ERP & Custom Solutions
The reality of ERP implementations: why customization is essential
Enterprise Resource Planning (ERP) systems (think of them as the digital backbone) promise companies a comprehensive solution for their operational processes. From accounting and inventory management to HR and production planning, a well-implemented ERP can bring significant efficiency improvements.
However, many organizations face a crucial problem: no ERP system meets 100% of their specific needs.
The 80-20 Reality of ERP
In practice, a standard ERP solution typically covers only 80% of business processes. The remaining 20% includes company-specific processes that are not fully supported. This results in suboptimal workflows, inefficient workarounds, and often frustration among employees who have to adapt to a system that is not tailored to them.
A successful ERP implementation, therefore, requires more than just installation. It demands a strategic approach in which customization plays a crucial role.
The Hybrid Solution
To address the missing 20%, organizations can opt for additional custom software. This hybrid solution ensures that the system is open for further API integrations to fill in the gaps. This allows specific functionalities to be added without completely replacing the ERP system.
However, not all ERP systems allow for this flexibility. It is important to collaborate with partners who can enable this in the future.
Customization as a Growth Engine
Instead of rigid ERP solutions that need to be replaced every few years, organizations can also build on their existing systems step by step. This means creating bridges between different software solutions. Custom components are integrated where necessary, allowing your organization to continue growing year after year without requiring major system changes.
How to Determine if Your ERP Needs Customization
Ask yourself:
Does our ERP seamlessly align with all our processes?
How much time do employees spend on workarounds?
What specific functionalities are we missing in our current system?
Answering these questions will give you insight into the extent to which customization is needed to improve your operational efficiency.
Conclusion
ERP systems provide a solid foundation for many companies, but they rarely offer a perfect fit. By addressing the remaining 20% with custom software, organizations can optimize their operational processes without making compromises.
A strategic approach, where ERP and customization go hand in hand, results in a system that not only works but truly supports the company where it matters most.
