Friday, March 11, 2016

ERP Customization - An effects of ERP Customization Analysis

ERP is designed with huge investment and effort, to meet the global versatility of the businesses. An organization cited the need of ERP because, business requires flow of information and a mechanism which can coordinate all activities and resources to rejuvenate the business requirements.  
For business reengineering, organizations are adopting ERP. Customization has to follow the occurring business needs, without giving heed to the future scope of this transfiguring. EPR is best tailored to improve overall optimization of the business and its process.
Customization becomes a challenge sometimes because of ambiguity and unclear business requirements. Companies are looking for some ERP solutions which require No-Customization in ERP implementation. Practically, it sounds difficult, because as per the ERP reports, most of the ERP implementation in the existing system, has to go through at least minor customization.
Organization wants minimum of changes, whereas ERP implementation has to tailor changes to filter and fulfill the basic requirements of ERP System. 

This factor should be looked upon as to why most of the organizations are resistant to customization. The following factors contribute to this fact:
1.ERP customization during deployment :Most organizations have an assumption of ERP failures, resulting in over-customization instead of Customization of ERP systems, which may lead to ‘over costing’ , ‘difficult management ‘ and  ‘employees resistant to change’.  Therefore, organizations are reluctant to rely easily on any
alteration. Rather, they prefer to rely on well-proven, time-tested system.
2.ERP customization after implementation  : Enhancement becomes difficult as the code often required to be rewritten in support of newer versions (of the software), which often leads organizations to defer improvements.
3.Unable to resolve 100% organizational needs : The main challenge is, irrespective of the refine implementation of the ERP, it is not going to resolve 100% organizational need: Therefore,  ERP systems may generate a strategic disadvantage  .
4.ERP systems may lead to lots of reformation to organizational issues:  Every ERP deployment contributes to fairly significant organizational remolding and reshaping to the existing processes and functions. Such transfiguring needs to be addressed.
ERP implementation should be business driven. Any tailoring in the system should not make business difficult to adapt. 

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