Company processes are usually very specific and individual. In order to be competitive, it is also important to constantly optimize processes. When introducing ERP, the following questions then arise: Does the ERP already map the entirety of the company processes as standard? Do or can and should the company processes be adapted to the software or vice versa? - A standard ERP usually consists of a whole range of functions and modules that are the result of many years of best practice processes. For many industries, the standard functions of ERP systems are extended and supplemented with industry-specific functions. In this way, some important functions for the industry can already be supplied. However, even industry ERP systems are standard ERP solutions that cannot fully map all the individual processes of the respective company.

When introducing ERP, the existing master data must of course be imported, the corporate design implemented, localization carried out and existing individual solutions either connected via interfaces or the existing data from these individual solutions transferred. The question of customization is therefore less about 'whether' and more about
the 'how' and to what extent. ERPs should have a certain degree of adaptability or flexibility so that the software can not only be adapted to the existing business processes, but can also meet new market requirements in the future.

However, not every form of adaptation or customizing is equally preferable. The introduction of the ERP should therefore be preceded by a critical examination of all business processes, so that an operational process may also be changed and adapted to the new ERP system and not vice versa.

The parameterization

Virtually every ERP includes parameters for mapping specific business requirements. However, some ERPs have only limited customization options, while others include a wide range of parameters and can therefore be adapted quite individually. The advantage of this form of customization is that the actual program code of the ERP system is not changed. The system remains update-capable. A disadvantage of parameterization is if there are too many parameters that can be activated or deactivated. In this case, activating or deactivating certain individual settings may create interdependencies that affect functionality.

The coding

Additional tools are used here without changing the ERP system. The advantage is that no changes are made to the core system. The standard ERP is still release-capable. Missing processes or functions are supplemented by additional programs or add-ons.

The coding

The advantage of customization programming or coding lies in the exact mapping of your own company processes. As a rule, however, development takes considerably longer and the ERP is therefore used much later and is also more expensive than a standard ERP - both in the creation of the code and later in the maintenance of the system.

Another disadvantage of coding is the loss of 'simple' update capability. The customized code has to be taken back with each update or adapted separately. For this reason, updates are often neglected and not carried out for modified ERP systems, meaning that the system becomes outdated and may have security gaps.

So if code adjustments are to be made in the ERP, it is always advisable to ensure that the code is well documented. Later updates and adjustments can then be made more easily.

Adaptation is the rule

Customization of the ERP system is the rule. However, the scope of these customizations can vary greatly. The various customizing options each have advantages and disadvantages that each company must weigh up individually when introducing an ERP system. In general, however, it is an advantage if the simple update capability of the ERP is retained.

The customization options of ERP systems are increasingly becoming a competitive factor for companies. With an ERP system that can be adapted to process changes as efficiently as possible, it is possible to react more quickly to market changes. It can therefore be advantageous to select an ERP that already has an appropriate customizing tool so that certain adjustments - database extensions, program jumps, form adjustments - can be made more quickly and efficiently.

Author:
Dr. Ute Burghardi is responsible for content on current software topics at SoftGuide.