ERP Configuration vs. ERP Customization

Key Takeaways

ERP configuration and ERP customization are two different approaches to tailoring an enterprise resource planning (ERP) system.
ERP configuration involves adjusting settings and parameters within the ERP software to align with specific business needs, utilizing built-in features. It offers faster implementation, lower costs, and easier maintenance.
On the other hand, ERP customization involves modifying the ERP system's code or structure to introduce new or unique functionalities that cannot be achieved through configuration alone. It provides greater flexibility but can lead to increased implementation time, cost, and complexity.
The choice between ERP configuration and ERP customization depends on the business requirements and the balance between leveraging existing features and meeting specific needs. Data analytics can be utilized to facilitate workflow automation.

The Fundamentals of ERP Configuration

Custom ERP systems offer customized modules to pair with existing modules If you’re integrating an ERP system into your website, then two words you are likely to hear are configuration and customization. But what, exactly, do these terms mean, and is there a difference?

The main answer is yes, there is a difference. Here’s an overview of ERP configuration, ERP customization, and how ERP integration solutions can help your business.

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The Difference Between ERP Configuration and ERP Customization

ERP configuration and customization work in conjunction with one another, but there is a distinct difference between the two. That difference can mean a difference of $10k, $50K, or more than $200k.

ERP configuration deals with system components but not with your business process needs. Configuring your system components allows them to work within a given environment's constraints, which include languages, currencies, time zones, and more.

ERP customization, on the other hand, operates specifically to improve business requirements and processes. This can include adjusting views and screens, modifying industry-specific business workflows, changing what information is displayed for a given group, and much more.

ERP Configuration Is Essential

ERP vendors offer low-code customization during the implementation process

Configuring your ERP system is one of the most important parts of the process. This means changing the parameters that meet your business's financial, language, shipping, and customer-facing needs.

ERP configurations can recognize revenue by a certain set of specifications, like a geographical unit or product line. Most configurations survive existing software updates, while certain customizations may not. You may even have to deal with integration within an ERP portal.

ERP Customization Optimizes Your System

The ERP customization process can be as large a task as the company needs it to be.

While the ERP system must be configured before use, customization is optional—though it greatly enhances the business function of your ERP solution, converting it from a powerful piece of software to an integral part of your business processing.

ERP customization can include company-specific task management processes, expanding functionality with third-party software, and more. If you're seeking an experienced ERP configuration and customization company, speak to a Clarity consultant for advice on how we can help your company.

How Should I Decide Between ERP Systems?

The decision between ERP configuration and customization should be based on a careful analysis of your business requirements. Start by evaluating the available features and functionalities of the ERP system and comparing them to your specific needs. If the system can meet your requirements through configuration, it is generally the preferred choice due to its faster implementation and lower costs.

However, if you require unique or complex functionality that cannot be achieved through initial configuration alone, ERP customization may be necessary, up to and including a headless ERP configuration. Consider the implications of customization, such as increased implementation time, cost, and complexity, as well as future maintenance and upgrade challenges.

It's important to strike a balance between leveraging standard features and tailoring the system to your specific needs, such as niche industry segments. An ERP vendor can help you when you're considering customization vs configuration.

Clarity Can Help

Integrations and system components can have a huge impact on businesses. That's why it's important to have an expert team that can seamlessly integrate ERP—even data-sensitive healthcare ERP systems—and CRM software applications with your customer portal or eCommerce platform. We'll tackle your connections, whether it's BigCommerce/ERP, eCommerce/ERP, Shopify/ERP, or anything else.

We offer a complimentary discovery process, a no-pressure meeting where we'll help you choose ERP customization, configuration, and the ERP vendor that will work best for you. Get in touch today for the best ERP implementation available!

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FAQ

What is ERP configuration?

ERP configuration is the process of adjusting configuration settings and parameters within an enterprise resource planning (ERP) system to align with a business's specific needs and requirements.

It involves utilizing the built-in features and functionalities of the ERP software to customize the system according to the organization's processes, workflows, and desired outcomes.

Configuration allows businesses to tailor the entire ERP solution without making significant changes to the underlying code. By configuring ERP systems, businesses can optimize their operations, improve efficiency, and ensure that the software aligns seamlessly with their business processes.

What is ERP customization?

ERP customization refers to the process of modifying the code or structure of an enterprise resource planning (ERP) system to create new functionalities or alter existing features. It involves going beyond the standard settings and capabilities of the ERP software and making changes at a deeper level.

ERP customization allows businesses to adapt the ERP software to their unique requirements and implement specific functionalities that are not available through configuration alone. It typically requires programming or development skills to make modifications directly to the software's code.

Customization offers greater flexibility and the ability to address complex business processes that go beyond the out-of-the-box capabilities of the ERP software.

Is configuration or customization better for my business processes?

The choice between ERP customization and configuration depends on the specific needs and requirements of your business. Configuration is generally preferred as it leverages the current features and capabilities ERP systems, leading to faster implementation, lower costs, reduced complexity, and easier maintenance. It aligns the system with your business processes without making extensive changes to the underlying code.

However, if your business requires unique or complex functionality that cannot be achieved through configuration alone, customization may be necessary. Customization offers greater flexibility but may increase implementation time, cost, and complexity.

Careful evaluation of your business needs is crucial in determining the most suitable approach.

Can a configuration and customization ERP system be combined?

Yes, ERP customization and configuration can be combined. In fact, it is a common approach taken by businesses. They start with configuration to align ERP systems with their existing processes and workflows.

Once the system is configured, they may opt for ERP customization to add unique or specialized functionality that cannot be achieved through standard configuration alone.

This hybrid approach allows businesses to leverage the out-of-the-box features and capabilities of ERP systems while tailoring them to their specific needs. It provides a balance between standard functionality and custom enhancements, offering greater flexibility and adaptability to meet the business's requirements.

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