Understand why and when to customize ERP (Enterprise Resource Planning) to make it a competitive advantage for your business.

Enterprise Resource Planning (ERP) is one of the tools most adopted today by companies of different sizes and segments. But, contrary to what a large part of the market still thinks, it is no use simply just to invest in technology.

It is essential to understand the specific needs and current reality of the company to understand when and why to customize the ERP.

What is ERP?

ERP means “Enterprise Resource Planning,” a concept also known as Business Management System.

In practice, ERP works as a software that automates and validates manual operations and assists in the company's internal processes in an integrated manner. One of its most interesting precepts is to do this on a single platform, ensuring that the information is safe and stored in its database.

With this, users are able to analyze data in real time and measure which information is relevant to the business routine. In other words, it can be said that ERP improves productivity and decision-making by managers, as well as reduces operational errors and facilitates the use of reliable data.

What are the advantages in customizing the ERP?

With all this in mind, it's time to understand why it is not enough to invest in software, but to adopt its use strategically. And there's no way to do that without weighing the pros and cons of ERP customization practice.

Ideally, the software could meet 100% of managers' needs without customization, but in many cases it is necessary - even if it is not a desired decision. Everything will depend on the management system adopted by the organization, on how its internal processes are organized, and customization often arises as a result of requirements related to governmental legal requirements.

Usually, companies that opt for customization are looking for a tool that meets the specific needs of the business and is not used just as another technology to improve results.

Other benefits of ERP customization are:

• Meet company needs

  This first topic is the most important. This is because one of the main problems of using ERP in a “standard” way are the limitations with which employees will have to use the system.

  Among the most common problems, we can mention the absence of fields for specific information, which generates rework for the use of complementary software and even resorting to traditional resources, such as Excel spreadsheets and printed paperwork.

  It's a classic example of how using standard ERP does not help productivity in the work environment and causes the benefits of this software not to be fully exploited. With customization, the company can create fields and processes that meet the needs of each sector with precision, avoiding a scenario like the example above.

  With this, the necessary queries and research - as well as the inclusion of documents and the processing of reports - can be done only in the software. Another important point is that it is also possible to exclude what is not necessary for that type of business, making it easier for employees to use without having to face obsolete features.

• Easy integration with other systems

  Another interesting point in ERP customization is the possibility of integrating the system with other systems, software, and platforms that teams use - something that complements the previous topic, if this is a company need.

  From this integration, management becomes automated and facilitates the exchange of information between systems, which guarantees greater security and veracity to the stored data and minimizes operational errors that may arise as a result of data manipulation.

• Addition of internal processes and protocols

  If the goal is to customize, another advantage of using ERP is allowing the company to include specific processes and protocols in the system, such as access rules and data authentication systems.

  This is an important advantage, as the company may have specific rules and a solid policy of good practices that cannot be jeopardized by the adoption of the technology. With customization, managers reinforce their commitment to the organizational culture for employees.

• Easier adaptation in the use of the system

  As intuitive as software is, we know that you don't learn to use it instantly. However, a customized ERP can be synonymous with easier adaptation, since its characteristics are very similar to the activities that are already part of the company's routine.

  In this way, teams learn to use the ERP faster, make fewer mistakes and produce more - compared to using the standard version of the system.

Are there downsides to ERP customization?

There is no denying that the adequacy of the software requires financial investment, which represents a high cost depending on the size of the business. Therefore, many entrepreneurs see this as the major disadvantage of ERP customization - especially when there is no guarantee of return on investment.

Another important point about customization is that it will become an “extra project” for the IT team. If deadlines are not met, adaptation can soon become a problem for the company, which does not enjoy the promised benefits and still has to bear the costs related to implementation and the working hours of the employees involved.

Finally, depending on the customization performed, the company often fails to take advantage of new features that would be made available in the periodic updates of the ERP.

In this scenario, there is still time to train the team that will use the system - an impediment to productivity, depending on the extent of customization and what changes will be made.

Therefore, it is essential that customization considers the usability elements of the ERP, making its use intuitive so that the impact on the company's operation is positive and not something that delays the projects in progress.

In addition, having a consultancy specializing in the ERP used, and in the company's business processes, is essential to have a correct assessment of which are the points in the process that demand a real need for customization in the ERP, so that the customization project in question fully reach your goal, add more value to the customized product, demand less time from the internal IT team and still have a lower cost than it would have if the project were carried out by the internal IT team or by consulting without the proper know-how.

Ready to invest in ERP customization?

Focused on promoting effective solutions to support business management, Go On Associated is the ideal strategic partner for the management of your company!

We develop interfaces for the exchange of ERP information, system customization according to the details mapped in each process, and adaptations for companies that already use the system and want to expand their business with technology.

One of the company's commitments is to assist managers in this decision making, to deliver the best solution according to what is really needed.

If you want to enjoy the features and advantages of an efficient management system, with security and commitment in all segments, count on Go On.