If you are searching for an ERP system that works for your business requirements, you will come across two terms- customization and configuration. Both have similar concepts with different purposes and meanings. The main difference is the time, cost, scope of work, and training to align the ERP system with the business requirements. This blog will take you further to understand the difference between customization and configuration in ERP implementation, its pros and cons, examples, and many more.
What is ERP Customization?
Customization is writing new codes such as programs, class files, and scripts within the software to meet business requirements. ERP systems are customized to add functionalities and business modules according to the specific needs of your business added to the standard version of an ERP. Customizations also include integrating third-party applications to enhance capabilities and deliver a solution.
The ERP customization process involves understanding the requirements of the business in detail, creating a customization plan, developing, testing, implementing, training, and bug-fixing. ERP customization needs a lot of cost and time according to the business size and changes in the business.
Some examples of ERP customization are-
- Development of data exports
- Business process automation
- Forms, menus, dashboard widgets, and product line addition
- Creation of functionalities to meet the current business modules
- Add or delete steps in a process
Pros of ERP Customization
- Offers the freedom to add new features and functionalities to an ERP product.
- Accommodate unique workflows and processes of the business.
- High-end flexibility is available to meet operational business requirements.
- ERP vendors can offer low-code customization to mitigate the customization disadvantages.
Cons of ERP Customization
- Require increased maintenance, support, and internal resources.
- There is a need for a skilled team with good ERP knowledge.
- The process can lead to implementation delays.
- Time and cost of development increase depending on the business size.
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What is ERP Configuration?
Configuration is the process of changes in the software’s default settings to meet the business’s specific needs without changing the source code. The ERP system’s components are considered to ensure that they function effectively within the business environment. These include settings such as time zone, language, currency, data analytics, and industry-specific workflows. The ERP configuration also lets the business select options for standard applications to function according to business needs.
The configuration process also allows the editing of fields, values, and other functionalities within the pre-loaded ERP software to focus on the business needs in the implementation process.
Some examples of ERP configuration are-
- Development of business intelligence
- Creating e-mail templates and dashboards
- Modification in system interfaces, properties, and reports to match business needs
- Setting security roles
- Change in labels for internal systems
Pros of ERP Configuration
- There is an improvement in software updates with ERP configuration.
- Perfect for small and medium business organizations.
- The ERP configuration process does not interfere with the software’s source code.
- ERP configuration is more cost-effective than the customization process.
Cons of ERP Configuration
- It does not allow the addition of new modules.
- The ERP configuration process cannot fulfill some of the central business requirements.
- No third-party integration with ERP configuration or customization is required.
Customization or Configuration of an ERP System
ERP customization and configuration depend on multiple factors such as the business size, industry type, budget, number of stakeholders, existing software, business processes, and sub-units. ERP configuration meets the needs of small and medium business enterprises and cannot handle the requirements of niche sectors. These industry segments require ERP customization to meet their specific business needs.
Things to Consider for ERP Customization or Configuration
Regardless of the business size, industry, and application, considerations for configuration and customization are universal. Here are some essential points to help you determine what business requires between ERP configuration and customization.
Business organizations change with the change in code customization. There is development of new code if the business has to start back. If future releases impact the code, identification of the base changes is there to develop a new code. And, with ERP configuration, the features can be activated or deactivated anytime easily.
ERP customization requires more time than the configuration process. If the ERP vendor handles the customization process, there is a reduction in time to build new functionalities. But, still, there is the time required for developing, testing, and training the staff.
ERP customization is a time-consuming process. They make the project over budget and also delay them. After the initial customization process, the ERP system needs more maintenance from the in-house team. Whereas. ERP configuration optimizes the software without any maintenance required from the IT department.
ERP configuration includes modification of the settings, features, and options in NetSuite. Customization involves altering the underlying code and creating new functionalities and features or modifying existing ones.
ERP customization requires more effort to maintain and upgrade when new versions of NetSuite are released. Whereas, ERP configuration focuses on standard functionalities and features that are easy to maintain and update.
Developing custom codes and interacting with external code needs expertise. Connecting with the right team to do the job is difficult if the ERP vendor has no experience in customization. And, for future projects, you have to hire the same team again. ERP configuration, on the other hand, is quicker and more straightforward. Anyone from the IT team can accomplish the configuration task.
If you want to connect with experienced developers to create custom codes for ERP implementation, meet the expert team from the leading apps development company in Bangalore and finish your task.
Business organizations must evaluate their needs and consider trade-offs between ERP configuration and customization in NetSuite. The combined configuration of standard processes, customization for unique requirements, and a balanced approach can lead to an effective NetSuite implementation.
How to Get the Most for Your ERP Solution?
After the completion of the ERP system configuration, you will require additional customization to integrate it according to your business needs. While most businesses require ERP configuration, some need both customization and configuration. Whichever process is essential will depend on the organization’s size, industry, business process, time constraints, and budget.
To know more about ERP NetSuite customization and configuration, contact one of the experts at Indglobal Digital Private Limited, the top ERP software development company in Bangalore. Our developers try to meet all the business’s expectations and offer the desired services to the clients according to their needs. Connect with us and fulfill your business needs.