Resources What is a customizable ERP system?

What is a customizable ERP system?

Every organization has unique business and operational requirements, but some have very specific technological needs. Hence, custom-built ERP software solutions are essential for growth.

Tailor-made ERP systems are essential within the evolving landscape of workflows. Additionally, many employees perceive that existing technological solutions fail to accommodate the shifting organizational objectives.

Unlike standard ERP solutions, customizable ERP systems address specific business challenges and adapt to changing goals. They include traditional modules like finance, accounting, sales, marketing, and inventory management while filling gaps to solve unique pain points that off-the-shelf ERP systems cannot.

AI and ML algorithms assist these solutions in complementing custom features, catering to different access levels, and providing users with real-time insights and reports. Most importantly, they are amenable to future tweaking as business goals and requirements evolve.

When should you opt for a flexible, customizable ERP system?

If your ERP system no longer meets your business’s operational needs or fails to support evolving goals. Look for signs such as inefficient processes, lack of integration, or outdated functionalities before upgrading for better performance.

The eight most prominent signs you need a customizable ERP solution include:

Why choose a customizable ERP?

The limitations of pre-built, off-the-shelf ERP software

No forced business flow alterations

Focus on agility and scalability

Perfect for niche businesses and industry verticals

Easier to integrate with third-party services

Access to smarter business insights

The limitations of pre-built, off-the-shelf ERP software

Off-the-shelf ERP solutions might allow minor changes, however, their primary design does not facilitate customization; they often have generic functionalities and modules, which are insufficient for those with niche requirements. Integrating them with third-party apps and plug-ins may result in fragmented data and security breaches. Finally, an ERP may be constrained by vendor dependency and limited upgrades and updates.

No forced business flow alterations

Traditional ERP solutions often require extensive training and drastic changes to an organization’s business flow, while customizable ERP solutions can be tailor-made to suit the unique business processes, needs, and requirements of every business. As a result, you gain access to customizable workflows and dedicated reports and processes. Other benefits include a reduced learning curve, productivity boost, and automation readiness.

Focus on agility and scalability

Customizable ERP solutions are specifically tailored to fit individual requirements, eliminating the need for unnecessary modules. This results in a more streamlined and efficient ERP system. Companies can scale their ERP capabilities based on business needs without being constrained by unwanted features.

Perfect for niche businesses and industry verticals

Niche businesses in industry verticals such as fashion, food and beverages (F&B), pharmaceuticals, manufacturing, etc., have unique workflows that necessitate customized ERP solutions. If we were to discuss workflows related to NGOs, governmental organizations, and consultancies, the needs would be diverse and non-generalizable. Customizable ERP solutions are built after a thorough evaluation and audit and will benefit the concerned organization the most.

Easier to integrate with third-party services

Customizable ERP gives businesses greater control over their development, allowing for informed decision-making regarding integrating existing third-party services to align with usage patterns and future requirements during the developmental phase to facilitate access to a diverse range of third-party solutions presently and in the future.

Access to smarter business insights

Business reports need to derive their insights from relevant and context-dependent data. A cookie-cutter approach toward insight generation may lead you to make inaccurate predictions. A custom-built ERP ensures that all business insights are accurate, up-to-date, and within the context of your business ecosystem.

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Feature	Customizable ERP	Off-the-Shelf ERP
Flexibility	Customizable ERP solutions offer significant flexibility in functionalities, features, UI, and service delivery.	Standard ERP systems have limited flexibility and a restricted scope for customization
Scalability	You can easily scale up or down, depending on changing business circumstances.	Scalable only to a certain extent. Expanding requires purchasing additional connectors or storage leading to higher costs and complexity.
Implementation	Requires a longer time to understand your needs, develop, test, and deploy.	Shorter implementation time if you choose to use the software “as is”.
Cost	Initial costs tend to be higher, but improved productivity, intuitive workflows, and tailored features result in long-term savings.	Off-the-shelf ERP systems have lower initial costs because they come with standard features. However they lack the flexibility and comprehensive capabilities required long-term.
Features & functionality	You get to choose what features the ERP is built with, based on your business requirements and industry trends.	Standard functionalities that meet general business requirements such as accounts, CRM, inventory management, sales and marketing, etc.
Competitive advantage	Gain a unique competitive advantage thanks to enhanced productivity and smoother workflows.	Generic features curtail scalability and performance, resulting in reduced competitive advantage.
Updates and maintenance	Updates and maintenance may require special intervention, resulting in additional expenses.	Vendor delivered updates and maintenance.
Best suited for	Niche businesses with specific workflows and organizations that seek better scalability and performance.	Businesses that seek to automate their basic operations in a cost-effective manner.

Best practices for implementing customizable ERP systems

Needs assessment

Develop a strategic plan

Choose the right ERP vendor

Data clean-up and migration

Phased implementation

User training

Needs assessment

Start with a basic assessment of your business needs and requirements. Based on the audit, you can identify gaps that need to be filled and areas for improvement.

Develop a strategic plan

Once you identify gaps and areas that require improvement, develop a strategic plan to improve existing workflows and future-proof your business against destabilizing trends in the future. Customizable ERP solutions can help you be prepared for eventualities

Choose the right ERP vendor

Remember to scout for vendors and select the one that aligns with your needs and business strategies. It’s crucial to choose a partner who will work with you from the initial stage of auditing and planning through to post-deployment support and maintenance.

Data clean-up and migration

Clean up existing data and make sure it is compatible with your new ERP system. Data cleansing helps remove duplicate entries, redundancies, and errors. Plan to migrate data to the newly built customizable ERP solution.

Phased implementation

Implementation should be done stage by stage. This allows you to test the waters before large-scale deployment. If any changes or further customisations need to be made, this is where it happens.

User training

After your customizable ERP is prepared for implementation, it’s crucial to train your staff. It’s recommended to provide on-the-job training to save time and ensure that your staff members have several opportunities to confirm that the ERP is ready.

Customizable ERP is the future

A template-based, traditional ERP can be severely limiting. Most businesses vary in their workflow and operations. With a focus on agility and scalability, smaller companies can set up the necessary modules and eliminate the rest while reducing the burden on their internal IT departments.
With smarter business insights and greater control over productivity, businesses can easily focus on driving growth and enhancing revenue. Customizable ERP solutions offer access to APIs and deliver the ability to integrate niche third-party solutions, allowing companies to easily add or remove niche features to their ERP solutions and have greater control over both development and implementation.

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What is a customizable ERP system?