Your organization is divided on ERP customization. How do you navigate conflicting opinions effectively?
When your organization is divided on ERP (Enterprise Resource Planning) customization, finding common ground is essential. Here's how to address differing opinions effectively:
How do you handle conflicting opinions in your organization?
Your organization is divided on ERP customization. How do you navigate conflicting opinions effectively?
When your organization is divided on ERP (Enterprise Resource Planning) customization, finding common ground is essential. Here's how to address differing opinions effectively:
How do you handle conflicting opinions in your organization?
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If you believe that AI will be a major driver of your organizations success over the long term then you should avoid ERP customization as much as possible. Why? Because each customization carries the risk of AI hallucination. ERP customers need to push as much responsibility for code back to the ERP vendor as possible. Otherwise you are forever responsible for maintaining it. Customizations will slow down your ability to adopt innovation. Now, I am not suggesting that you shouldn’t customize. HOWEVER, do so for the right reasons and because it’s a long term business requirement - not placating some internal business process owner that can’t think differently.
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Both sides of the camp are missing the point here. On the one hand, customizing your bread and butter business processes like Accounts Payable are a sign of organizational immaturity. There are best practices here, and your organization should be able to adhere to them. On the other, customizing your ERP to do the 10% that makes your business special makes a ton of sense. It is your differentiator. The issue you have in 2024 is that vendors like SAP are violently anti-custom code, so you have the vendor lens and decision point - do I put my innovation in my ERP, or do it somewhere else?
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There is always pressure to customize from stakeholders who don't believe that the standard processed delivered by the ERP system could possibly meet their unique requirements. I believe the outcome will be driven largely by two factors: 1) Governance - Senior management should be fully engaged with the project and governance should be in place to review all customization requests. Ideally, there is a desire and a mandate for processes to be globally standardized as much as possible. 2) Process - The relevant processes should be reviewed to be certain the standard ERP system doesn't meet the requirement. The suggestion for external consultation is appropriate to be certain a standard option hasn't been overlooked.
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Customization will increase total cost of ownership (TCO). If it is ABSOLUTELY needed for your business (based on independent review by a third party other than the system integrator running the project), you must customize. Such decisions should NOT be taken lightly and be based on input from the steering committee (inclusive of C level input) as there will be long term consequences of such decisions.
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foster open communication by organizing cross-functional meetings where all stakeholders can voice their concerns and objectives. Focus on understanding the underlying business needs driving customization requests. Evaluate the pros and cons of customization vs. out-of-the-box solutions, considering long-term scalability, cost, and maintenance. Present data-driven insights on the impact of customization on system performance and future upgrades. Align decisions with the organization's strategic goals and facilitate compromise by prioritizing solutions that provide maximum value while minimizing risks.
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