The Inside Track of ERP System Customization and Implementation

Picking the right ERP system isn’t a game of blindfolded darts. You have to know what you’re about to commit to. Because once you tie the knot, you and your business are locked in.

You begin the long journey of integrating and training. Everything your business does and needs becomes intricately woven into your new ERP system.

There are longer lists of considerations out there, but this one zeros in on two major issues.

Each is in the form of a question business leaders like you have to answer before pulling the proverbial trigger. And you’ll find them insightful and valuable.

You’ll also get a holistic take on how to address each question. By the end of this reading, you’ll be one giant step closer to picking the right platform for your business.

Will an ERP system meet my specific business needs?

Business leaders want guarantees, or at best, strong assurances that the ERP system they adopt is the right fit for their business. It has to align with unique requirements and supports core processes.

As you think of what your checklist should look like, consider the difference between customization and configuration.

Customization involves extensive coding modifications, while configuration adjusts settings within the system without altering the source code.

And this is a big deal. Your choice will influence how easily your business and people adopt an ERP system.

A Word on Complexity

Customizing an ERP system can offer improved efficiency and better alignment with business processes.

But increased complexity is often attached at the waist to compatibility issues with future updates, and higher operational costs.

To strike a balance of sorts, document and identify industry best practices that serve your business.

Scrutinize customizations that address specific business needs and that you can tie back to demonstrated value.

Be Clinical

And if you opt for customization, document as you go. Tracking all customization-related activities will help maintain the integrity of your ERP system as your business evolves.

As your business evolves, use your documentation. Review it regularly and retire customizations that no longer provide value.

Removing or disabling unnecessary customizations reduces complexity and potential impact on your ERP system and your operation.

But practice this part with caution. Consider the isolated nature of a customization and its impact on the overall system before removing it completely.

If you’re looking for a smarter and easier way to manage customizations, consider ERP systems that offer built-in abstraction layers — layers with separate customizations from the underlying code.

They allow easier management and maintenance of customizations while preserving system stability and compatibility with future updates.

What are the implementation challenges and how can they be overcome?

There’s no avoiding the impact of integrating a new ERP system, but you can limit how doing so affects business as normal.

Here’s how you can make the switch without bringing your operation to a grinding halt:

Prepare for Service Disruption

Process and system changes can slow down everything and create bottlenecks. Bring all stakeholders to the table and open a clear company-wide communications channel.

Making people at all levels of your organization aware of what lies ahead and accepting contingency plans will help. You’ll find it easier to address issues as they arise and shorten your implementation period.

Track Your Budget

ERP rollouts often run over budget. Avoid this trap. Commit to comprehensive pre-implementation planning, limit changes to the original plan, and develop a realistic project plan from the start.

Prepare for Data Integration and Migration 

Consolidating data from multiple systems and ensuring data quality can get messy.

Before you set out to integrate and migrate your data, know exactly what you’re dealing with.

Conduct thorough analysis of existing data sources, clean and consolidate data, and test it all for compatibility with the new ERP system.

Create a Change Management Plan

Rolling out an ERP system changes processes and challenges culture, both of which cause resistance. Create a change management plan and use it as your North Star.

The right change management strategy should strike two chords. It should account for tailoring an ERP solution to support how your team works and champion clear communication.

As you can tell, this is all about people. Involve yours at the start and you’ll experience less aversion towards your new ERP system.

Project Manage It All

Establish a dedicated project team to manage your rollout. They must have the responsibility of planning meticulously and setting realistic expectations and milestones.

And at the risk of belaboring this point: ensure effective communication at all levels.

Without it, you’ll run into heaps of problems that can easily be done away with by establishing the right communication channels.

Train Your People

Your ERP solution is only effective if it’s used to its fullest potential. And to reap the value of your investment, you’ll need to invest in training your people.

Go all in. Be comprehensive. Create material tailored to the ERP system’s configuration and create training materials specific to the organization’s needs.

Have quick guides, videos, and an online knowledge base that’s easily accessible for everyone. And when updates take place, follow through with training to support each update.

Committing to training and ongoing support to drive user adoption will motivate user buy-in.

Get One Step Closer to Perfect

Dig into these ideas. Tweak them. Make them your own. As much as each business is unique, none is riddled with challenges that cannot be overcome.

When you’re able to address your unique challenges, that’s when the landscape changes.

And there are very few things in business that rival a well-oiled operation. With the right ERP system and a trained workforce, you can tip the scales in your favor.

You can gain significant competitive advantage — without sacrificing any part of your operation.