 48 percent of companies prefer the Best of Breed approach, whereas only 21 percent favor the Single Vendor solutions. The remaining 31 percent either rely on individual single-function technologies, on in-house developments, or they do not use any marketing solution at all. The study Digital Data Insights by the Stuttgart Media University comes to a comparable result. Approval if the Best of Breed approach is about as twice as high as for the Single Vendor Solution approach. Some of the experts surveyed in the study justified in particular with the performance of specific tools and the lack in integration of Single Vendor Solutions in practice. Especially for larger companies that cannot adapt their processes/organisation to standard software, and for companies that want to stand out from their competitors and expand their unique selling points, individual software and thus the Best of Breed approach is ideal.