What are the most effective strategies for ERP customization?

Before customizing your ERP, conduct a comprehensive analysis of current business processes and identify gaps. Prioritize needs to avoid unnecessary complexity. Clear goals minimize the risk and cost of the ERP project.

It is also important to review the existing processes that does not fit into the ERP and consider changing your processes to fit into the standard functionality in ERP if possible. Most ERP systems are developed with the best practices and aligning with the standards in the system might improve your internal processes too.

Most good ERP systems offer many configuration options. If you think that these are insufficient, and believe that customisation is necessary, you might want to ask yourself if you have chosen the wrong system. If you can't find a system to do what you want then, before spending a king's ransom on customisation, also ask yourself why no system does all that you want: perhaps it's because nobody else thinks that it's a good idea. I once worked with a client who had "negative discounts": instead of reducing their prices for some customers; they had 'lowest possible prices' and increased them by a percentage for different classes of customer. They couldn't identify an ERP system that offered that option but was it really necessary?

1. Understanding ERP Customization 2. When to Consider Custom ERP Development 3. The Pitfalls of Overcustomization 4. Benefits of ERP Customizations 5. The Cost and Complexity of Custom Development 6. Selecting the Right Customization Approach 7. Common ERP Customization Examples 8. The Role of ERP Consultants in Customizations 9. Effective Change Management

For any ERP system, base consideration should be 1. Current business ecosystem 2. Automation and maturity level of different touchpoint required for integration. 3 Fitment of technology/solution based on must to have rather than good to have 4. Maturity level of process & state of digitization . Any ERP customisation can be done to assist standard business flow. Customisation for any non standard or non erp process, should be avoided. It is seen that some organization gets into heavy customisation of erp for which later stage they find difficult to change any process / technology. ERP customisation also requires well defined documentation process with complete data flow. In lot of organization it is a challenge.

Select an ERP platform aligned with business needs. Consider flexibility, adaptability, and customization options. Cloud-based platforms may offer scalability and cost-effectiveness but might have fewer customization options compared to on-premise solutions.

Selecting the Platform and selecting the deployment option are two different beasts. The deployment options (cloud, ground, hybrid) are influenced by questions of scalability, speed of innovation, capabilities, industry needs, simplification and legal requirements - to name a few. Since we live in an ever changing world, you need to keep your options open e.g. if you go On Premise, you may want to design it in a way that allows you to migrate into the Cloud at a later point in time. Further, depending on the industry there might be reasons of system validations or regulations which forces you into another direction or to have a Hybrid. These days, the AND is more important than the OR, hence integration plays such an important role.

Choosing the right ERP system should be on the basis of the following: 1. The values offered by the ERP platform 2. Budget available against the price of the ERP system 3. Comparison of the cloud vs on-premise version 4. Support offers for the platform

Choose the right supplier and/or implementation partner. If your ERP supplier is much bigger (turnover, employees, etc.) than your company, then there is a risk that you are not taken seriously. If the supplier is much smaller than he might be squeezed by your governance, professionalism, standard operating procedures and more. Cultural fit is as important as functional and technical requirements.

There are multiple ways to approach this. Customisation of ERP can be a real game changer but one must approach this topic with care. There has to be a real business case or reason for selecting a COTS solution that one should customise. I wouldn’t worry much if there were cosmetic enhancements. If you must customise because your business is so unique then consider building a specific solution in-house and integrate. You would see real value in it. Again the driver should be customer experiences, employee experiences and productivity. In the longer run, higher adoption will offer real gains.

Optimize customization by utilizing existing configuration options. These settings allow adjustments to appearance, behavior, and functionality without altering the code. Configuration options, accessible through a GUI, facilitate changes in layout, user roles, workflows, and integration with other applications.

Previous to the project start is important to have some "mantras": 1. Use the standard as far as you can, any changes in the future over the standard will be more affordable than out of standard. 2. Out of standard requirements need to be Approved by a specific committee based in the value expected for the business. 3. And for point 1 & 2 try to create your model as simple as possible thinking in the evolution of the model and new things to add in the future.

A decis?o de escolher um ERP deve ser baseada na funcionalidade e adaptabilidade do sistema às necessidades da empresa. é fundamental considerar aspectos como o suporte e a flexibilidade oferecidos pelo desenvolvedor.

La adecuación de la configuración inicial depende de las necesidades , si bien tenemos ajustes generales dependemos del detalle de cada departamento y la interacción entre ellos para que la implemebtacion sea exitosa , no es necesario cubrir los.punyos no relevados siempre es mejor crecer de menos a mayor de lo general a lo particular y siempre pensando en un crecimiento ordenado de los procesos

La configuración estándar de un ERP ofrecen varios beneficios entre los cuales se encuentran: 1. Amplia funcionalidad: Los procesos estándar tienen una amplia funcionalidad que permite automatizar y simplificar muchos procesos empresariales. 2. Robustez: un ERP estándar es un producto muy probado por miles de usuarios, lo que lo convierte en un software libre de errores en comparación con un programa desarrollado a la medida para un propósito particular. 3. Coste y tiempo de implementación: Un ERP estándar puede ser una opción más rentable y rápida de implementar el ROI 4. Flujo de trabajo mejorado: los procesos estándar simplifican la operación y adopción a través de interfaces amigable, lo que permite mayor productividad de los usuarios.

I am passionate about this one. Ideally, it should happen ONLY when the process it supports makes you money and differentiates your company. If not, you're creating technical debt and spending the company's money where there's no ROI. Change the process instead. This is far easier said than done though.

Enhance ERP functionality using customization tools provided by the platform or third-party vendors. These tools enable the addition or modification of features, processes, and functions. While some tools may demand programming skills, they empower users to create custom reports, dashboards, and automations.

With my SAP Background, I see how BTP excels in customizing ERP. For instance, to create a custom report with data from S4HANA ERP and other sources, BTP's Data Sphere compiles and models this data. This can be further consumed in SAC for creating dashboards. If the standard S/4HANA workflow doesn't meet your needs, BTP's Process Automation can be used to develop or enhance workflows. For application integrations, BTP's Integration Suite offers tailored solutions. For complex enhancements, rather than building ZPrograms in ERP, BTP's toolkit supports full-stack app development integrated with S/4HANA. A key BTP benefit is maintaining S/4HANA's 'clean core', allowing customization without altering the core system.

It is always important that the user has the freedom to customize his ERP to a certain level, this will reduce the dependency on the implementing or support provider. Displaying fields on pages, organizing fields on a page, creating reports or designing reports, among other possibilities, will always be considered a benefit to the end user.

customization process involves understanding the business requirements in detail, formulating a customization plan, developing, testing, implementing, training, and bug-fixing activities. ERP customization can require immense time and cost depending on the scope of the changes and the business size.

For advanced customization or if lacking time/resources, consider professional assistance from ERP vendors, third-party consultants, or dedicated developers. Benefits include specialized skills, faster delivery, and ongoing support. However, be cautious of potential drawbacks such as higher costs and dependency on external parties.

Implementing an ERP might be experienced as open-heart surgery. We operate literally in the core/heart of the company. The impact of the change is great, long-lasting and should be done right from the first steps until the last. And working together with 3rd parties is an essential first step. Corporate blindness is more prevalent today than ever before. And don't take that first step just with parties that have a commercial interest in your change. Talk to industry colleagues, employees, branch organizations, even to friends working at other companies. And yes, also hire professional help to be supported and guided in this exciting change. That investment will return.

Next to hiring the right ERP professional, you should also be prepared to invest in business capabilities like business project management, process expertise, architectural roles. Process expertise should be built up internally to secure business continuity. Business project management can be hired just like ERP experts as this is a temporary role

I have never worked with a good ERP consultant but I am sure they are out there. If you do go that route be warned that anything that sounds too good to be true definitely is. It’s common sense but if a firm is coming in 50% lower than all the other bids you’re probably going to get a product that is half as good as their competitors.

Spend as much time in evaluating professional consultants/experts as you did in selecting the right ERP. The professionals should be good in understanding the business requirements; expertise in ERP but with no prior experience in tailoring to business needs can prove a disaster.

After customization, conduct rigorous testing to ensure functionality, performance, security, and usability. Employ various tests, including unit, integration, system, and user acceptance tests. Evaluate customization impact using key indicators like user satisfaction and productivity. Use feedback and data to identify and address issues, optimizing and improving customization over time.

Testing and evaluating ERP customizations is a critical phase in ensuring the effectiveness and reliability of the customized system. - Clearly outline the objectives of your testing process. - Use of any or all types like Unit Testing, Integration testing, System Testing, User Acceptance Testing - Prepare a Comprehensive Test cases to Include scenarios that cover various aspects of customization, from basic functionality to complex workflows - Ensure all aspects are tested including Performance, Security, Usability, Regression either manually or using Tools - Opt for Data migration related Testing and impact on KPIs defined for the customizations - Ensure Proper documentation is done before Production deployment

Por supuesto, disponer de entornos de desarrollo / prueba / producción resulta algo imprescindible para garantizar que las soluciones lleguen a los usuarios con un control de calidad técnico y funcional lo más elevado posible. Cuanto más invirtamos en verificación y pruebas mayor garantía tendremos para un despliegue cómodo y funcionalmente rico.

Testing is one of the most important phase to implement an system. Stress tests, volumetry, security, features, performance, governance, maintenance

Em várias implanta?oes que participei pude perceber que depois do Go Live o sistema se torna engessado para ajustes que só s?o perceptíveis pelos usuários no dia a dia. é fundamental que a consultoria responsável pela customiza??o e implanta??o ainda possa realizar melhorias e altera??es. Essas pequenas falhas muitas vezes desacreditam o ERP como um todo e dificultam a vida dos usuários.

One of the most important steps of the customization process not covered here is to document the custom solution. Document the requirements the solution addressed around what it was trying to solve. This should also include an overview of the solution and also a writeup of how it works covering any code or workflow configuration tools leveraged. If there is ever an issue with the customization, or additional changes needed then this document will be extremely helpful.

Further to the topics we have to add how the Customization is going to be maintained. Typically these Customizations has to be integrated with the Core ERP systems. For many cloud ERP solutions the Upgrades are automated and our customization should adapt to any changes. Documentation along with any Version control (or any Dev Ops Methodology) is highly critical during the support phase

A large part of any ERP implementation is keeping the project on track. Functional and techno-functional consultants need to be able to find the right people to staff the project, as well as delegate tasks and ensure those tasks stay on schedule. They also must be able to manage any third-party vendors as well as the internal team. This is particularly important during a cloud implementation; ERP consultants need to ensure service level agreements and goals are met, regardless of where the team is based.

Nee joh, lekker maatwerken want "wij zijn zo uniek in onze business, dat kan geen enkel ERP pakket bieden" ;) Bring it on, change management ??

ERP systems are vital for business efficiency and growth. Organizations must customize these systems to align with their unique processes and industry needs. Effective ERP customization requires a balanced approach between flexibility and best practices. Start by analyzing workflows and engaging key stakeholders to identify customization priorities. Implement a phased approach, beginning with core functionalities, to minimize operational disruptions. Collaborate with ERP vendors or consultants to ensure modifications adhere to best practices and maintain system stability. Adopting a strategic and collaborative approach enables organizations to tailor ERP systems for specific requirements while ensuring scalability and adaptability.