In the realm of Enterprise Resource Planning (ERP) systems, the terms “customising” and “configuring” are often used interchangeably, but they represent significantly different approaches. Misunderstanding these concepts can lead to costly mistakes and inefficiencies. In this post, we’ll explore the critical differences between customising and configuring an ERP system and why it’s essential to stick with standard functionality.
What is Configuring an ERP System?
Configuring an ERP system involves setting up the system’s parameters to align with your organisation’s specific requirements. This process utilises the inherent standard functionalities provided by the ERP system. Configuration includes adjusting settings, defining user roles, setting up workflows, and tweaking other options that are built into the system.
The key advantage of configuration is that it keeps you within the boundaries of the ERP system’s designed capabilities. ERP systems are developed based on industry best practices, and by configuring them, you are ensuring that your business processes align with these standards. Configuration is a straightforward, non-invasive way to tailor the system to your needs without altering the core code.
What is Customising an ERP System?
Customising, on the other hand, involves altering the ERP system’s code or adding new features that were not originally included. This might include developing new modules, writing custom scripts, or making changes to the existing codebase to meet specific business requirements.
While customisation can provide a tailored solution for unique business needs, it comes with significant risks. Customisation often leads to increased complexity, higher maintenance costs, and potential issues with future system upgrades. It moves you further away from the industry best practices embedded in the standard ERP functionality.
The Risks of Unnecessary Customisation
Ignorance about the standard functionality of an ERP system can lead to unnecessary customisation. Many times, businesses jump to customise their ERP system because they are unaware of the capabilities already available through configuration. This can have several negative consequences:
- Increased Costs: Customisation is expensive. It requires additional development, testing, and maintenance efforts.
- Upgrade Challenges: Customised systems are harder to upgrade. Each new version of the ERP system might require reworking the custom code, leading to further costs and delays.
- Complexity and Downtime: Customised systems are more complex, increasing the likelihood of bugs and downtime.
- Divergence from Best Practices: By customising, you may be deviating from industry best practices, potentially leading to inefficient or suboptimal business processes.
Stick with Standard Functionality
ERP systems are designed by professionals who have embedded best practices into the software. By leveraging the standard functionality through configuration, you can ensure that your business processes align with these proven practices. It’s important to listen to the experts and resist the urge to customise unless absolutely necessary. Here are some guidelines to help you make the right choice:
- Understand Your ERP System: Invest time in learning the full capabilities of your ERP system. This can help you identify existing functionalities that meet your needs.
- Consult Experts: Work with ERP consultants who have extensive experience with the system. They can guide you on how to best configure the system to fit your business processes.
- Evaluate Business Processes: Instead of forcing the ERP system to adapt to your existing processes, consider adapting your processes to align with the best practices built into the system. This often leads to more efficient and effective operations.
Conclusion
In conclusion, while customisation might seem like a quick solution to meet specific needs, it often leads to more problems in the long run. By focusing on configuring your ERP system and leveraging its standard functionalities, you can take full advantage of the industry’s best practices. Remember, the goal is to let the system work for you, not the other way around. Embrace the inherent capabilities of your ERP system and align your business processes accordingly to achieve optimal efficiency and effectiveness.
