Finding the Right Balance in Your ERP
Making sure an ERP works for your company and your requirements is key, but can be surprisingly tricky. A challenge often encountered when implementing an ERP system is knowing the difference between customisation and configuration and the way these will impact the unique build of each ERP. Being clear on each type allows for better decision making and clearer communication to teams about the limitations of change.
ERP Customisation and Configuration: What’s the difference?
ERP Customisation
ERP Customisation involves making changes to the software’s core code to add new features, change its behaviour, or integrate it with other applications. This typically requires specialised development skills and an understanding of the software’s architecture to implement. It is equally important prior to these changes though to be clear on the requirements of the ERP system to hit your business goals around streamlining processes and optimising efficiencies.
These systems are designed to work exactly the way a business wants them to and can be tailored to include only the features and functionalities that the business requires.
ERP Configuration
ERP Configuration refers to adjusting the settings and preferences of an existing software application to meet the specific needs of a user or an organisation. This is carried out without making major changes to the underlying code.
Generally, configuration is simpler and less costly since it relies on using the software’s inherent features and settings. You can start to see the importance of understanding the differnce now!
Deep Dive into ERP Customisation vs ERP Configuration
Advantages of ERP Customisation
Customisation provides a high level of flexibility to tailor an ERP to specific business needs. The implemented ERP is more likely to have features and functions that are necessary for a business which in turn has benefits such as:
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Competitive Advantage
Having exactly what you need when you need it gives you the advantage to hit the ground running and start working on the things that matter. Going down the customisation route may reduce time spent training and creates a unique ERP that can give your business a competitive edge.
2. Improved User Adoption and Satisfaction
Customisation generates the ability to get into the detail and make small scale changes that align completely to the needs of the business and its users. This removes the need to change or compromise on ways of working for users which increases the likelihood of adoption and satisfaction.
Disadvantages of ERP Customisation
Understanding the disadvantages of a customisable ERP is crucial for making informed decisions. While customisation offers flexibility to align with specific business needs, it can also lead to significant challenges:
1. Higher Initial Costs and Implementation Time
Customisation can be time consuming to implement, especially if your organisation has specific ways of working that need time to change. The complexity of customisation often requires specialist software developers which mean that the initial cost and implementation time is increased.
2. Over customisation
Over customisation blurs the line between what is necessary and what would be nice to have which can prolong development and increase costs.
3. Upgrade and Compatibility Challenges
Customisations can make ERP upgrades complex and risky. When the core software is updated, custom code may become incompatible causing system failures, extended downtime, and more maintenance efforts. Customisations could pose small challenges in adopting new features and functionalities, hindering the organisation’s ability to adapt to changing business needs and industry trends quickly.
When customisations become outdated or incompatible, businesses may face costly and time-consuming re-engineering efforts, potentially impacting productivity, customer satisfaction, and overall business performance. it is important to note though that the time and costs associated with these changes may also lead to great returns on efficiency and minimising costs in the longer term.
Advantages of ERP Configuration
Configuration can be a great choice with many benefits when choosing an ERP implementation, two key benefits are:
1. Enhanced User Experience
Configuration often leads to a smoother user experience. With quicker adoption and training times, employees can become productive sooner. Vendors frequently provide pre-built training materials, reducing the internal resource burden.
Configuration provides the ability to quickly update and minimises system downtime. By aligning with industry standards, organisations can streamline operations, improve efficiency, and achieve better overall results.
2. Cost-Effective Configuration
Adopt a future-ready approach with pre-configured solutions aligned with industry standards. Regular updates and new features from trusted vendors empower your organisation to adapt to evolving business needs and maintain a competitive edge. All of this together minimises the need for costly customisations and ensure ongoing optimisation.
Disadvantages ERP Configuration
Understanding the disadvantages of a configurable ERP is equally important as understanding the advantages. It helps you make informed decisions and avoid potential pitfalls. Here are some key disadvantages:
1. Limited Flexibility
A configured system may not be fully meet your organisations needs or have the features that are necessary for your organisation to do their business as usual. This potentially leads to redesign work processes to fit around the new system and processes. This can be time consuming.
Once the system is configured, making substantial changes can be challenging and time-consuming. This can hinder a business’s ability to adapt to evolving market dynamics or unforeseen operational needs. Complex business processes may not always align perfectly with the pre-defined configurations, potentially leading to workarounds or compromises.
2. Disruptions during adjustment
When modifications are made to the system, there’s a risk of unintended consequences, such as errors in data processing, workflow interruptions, or system instability. These disruptions can lead to decreased productivity, operational inefficiencies, and even financial losses.
Without effective change management, testing and a roll back plan in place the disruptions to the business are at higher risk and cost.
How to Decide Between ERP Systems?
The key to successful ERP implementation lies in finding the right balance between customisation and configuration. By carefully assessing your organisation’s specific needs and constraints, you can make informed decisions that drive operational excellence and strategic growth.
Deciding between a customisable and configurable ERP depends on your business’s unique needs and long-term goals. Configurable ERPs offer pre-built functionalities that can be tailored to your processes through settings and parameters, making them a cost-effective and faster implementation option. However, they may not perfectly align with highly complex or niche business requirements. Customisable ERPs provide greater flexibility, allowing you to modify the underlying code to create bespoke solutions. This offers more control but can be more expensive and time-consuming to implement and maintain.
Consider factors like your budget, timeline, level of customisation required, and long-term scalability when making your decision.
How Can Our Consultants Help You?
Tired of a one-size-fits-all ERP solution that doesn’t quite fit your business? Struggling to decide between customisation and configuration? Let’s dive into the world of ERP, where the right choice can significantly impact your operations. We’ll explore the pros and cons of customisation and configuration, and help you find the perfect balance for your unique business needs.
An ERP implementation can be a complex undertaking, but a skilled consultancy team can guide your business to success. We can help you select the right ERP solution, streamline processes, manage the implementation, and ensure a smooth transition. With our expertise, you’ll gain a unified system that boosts efficiency, improves decision-making, and positions your business for growth. Get in touch today!
