Customization is one of the most controversial subjects concerning ERP software. The majority of ERP software purchasers have every intention of leveraging an out of the box software solution during their selection process. However, as project teams get into the details of the software during the implementation cycle, requests to make one or more customizations to the software are almost inevitable.

Only about one quarter of organizations purchasing an ERP system implement an out of the box solution with little or no customization. The remainder customizes their software, with a third relying heavily on customizing the ERP software solution. According to research, large companies with over $500 million in annual revenue are even more likely to customize their ERP system, as are companies in the aerospace, defense, and government industry.

Customization Defined'

Configuration refers to the normal set-up of the system, such as parameters, fields, and workflows. These changes are a standard part of any implementation and do not require changes to the source code. Customization, on the other hand, requires changes to the source code and also requires a higher level of technical sophistication. In some situations, business requirements and objectives can be met via configuration and set-up instead of customization.

The Downside of Customization'

Customization can increase the complexity and risk of an implementation, while at the same time making it potentially more difficult to upgrade software in the future. It can also undermine best practices which may have been built into the software. Customizations are sometimes symptom of other problems, including a mismatch with a company’s requirements or a lack of project controls during implementation.

How to Avoid the Downfalls of Over Customization'

Try to ensure clear, company-wide definition of business requirements. One of the primary reasons for customization is lack of direction regarding business requirements. If business requirements are ill-defined, it is more likely that a project team will make custom changes to the software to meet requirements as they are defined. In addition, clearly defined business requirements will ensure that a buyer chooses the best matched ERP system during the ERP software selection process. Establish solid ERP system project controls. Without strong project controls and project governance, a project team is more likely to customize every item on the buyer’s wish list without prioritizing, rationalizing, or identifying potential solutions within the core functionality of the system. The executive steering committee and project manager need to clearly define criteria for potential customizations; even including a cost-benefit analysis of the customization to ensure that a buyer is only customizing where is provides them with a unique competitive advantage and especially where there is no viable workaround within the ERP system.

Another way'

Another approach to the customization controversy is to utilize an ERP system that minimizes or eliminates the negatives usually associated with customization. Vendors which offer ERP software built with an n-tier structure allows the client’s customizations and interfaces to be stored in a separate layer from the programming and business logic layers. This enables faster, easier customizations, and future changes to the system can be made with ease as well as updates to any underlying software applications. This type of mulit-tier system gives buyers and vendors more room to make customization changes without increasing the complexity and risk usually associated with customization.

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