Difference Between ERP Configuration & ERP Customization

“Change is the only constant”, and the “Manufacturing Sector”, with its significant revolutionary movements, has authenticated this beyond doubt. The undeniably eye-opening technological additions that have been incorporated in the past couple of years, transformed production lines for the better, made products largely reliant, and improved productivity too. All this in one fell swoop.

This briefs us that manufacturing is not only about creating products physically. The continuously progressing technological advancements eradicate the production barriers—facilitating the manufacturers in the long run. One such prime tool that gathers all the disparate processes of a business is an ERP system .

It’s a specifically designed comprehensive solution to cater to the multiple departments of a manufacturing company. But before adopting an ERP, one should be familiar with the two fundamental terms that are associated with the ERP system. Those terms are “Configuration” and “Customization”. People often misinterpret the two. They may sound similar but are poles apart.

Both the processes are pretty important for the businesses installing ERP software. Keep reading to know the point of difference.

First Step- Understanding ERP Configuration

It’s obvious that all companies are different. They work according to their industry type and norms. Hence, every enterprise runs on a different path with a specific set of operational processes. For that reason, ERP is not a one size fits all product. Every organization works differently following different business processes and hence, requires configuration to be done.

Configuration is the process of optimizing the basic fundamental functions of the ERP system to allow it to comfortably integrate with the existing system. In simple terms, it’s the practice of setting up the values of the default parameters of the system according to the business environment working in.

For instance, while connecting a printer to the computer, the system needs to know which type of printer is connected to ensure it is fully functional. Configuration could be of any type; hardware or software, or a combination of both.

What does ERP Configuration include?

Proper configuration is crucial to ensure accuracy. Failure in implementation might cost you high in the long run. It Includes:

1.?Company creation and setting up databases for transactions, training, and testing

2.?Creating a default email template for the clients

3.?Setting up preferred language, currency, and time zone

4.?Defining hierarchy and offering access control as per the assigned roles

5.?Setting up units of measurement

Step Two- Understanding ERP Customization

As mentioned earlier, manufacturing is a diversified sector. Every manufacturing organization has its own set of processes and hence, need are also different. Thus, to meet specific needs, getting some customization in the standard software or developing a customized solution is the way out.

ERP customization refers to the process of modifying the ERP system according to specific business requirements. This process facilitates accurate integration of the ERP software with your business—boosting the business processes. This practice requires a good command of coding skills as it works on the concept of creating new functionalities that are missing in the software but required for the business.?Mostly, the customizations are done by the vendor itself, for little tweaks, many ERPs provide tools, that enable the users to add new fields, generate customized reports, and do more, sans all the headache of coding.

What does ERP Customization Include?

Customizations are more challenging to install. It includes:

1.?Modifying the existing features as required

2.?Adding up new features & functionalities that were missing originally

3.?Including task management processes for better execution of the operations

4.?Enabling support for third-party applications

ERP Customization Optimizes Your Business-

The benefits and need for Enterprise Resource Planning (ERP) software not unknown to anyone these days. Irrespective of the industry type & size, streamlining and simplifying the intricate operational processes of a business to help gain maximum efficiency is the core ideology of an ERP.

But, as discussed, a generic ERP may not be able to perform some industry-specific operations that are crucial but unavailable. Hence, customization of ERP becomes essential. And, getting them done, even if it costs you more, ensures various advantages like:

1.?Offers an improved user interface with business specifications

2.?Helps resolve specific business issues

3.?Offers quick access to the business insights

4.?Quick and easy integration with the third-party services

Improves the level of control and hence the overall productivity

When should you customize it?

Now, the configuration is the foremost & unavoidable process for the successful implementation of the ERP system . But ERP customization isn’t something to be done necessarily or immediately. If you are able to perform day-to-day operations easily or been through some manageable workarounds and are achieving business goals easily, it’s no harm to avoid the customization.

Additionally, ERP customization demands costly implementation and a huge portion of time, which might delay your project. Adopting ERP customization could definitely add new feathers to your business but, that doesn’t mean embarking on it right after the ERP implementation.

Before adopting customization, performing a cost-benefit analysis and closely monitoring the scope and needs of the enterprise is a wise decision, because changes to your software can be made anytime in the future too as your business grows.

Final Words-

Having a clear understanding of the various ERP concepts before implementing one ensures better decisions and saves money. For flawless implementations and customized software solutions for your enterprise, visit here . Or get in touch with our team of experts today.