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Vertical solutions versus add-ons in ERP: what you really need to know

Why this matters

Are you about to select or expand your ERP system? Then you’ll inevitably come across these two terms: vertical solutions and add-ons.

They may sound similar but serve completely different purposes.

And that difference is crucial — it determines how well your ERP will truly align with your processes, industry, and day-to-day operations.

In this article, we’ll clarify what each one is, how they differ, and when to use which.


What is a vertical solution?

A vertical solution arises from the need to tailor ERP systems to specific industries — such as construction, logistics, fashion, food, or pharmaceuticals — where processes and regulations often deviate significantly from the standard.

It’s an industry-focused extension of an ERP system, providing deep functionality for processes that the standard system does not support.

Important: a vertical solution is technically and functionally dependent on the underlying ERP platform — it cannot operate independently.

Key characteristics

  • Developed using the same tools or PaaS within the ERP platform’s architecture.
  • Extends standard functionality to cover sector-specific processes.
  • Created by ISVs (Independent Software Vendors) or certified partners with industry expertise.
  • Also referred to as an industry solution or ISV solution.
  • Fully integrated with the ERP core and designed to support end-to-end industry processes.

Examples


What is an add-on?

An add-on is a functional extension that enhances ERP with essential features not included in the standard — such as document processing, bank interfaces, scanning, EDI, or forecasting.

Unlike vertical solutions, add-ons are typically industry-neutral, ERP-agnostic, and sold separately. They focus on a single task or process, are quick to implement, and connect via APIs or standard integrations.

Key characteristics

  • Less deeply embedded in the ERP core, but often vital to daily operations.
  • Developed either as a native extension or external integration.
  • Flexibly applicable across sectors and compatible with various ERP platforms.

Examples


Vertical solution vs. add-on in one sentence

A vertical solution is ERP-dependent and industry-focused. An add-on is ERP-agnostic and task-oriented.

Smarter choices for ERP selection or expansion

By clearly understanding the difference between vertical solutions and add-ons, you’ll make better-informed decisions — and ensure your ERP landscape is future-proof in terms of scalability, flexibility, and industry fit.