ERP software is a potent tool to help you streamline your business processes, integrate your data, and obtain a competitive advantage in your industry. However, only some ERP systems will meet your specific requirements and objectives. At OTOOL, we know it may be necessary to customise your ERP system to add functionality, features, or integrations not included in the standard software.

But what does customisation actually entail? How does it differ from configuration or customisation, respectively? What are the advantages and disadvantages of customising your ERP system? OTOOL will answer these concerns and assist you in determining if customisation is the best option for you, considering your needs.

What is ERP Configuration?

ERP customisation refers to the modifications made to the software solution's original source code. This is done to add specific functionality and features that your business requires. Customisation of the software is possible without compromising the original functionality.

Customisation is distinct from configuration and personalisation, which modify the default settings of your out-of-the-box ERP software. 

Configuration entails selecting from a list or menu of predefined options, such as access control, custom fields, and preferable units of measurement. Personalisation entails aesthetic and design modifications based on user preferences, such as rearranging the order or label of form fields.

Typically, configuration and personalisation are performed prior to or during implementation and do not necessitate changes to the ERP's underlying architecture. Customisation, on the other hand, typically involves extensive coding changes and technical skills. Customisation may be more labour-intensive and intricate, but OTOOL's team exists to guide and support you during this critical ERP implementation step.

In what circumstances does it make sense to customise an ERP?

There are numerous circumstances in which customising an ERP system may be advantageous for your business.

• You have specialised business processes or requirements that the standard ERP software does not support. For instance, you may need to integrate with a third-party software that is incompatible with your ERP system, or you may need to introduce new features or functionality that are not supported by the ERP system you possess already.
• You seek a competitive advantage in your industry by distinguishing yourself from competitors. For instance, you may wish to create a user interface that reflects your brand's identity, or you may wish to improve your customer service or product quality by adding custom features or functionality to your ERP system.
• You desire to increase your efficacy and output by automating or optimising your business processes. For instance, you may wish to reduce manual data entry or errors by developing custom workflows or validations, or you may wish to enhance your reporting or analysis capabilities by developing custom dashboards or reports.

What are the advantages and disadvantages of tailoring an ERP system?

Customising an ERP system has both benefits and drawbacks. Here are some examples:

Benefits:

• You have complete authority over your product. You can tailor your ERP system to your exact specifications and requirements, utilising only the features that are essential to your business and industry.
• You attain adaptability. You can modify your ERP system to accommodate new requirements and changes to your business environment. Additionally, you can update or modify your customisations as necessary.
• You achieve a competitive edge. You can develop a distinctive and differentiated product that exceeds your consumers' expectations and helps you stand out from the competition.

Drawbacks:

• You incur greater expenses and hazards. Customising an ERP system requires additional time, money, and resources compared to standard software. It entails more complex and technical obstacles, which may result in errors, flaws, or compatibility problems.
• You jeopardise the long-term viability of your system. Customising an ERP system could render it incompatible with future software updates from the vendor, which could have negative effects on its functionality, security, or performance. It may also make future migration to a new system or platform more difficult.
• You lose support and warranty from the vendor. Customising an ERP system may void the terms of your vendor's support and warranty, requiring you to rely on your own IT staff or third-party developers for maintenance and troubleshooting.

At OTOOL we act with honesty, transparency and responsibility. We know that ERP solutions may have drawbacks. And as entrepreneurs, we have found that implementing an ERP could be expensive, complicated and counterproductive. So, we have decided to mitigate this risk by offering a solution that is simple, efficient, stable and bug-free!

How Do You Choose Between Altering a Business Process and Customising Software?

Given the advantages and disadvantages of customising an ERP system, how do you determine whether or not it is worthwhile? Comparing the costs and benefits of changing a business process versus customising the software is one method to approach this choice.

Changing a business process means adapting your existing workflows, procedures, or policies to suit the standard ERP software. This may necessitate retraining your employees, redesigning your documents or forms, or eliminating certain procedures or activities. Altering a business process may have the following benefits and drawbacks:

Benefits:

• You save money and time. Changing a business process is typically quicker and less expensive than modifying software. You need not employ developers, test the code, or maintain the customisations.
• You ensure support and compatibility. Changing a business process has no effect on the architecture or functionality of the ERP system. You can still receive updates, upgrades, and support services from the vendor.
• You adhere to the finest practices. Changing a business process could help you align with the embedded industry standards and best practices in the ERP system. Improve your efficiency, quality, or compliance with proven methods.

Drawbacks:

• You sacrifice differentiation and adaptability. Changing a business process could result in losing a competitive advantage or distinct selling proposition. You may also restrict your ability to adapt to shifting consumer demands and market conditions.
• You encounter opposition and disruption. Your employees, customers, or business partners who are accustomed to the old business process may oppose the implementation of the new one. You may also experience operational or performance disruptions during the transition period.
• You make functionality and feature concessions. Changing a business process could necessitate sacrificing functionality or features that are vital to achieving business objectives or ensuring customer satisfaction. You may be forced to compromise for suboptimal solutions.

Clearly, there is no definitive answer to the question of whether you should modify a business process or customise software. It depends on numerous variables, including the scope and characteristics of your business processes, the standard ERP software's availability and applicability, the costs and advantages of customisation versus change, the effect on your clients, employees, and business associate, and more importantly the alignement and concordance with your strategic objectives

What will finally guide your choice?

Before deciding on either option, you must conduct a comprehensive analysis of your current situation and your long-term objectives. Additionally, you should consult with your stakeholders, vendors, customers, employees to learn their perspectives and expectations. OTOOL is also here to guide you in this introspective and strategic step.

Customising your ERP system may also affect its performance, compatibility, and support by altering its code. It has advantages (functionality, features, differentiation, flexibility) and disadvantages (costs, risks, deviation from best practises, and diminished vendor support). Before customising your ERP system, you should evaluate whether altering your business processes is preferable to customising the software. OTOOL can help you to assess your current situation and desired outcomes.

The decision to customise your ERP system is determined by your requirements and objectives. Choose what corresponds with your goals and benefits your customers. Don't be afraid to customise your ERP system if the standard software cannot satisfy your business's specific requirements and if the benefits outweigh the disadvantages. OTOOL promote an open-source solution that is simple, efficient, stable, bug-free,  scalable, friendly and cost-effective,!

Ultimately, making a well-informed decision about the path to pursue is primordial. Understanding, agility and patience are essential to any critical decision around an ERP project. OTOOL possess the skills, creativity and experience to give you a solution completely tailored to your needs and included a full life-cycle support and more. 

OTOOL TEAM