The problem with a standard ERP system is that they solve many use cases for many industries, since it’s a standard, makes sense, right? The solution: ERP Customizations!
95 % of businesses improved their business process after implementing ERP customizations if you are a believer of statistics and a whopping 80 % of ERP customers have customizations!
To unleash the beast you can configure or customize your ERP, in both cases you need a technical person to assist you. So, in the sake of this non-technical article I refer with ERP configuration the same as ERP customization.
How to manage ERP customizations successfully
- Search the ERP problem and opportunity costs
- Get a professional consulting
- Execute the project with this checklist
- Common customization errors and CONS
Search the ERP problem and opportunity costs
Your daily work with the ERP must become better therefore you need to find the spot which costs you time (and nerves). Here are some questions which help you to identify such opportunities, include all your internal and external department which are in touch with your ERP:
- Which single task within your ERP takes the most time?
- Which single task is quite fast but you need to repeat it many times a day?
- Do you hand-type data from other external sources like PDF, Excel, Email, Websites or other Software?
- If you think about your daily tasks in ERP, what tasks give you a headache?
The answers to this question will help you to find the pain and before searching for an expert it may be worthy to do your own research for an existing solution to your problem.
Get a professional consulting
Now, you can find workflow optimizations for you and your ERP. Brainstorm and think on your own, then you can hire a software company to implement your solution. BUT I highly recommend hiring a company with consulting experience since a “normal” software company could technically implement the steps you dedicate, but they will work like soldiers and do exactly what you say, without re-thinking and without consulting.
Consulting is crucial in ERP customization because there are many pitfalls and in the long term a “no-consulting” project will cost you significantly more:
- Find a Software development company with consulting service for your EXACT ERP (like MS dynamics, SAP, AMS, ProAlpha etc)
- Verify the reputation of the company by asking for successfully completed projects.
- If the consultant does not ask you “why” during your optimization ideas then its a sign of a soldier and probably it’s not the Best solution you will get.
- Let them calculate a ROI for the offered Project, since without a good ROI you should not start the project.
- Ask for go live support and yearly maintenance costs for the customization itself.
Execute the ERP project with this checklist
You found a trustworthy expert who consults and implements the ERP customization for a valuable ROI, congrats! Now, it’s time to come back to reality. Therefore make sure that your customization project will be successfully:
- Weekly status reports are required to understand if your project is still on track.
- Make sure you have enough available resources to help your expert, because it requires you to give me certain accesses, test data, answers and to execute tests.
- Include key-users as soon as the core-features have been implemented to guarantee a stable base of the customizations.
Common customization errors and CONS
Though customization will increase productivity it must be executed with caution:
- Most implementations cost 3-4 times more than initially budgeted.
- Only 62 % of the ERP projects finished within the planned Go-Live schedule.
- Without customizations the running ERP costs are much easier to predict.
- Each upgrade to a new major version of your ERP system comes with potential to break the customizations, so a compatibility coding must be ordered from your ERP expert.
- If too many customizations are in place could be a sign of changing workflows to better use the standard ERP features and processes.
Common examples for customizations
- Modifying existing ERP graphical input Forms
- Automated data import / export.
- Custom validations on specific events.
- Create custom fields, lists and forms.
- Custom ERP integration with important internal Software.
FAQ to ERP Customizations
What is the difference between configuration and customization ERP?
If coding is necessary then we speak from customization and require a coding expert for your specific ERP system.
If you can change the ERP by “clicking” within the settings/options then this is called configuration. May a ERP user can configure the system but for the best workflow optimization also an ERP consulting expert is the best advice for most cases.
What are the 5 components of ERP?
Each ERP is different but we can say that each ERP includes: finance, human resource, logistics and manufacturing, supply chain management, and customer relationship management.
Why is customization not desirable in ERP?
Wrongly executed customizations cost more in the long-term due to maintenance- or opportunity- costs of not upgrading to a new major version of the ERP.
What are examples of an ERP?
SAP, Microsoft Dynamics 365, MS Navision 2014-2018, MS AX, ProAlpha, Abas, R&M, AMS, Oracle Fusion
Do you plan to switch to Oracle Netsuite ERP? Then make sure to know the pitfalls from the experience we shared in the recent post.
Does ERP require customization?
Small companies probably can work around individual needs by using out-of-the-box ERP features and adapting to workflows introduced by the ERP creators. If customizations are required it is very individual and depends on the daily work of your company. For example, SAP offers lot of existing Integration to other systems which are worth a visit since you could avoid customizations, especially for Sales Force integrations.
What is the advantage of ERP systems are customized?
Employees touching the ERP can highly benefit from customization which automates some processes or offers new workflows to reduce errors and increase speed. All scenarios are resulting in time-saving of employees, which at the end comes back at the total expenses of the company.
Do you need help with ERP?
I am an Expert in ERPs as an engineer and consultant with over 8 years of professional development experience in data integrations with ERP systems of all kinds. So, you are in the right place to ask questions:
- I successfully consulted and implemented ERP customizations
- My expertise: SAP, Microsoft Dynamics 365, MS Navision 2014-2018, MS AX, ProAlpha, Abas, R&M, AMS and Oracle Fusion
- For any questions, contact me now, and I always find a solution!
- patrick@limitlesspatrick.com
- On Fiverr @Patrick_iTech
About the author
Patrick Gruber is homeless because
he made his dream of being a digital nomad real.
He started as a developer, ventured into Amazon FBA business, invested in the market, founded a Cardano Stake Pool, and started his blog in 2022.
His blog shares his insight into the LIMITLESS possibilities of life.
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