Customization is one of the most controversial subjects regarding ERP software. The majority of ERP software purchasers have every intention of leveraging an out of the box software solution during their selection process, but as project teams get into the details of the software during the implementation cycle, requests to make customizations to the software are almost unavoidable.

Only about one quarter of organizations purchasing an ERP system implement an out of the box solution with little or no customization. The remainder customizes their software, with a third relying heavily on customizing the ERP software solution. According to research, large companies with over $500 million in annual revenue are even more likely to customize their ERP system, as are companies in the aerospace, defense, and government industry.

Defining Customization'

Configuration refers to the normal set-up of the system, such as parameters, fields, and workflows. These changes are a standard part of any implementation and do not require changes to the source code. Customization, on the other hand, usually requires changes to the source code and also demands a higher level of sophistication. In some situations, business requirements and objectives can be met via configuration and set-up instead of customization.

Customizing Disadvantages'

Customization can increase the complexity and risk of an implementation, while at the same time making it potentially more difficult to upgrade software in the future. It can also undermine best practices which may have been built into the software. Customizations are sometimes symptom of other problems, including a mismatch with business requirements or a lack of project controls during implementation.

Avoiding the Pitfalls of Over Customization'

Get everyone on board with a company-wide definition of business requirements. One of the main reasons for customization is lack of direction and definition regarding business requirements. If business requirements are ill-defined, it is more likely that a project team will make custom changes to the software to meet requirements as they are defined. In addition, clearly defined business requirements will ensure that a buyer chooses the best matched ERP system during the ERP software selection process. Utilize solid ERP system project controls. Without strong project controls and project governance, the project team is more likely to customize the items on the buyer’s wish list without prioritizing, rationalizing, or presenting potential solutions within the core functionality of the system. The executive steering committee and project manager need to clearly define criteria for potential customizations; sometimes even including a cost-benefit analysis of the customization to ensure that a buyer is only customizing where is provides them with a unique competitive advantage and especially when there is no viable solution within the ERP system itself.

A better Approach to Customization'

Another way to approach the customization controversy is to utilize an ERP system that minimizes or eliminates the poor outcomes usually associated with customization. There are companies which offer ERP software built in such as way that the client’s customizations and interfaces are stored in a separate layer from the business logic and programming layers. This means faster, easier customizations, and future modifications to the system can be executed with ease as well as providing updates to any underlying software applications. This type of system gives buyers and vendors more room to make customization changes without increasing the complexity and risk sometimes associated with ERP system customization.