Is ERP Customization Worth the Cost?

Enterprise resource planning, or ERP, is a relatively new word in business. It was first used in the United States in the early 1970s and became a sensation within the business world. ERP refers to a group of software applications, and in particular an integrated whole-system approach. The ERP software will allow users to coordinate all business functions, activities, and systems across an enterprise. Enterprise resource planning is simply the integrated management of key business processes, usually in real-time and mediated by technologies and software.

ERP System

Businesses are turning to ERP software because it allows them to manage the business functions more effectively, and in some cases more cost effectively, than ever before. The benefits of using ERP systems typically include: reduced costs of ownership, increased productivity, and better reporting. ERP also helps ensure that employees remain compliant with company regulations. However, when deciding whether to use ERP or not, there are several questions to ask. Here are some of them:

How will I know what ERP system I need? There are many different types of ERP software, and not every type is appropriate for every business processes. So a company should first ask whether it makes sense to implement ERP through a software solution such as enterprise one. enterpriseone supports almost every kind of ERP system, so a company should have no problem finding an ERP solution that works for its needs.

Will I need to change my business processes after implementation? ERP solutions are very flexible and modular. They enable companies to use existing processes and modify them according to their requirements. In fact, this flexibility is one of the hallmarks of ERP systems, which allow companies to implement best practices more effectively. For companies who may want to retain some of their current processes but who would like to make the most of ERP benefits, ERP customization is the way to go. Enterprise resource planning (ERP) systems provide a great way to simplify processes and better manage resources.

Will there be any advantages of ERP customization? Customization offers several distinct advantages for ERP software systems. First, a company will have more freedom to choose the modules and functions that make up an ERP system. Next, by changing certain parts of an ERP system, a company can take full advantage of ERP customization and obtain a more practical and viable enterprise.

Will changes in business practices affect my ERP? The key to implementing ERP software is to create an environment that will support best practices. Enterprise resource planning (ERP) systems often include business process modeling (BPM), which allows managers to map out the actions necessary to convert existing processes into ERP procedures. Business process modeling also allows managers to examine and measure the success of those new ERP procedures, such as purchasing of products, processes for inventory and delivery, and other business processes. However, business practice changes are inevitable and changing them can sometimes interfere with ERP implementation and training.

How will I know what changes I need to make to my current ERP system? ERP customization is possible, but it’s not an easy thing to do. Before making any ERP system changes, managers must evaluate their business processes and look for areas that require improvement. The first step toward ERP customization is to evaluate your current ERP software to determine what modifications, if any, you need to make to the system. Then, get input from your team about how those modifications should be implemented and tracked.

What if I already have an ERP system and don’t know how to customize it? In most cases, ERP customization will involve making changes to the existing ERP system rather than starting from scratch. ERP system enhancements are designed to enhance existing processes and procedures, so some processes may already be well implemented and enhanced. Usually, you can start by looking at processes that are directly related to your company’s business, such as purchasing, inventory, and distribution. In that case, you’ll probably only need to make small changes to enhance those processes, and a professional ERP consultant can help you with more involved ERP system enhancement processes.