The introduction of ERP systems has reformed the performance and flow of organizations in several ways and helped them extend their digital core to the last mile. It has driven organizations to experiment with a number of ways to improve the efficiency of the ERP systems.
Using an ERP system requires a business owner to customize and tweak it according to their requirements. However, it might lead the business owner to heavily customize the function of the ERP system, which could deprive the ERP system of its primary functions.
If a business owner is adamant about ERP system customization, it could result in the following long-term effects
ERP system customization can create problems during implementation:
The concept of ERP implementation and customization is a fairly new concept. It’s no surprise that the lack of a proper ERP system has resulted in the over-customization of the ERP system. Furthermore, it has led to organizations adopt a no-customization system to alleviate the risks of ERP systems.
Customizations are not considered easy to manage, and they could potentially disturb your implementation budget. Moreover, they might also drive your employees to adapt to a new business process, so the concerns regarding customization is a valid concern.
To top it all, ERP system customization might also result in experimenting with a series of systems, which could be detrimental to the integrity of the systems.
ERP system customization can create problems after implementation:
If you can take the initiatives to ensure successful customization of the ERP system, it could result in a series of problems after its implementation. It could make the software challenging to upgrade since the code of the ERP system requires to be rewritten to support the latest versions of the software. As mentioned earlier that the customization of the ERP system could lower the efficiency of a business, so it should be mitigated using a clever approach.
Vanilla ERP systems can result in organizational change issues:
When an organization considers integrating an ERP system into its business practices, it might take organizational change management into its account. However, the changes are bound to increase if the organization is not adamant on making changes to its current system.
It might require the organizations to use vanilla ERP system which might be considered as an approachable and implementable route for a handful of the organizations. to deal with the customization of the system to cater to the organization change concerns.
Vanilla ERP systems can result in strategic disadvantages
It is no wonder that the customization of an ERP system can result in addressing the occurring issues in an organization efficiently.
The problem is regardless of the performance of any ERP software, it is not going to address 100% of the organizational needs. If you are familiar with how ERP systems work, you may have noticed tradeoffs in them, which play their role in how an ERP system should work.
Also, the inclusion of the tradeoffs can result in disrupting the strategic flow of a business which requires being corrected by taking correct initiatives. However, once your organization’s requirements of implementing an ERP system is combined with adding competitive advantage to the needs, it will result in the ERP system customization of certain areas, which would serve as a strategic disadvantage in the long run.
Reach out to us at appsFreedom and reinvent digital transformation. You can also read our blog on the top 5 ways mobile ERP apps increase overall efficiency in the enterprise.