Importance of ERP Software Customization- Key Points to Consider
These days, every company, irrespective of its size and business model, faces many challenges due to increasing competition and changing expectations of customers. What makes the matter worse is the lack of accurate data related to customer behavior. Here a custom ERP solution can lend a helping hand. In this article, we will discuss the top ways a custom ERP software can benefit your business while assisting you to meet challenges efficiently.
Reasons Why You Should develop a Custom ERP System for Your Business
An Enterprise Resource Planning aka ERP system consists of various digital modules for business management. Simply put, an ERP system can provide an overview of all daily operations across different departments of your company using a set of modules. But, here it is fair to mention that there is no ideal ERP system for every company because of unique goals and needs. Here, custom ERP comes into the picture.
Here are three big reasons why your organization needs custom ERP solutions.
Many applications for different processes
Enterprises tend to use multiple applications at once for managing different processes every day. This practice not only takes more time for employees but also takes its toll on overall productivity. For example, one app stores the client’s data, and the other app takes care of the ordering process. This can create chaos in small and big companies alike. Business owners should go for custom ERP development to streamline various processes on a single platform.
Poor customer services
You need to keep the customer at the core of every operation ranging from production to storage and sales to delivery. However, it is cumbersome to keep different departments together for the company. Lack of collaboration and communication can lead to poor customer service, and as a result, your organization can get numerous negative reviews over the period.
No quick access to the corporate data
Tens of databases are stored in different places which makes access to essential data cumbersome for your employees. Your teams cannot get the necessary information quickly. ERP customization can change this situation as you can establish a robust structure to get the corporate data as and when necessary.
Benefits of Customized ERP Solutions for Your Business
Custom ERP software development is aimed at making the most of centralizing business processes. Here are some of the noteworthy business benefits of customized ERP solutions.
Custom ERP software makes data available for the top management and employees to offer total visibility. You can monitor the ordering process, manage supply chains and track production efficiently using the ERP solution.
Reduced Operational Costs
A custom-built ERP system can bring automation in repetitive tasks and save the efforts of employees. It can increase the efficiency and productivity of your workforce and reduce operational costs while increasing the flexibility of your business model.
A reputed custom ERP software development company focuses on adding all the necessary features in the bespoke solution. One such feature is real-time reporting of every business process across all the departments of your company.
An ERP system contributes to saving time and effort for your team in completing daily tasks. It can bring automation in tedious manual processes thereby enabling your team members to focus on core activities. As a result, their efficiency increases significantly.
While ensuring data security and enabling instant sharing, tailored ERP solutions can make companies highly scalable. As your business grows, you can easily manage processes with the help of customized ERP software.
Improved Customer Services
A custom ERP solution can assist your sales and marketing team to maintain spreadsheets containing the customer’s crucial data. It simplifies customer services and assists your employees to nurture customer connections.
Custom ERP software can enhance collaboration across different departments and streamline daily operations. You can track the workflow and remain assured that even remote employees function efficiently using the ERP solution.
Better Regulatory Compliance
Following regulations and compliance-related requirements are some of the biggest challenges for modern enterprises. With a custom ERP system, your company can keep accurate financial records for regular audits and keep up with regulatory compliance.
Effective Supply Chain Management
A customized ERP helps businesses deal with the movement of tangible products. Shorter lead periods, monitoring of warehouse activities, and other supply chain-related benefits can increase profitability and overall functioning.
Instant Data Access
Several custom ERP solutions can work well on mobile devices also. You can access the company’s data through a dedicated ERP application using your smartphone. It facilitates data access from anywhere and anytime for your company’s employees.
How ERP Customization Can Lead to Major Issues
If you want to leverage all the business benefits, it is crucial to close functional gaps between your business requirements and the ERP solution. This approach is known as customization. It is necessary for you to know some of the major issues related to ERP customization before implementing it.
ERP customization needs third-party products but this can cause problems because ERP customers have to get additional functionality from authorized partners or independent service providers instead of the maker of the ERP software. While implementing a customized ERP system, if any issue occurs, a third-party vendor or an official partner has to resolve it. However, it is fair to mention that if this solution is provided by independent developers, it can create many issues related to compatibility.
Along with this, you may need to pay an additional charge for adding a system for passing the company’s data to the ERP application and the third-party solution. Along with this, you may encounter data security-related issues as well. You can resolve all such issues with the help of an authorized ERP partner. An official partner also assists you to modify the ERP solution in line with the updates given by the original maker. You can easily upgrade your custom ERP system as and when necessary.
How to Manage ERP Customization
Your business can mitigate the risk while ensuring a good return of investment (ROI) by managing ERP customization properly. Here are four ways for managing the ERP customization process effectively.
Understand the Types of Customizations
Thanks to evolving technology and ever-changing needs of businesses globally, we have various ERP solutions available. Talking about the types of customizations, we can include UI, third-party software integration, modification of functionality, and add-ons or extensions.
Use cutting-edge Technologies and Tools
A custom ERP system can give your organization a competitive edge. The only condition is it should be capable of adopting advancements of emerging technologies. What's more, your ERP solution should be compatible with critical vendor updates so that it can remain up-to-date.
Assess the business value of ERP Customization
ERP software can drive growth of your business but it is essential to identify the right customizations. Businesses that only assess the short-term gains and fail to find out long-term viability can miss the benefits. Therefore, all customizations should be scrutinized properly before implementing.
Remove Unnecessary Customizations
This is one of the most important considerations for managing custom ERP. Any unwanted or redundant features or functionality can increase complexity of processes and make the ERP solution difficult for your employees. Therefore, it is better to remove any unnecessary modifications.
When Should You Customize ERP Software?
Gone are the days when manufacturers and distributors had to spend a lot of money implementing ERP software. Also, customizations in the existing ERP solutions brought budgetary overruns and increased complexity.
But now, things have completely changed. Advanced ERP solutions have agile functionality and high scalability to meet diverse requirements of manufacturing, distribution, and other industry sectors. A custom ERP solution is useful in simplifying business processes and bringing automation to repetitive tasks. However, you need to define the most suitable way for ERP customization.
A custom ERP solution can expand reporting capabilities and increase visibility to streamline processes. The management can make insightful decisions based on collected data and improve processes. Customization can address inefficiencies, performance glitches, and issues related to the scalability of an ERP solution. In brief, all you get is an improved version of an existing ERP system after proper customization.
ERP Customization in a System Implementation
Custom ERP solutions can improve business operations across the board. But, it is necessary to make a roadmap that contains process improvement opportunities before implementing an ERP system. In other words, ERP customization needs a systematic approach and some knowledge-sharing policies for successful implementation.
Model and reporting walkthroughs, team workshops, and detailed flow charts are helpful in sharing the data. You can also define and use KPIs to measure the outcome of an ERP system accurately. All these tactics are useful for implementing custom ERP software into your business system profitably.
Guide To Customizing ERP Software: Pros and Cons
An ERP system needs customization to some extent for making it ready for your enterprise. But, ERP customization has a few disadvantages and advantages. Let's see both of them in brief.
It can cause implementation issues- Customization of ERP solutions can disturb budgetary provisions for implementation and may remain unmanageable if not executed properly. This can be a big headache for any CEO, CTO or a project manager.
It can cause issues after implementation- It is necessary for a custom ERP solution that your employees embrace it completely. If your workforce tend to prefer old ERP system over the new one, then some issues
It can increase efficiency and update processes- Customized ERP software can improve productivity and free up employees to focus on core activities. Also, customization keeps the ERP solution up-to-date for meeting complex needs.
It can be a game changer for SMEs- A custom ERP solution can handle mundane tasks and save a lot of effort for your workforce. Small and mid-sized enterprises can scale with the help of a custom ERP.
Build your ERP customized software with Silver Touch
With hands-on experiences of implementing custom ERP solutions and developing add-ons to meet the requirements of different industry sectors in the best possible ways, Silver Touch can be your trusted ERP software partner. We help you leverage all the benefits of customized ERP software for your company. We can build a comprehensive ERP system that can integrate all data, resources, and processes of your organization into a single platform.
Our in-house team of ERP experts have the necessary skills to address your business requirements irrespective of the industry your company works in. At Silver Touch, we focus on quality and pay attention to every detail during the custom ERP development process.
Do You Know?
Adoption Rate of ERP Solutions
ERP solution gains ground swiftly in the corporate world. Here are some interesting stats that support the statement.
The ERP software market in the Asia Pacific region is expected to reach USD 26 billion by 2026
53 percent of businesses consider ERP and CRM as their priority investments
Adoption of ERP software in mid-sized businesses had grown at a CAGR of 8.27 percent from 2020
The global ERP software market is expected to reach USD 105.26 billion by 2022
A customized ERP solution can optimize basic functions of your business system to meet specific requirements of your company. You can get absolute control, total visibility, high scalability, cost-efficiency, and many other business benefits with the help of ERP customization. Altogether, custom ERP software can give your company a competitive edge over peers and contribute to transforming various processes digitally.
Talk with our ERP Consultant and Transform your Business to Achieve Business Goals
FAQs about ERP Customization
A company can customize ERP software modules through an official partner of the original ERP software developer. For example, if you need a customized SAP B1 solution, you should consult a reputed SAP Partner.
ERP customization refers to modifying the existing ERP solution on a macro scale so that it can meet specific requirements of your company.
When you want to bring agility and automate mundane processes while increasing scalability in the processes, it is better to customize your ERP software.
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