ERP Software Customization | When Is It Necessary And How To Do It Effectively?
Enterprise Resource Planning (ERP) software serves as an all-encompassing solution for effective business management, enabling companies to seamlessly integrate diverse business processes into one cohesive system. While off-the-shelf ERP software can provide a range of benefits, it may not always meet the specific needs of a company. Customizing ERP software can address these specific requirements but also comes with challenges and risks. Therefore, companies need to carefully consider whether to customize ERP software or not. In this article, we will discuss when companies should customize ERP software and how it can be done.
When is ERP software customization necessary?
Unique business processes:
Every company has unique business processes that cannot be standardized by off-the-shelf ERP software. Therefore, customization may be necessary to meet the business’s needs. For example, a manufacturing company may have unique production processes that require specialized modules for inventory management, planning, and scheduling. By customizing the ERP software, companies can tailor the system to meet their unique requirements, guaranteeing a perfect fit.
Competitive advantage:
The customization of ERP software empowers companies to distinguish themselves from competitors, thereby gaining a competitive advantage. For example, a company may develop a customized module that streamlines its supply chain process, providing better visibility and control over its operations. Customizing ERP software can lead to quick order fulfillment, enhanced customer satisfaction, and an enhanced market reputation. Additionally, it empowers companies to proactively embrace industry trends and effortlessly navigate evolving business landscapes.
Cost savings:
The act of customizing ERP software can generate significant long-term cost savings. While off-the-shelf ERP software may seem cheaper initially, it may not provide the required functionality, resulting in additional costs for customization, maintenance, and upgrades.
Through customization, ERP software can be tailored to fulfill the specific requirements of a company, reducing the necessity for additional software or tools. Moreover, it can enhance productivity, leading to decreased expenses associated with labor and resources. However, one of the primary hurdles in implementing ERP software is the successful adoption by users.
User adoption:
User adoption remains a prominent challenge when implementing ERP software. Employees may resist using the new system if it does not meet their specific requirements or if it is difficult to use. Customizing ERP software can help address this challenge by developing a user-friendly interface and incorporating features that align with the company’s culture and values. This can increase user adoption, resulting in higher productivity and efficiency.
How to do ERP software customization effectively?
Identify the specific requirements:
The first step in customizing ERP software is to identify the specific requirements of the business. This includes identifying the unique business processes, user requirements, and functional requirements. Companies should involve all stakeholders, including employees, managers, and customers, in this process to ensure that all requirements are captured.
Evaluate the available options:
Once the specific requirements are identified, companies should evaluate the available options for customizing ERP software. This includes evaluating the existing modules, add-ons, and plug-ins that can be used to meet specific requirements. Companies should also consider developing customized modules or applications if existing options do not meet their requirements.
Develop a customization plan:
Once the options are evaluated, companies should develop a customization plan. This includes defining the scope of customization, developing a timeline, and identifying the resources required for customization. When considering customization, companies should carefully evaluate the long-term implications, taking into account factors such as the costs, complexities of maintenance and upgrades, as well as the availability of vendor support.
Test and validate:
Customization should be thoroughly tested and validated before implementation. This includes testing the customized modules for functionality, performance, and compatibility with other modules and systems. It may also require additional testing and validation after every upgrade or maintenance.
Train employees:
Customization can impact the user interface and functionality of ERP software. Hence, providing comprehensive training to employees on the customized features and functionalities of the system becomes crucial. Such training enhances user adoption and ensures that employees utilize the system effectively.
However, companies should also consider some factors associated with customizing ERP software before making the decision.
Cost and time, upgrades and maintenance, vendor support, and compatibility.
