If your company is implementing Enterprise Resource Planning (ERP) software then you must have come across a very common question that is asked – To customize or Not to customize? Is ERP customization bad for your business? In this article we will be analyzing this aspect of ERP implementations.
Many companies invest heavily in implementing ERP in their organizations. How many of them realize the Return on their Investment (RoI)? One of the key reason holding back companies that have implemented ERP is the risk of customization. Traditional ERP vendors have always avoided customization by putting forth the argument that their product offers best practices. However in a competitive world customization can set one company apart from another company and give it the very competitive advantage that they are looking for.
Modern ERP products like NetSuite give companies extensive options to personalize, configure and customize the ERP according to the needs of the organization implementing it. Customization should not be holding you from achieving your business objectives and competitive advantage.
What are the disadvantages of customization?
Traditional ERPs when heavily customized – make it impossible to upgrade. We have come across numerous instances of traditional ERPs like SAP still operating on old versions as they were heavily customized.
If the product does not support customization – upgrades can result in breaking everything.
Why shall we customize ERP?
If the customization is a result of change issue (organization mentality of not being able to change) then it may not be advisable. Customization should be based on need to adopt the best practices – either of the product or of the company.
Want to know why customize your ERP? Well – here are some of the reasons for customization –
- Each ERP will have some gaps in functionality. To fill the functional gaps it is advisable to customize.
- To simplify the processes or make a User Interface more user friendly we recommend to customize.
- To implement business rules or handling the data.
- To implement best practice process in the organization.
Types of ERP customizations
The types of ERP customization include –
- Analytics – Creating new Reports and Dashboards
- User Interface – Changing the UI
- Data Model – Organization specific data fields and modules
- Business Logic – Function, workflow
If your software is not supporting the ERP customization – it is time you should evaluate other products like NetSuite ERP. Customization should not be preventing your organization from achieving its business objectives.
With the modern ERP products like NetSuite – Customization is Good word.
Connect with us to know more about NetSuite and to evaluate replacement your existing non-customizable ERP.