When companies consider investing in an ERP (Enterprise Resource Planning) system, one word tends to dominate the conversation: customisation. The idea of tailoring software to perfectly suit your business sounds ideal. Who wouldn’t want a solution that feels like it was built specifically for them?

But customisation often comes with a hefty price tag and extended implementation timelines. This raises an important question: is ERP customisation truly worth the cost, or is it just a clever marketing strategy designed to upsell?

What Does ERP Customisation Mean?

Customisation in ERP systems refers to the process of modifying the software to better align with your business’s specific needs. This can include creating new features, tweaking workflows, or integrating third-party tools.

However, it’s essential to distinguish between customisation and configuration. Configuration involves adjusting existing settings in the ERP system to suit your needs (e.g., setting user roles or adding workflows). Customisation, on the other hand, involves altering the software’s code or structure—essentially rebuilding parts of it.

The Appeal of Customisation

There’s no denying the allure of customisation. Every business is unique, and off-the-shelf ERP systems don’t always check every box. Here’s why companies are drawn to the idea:

1. Business-Specific Needs: Customisation can address niche requirements that standard ERP systems may not accommodate. For example, a manufacturing company might need a specialised production tracking feature.
2. Competitive Advantage: A highly tailored ERP system can give businesses a unique edge, allowing them to streamline operations in ways their competitors can’t.
3. Improved User Adoption: Employees are more likely to embrace an ERP system if it feels intuitive and fits seamlessly into their daily workflows.

But Here’s the Catch: The Cost Factor

While customisation sounds great on paper, it often comes with significant trade-offs, especially in terms of cost.

1. Upfront Expenses: Customisation typically requires hiring specialised developers or consultants, which can drive up initial costs.
2. Ongoing Maintenance: Any customisation you implement will likely need regular updates and maintenance, especially as the ERP vendor releases software updates. These updates may cause conflicts with custom features, requiring further investment to fix.
3. Implementation Delays: Customising an ERP system takes time. The more changes you make, the longer it’ll take to deploy the system and the higher the risk of delays.

Is It Worth It? Let’s Weigh the Pros and Cons

To decide whether customisation is worth the cost, businesses need to carefully evaluate the benefits and drawbacks.

The Pros:

• Tailored Fit: A customised ERP system aligns closely with your unique business processes, reducing the need to adapt to generic workflows.
• Scalability: As your business grows, a customised system can be adjusted to accommodate new needs.
• Increased Efficiency: Customisation can eliminate redundant processes and improve operational efficiency.

The Cons:

• Budget Overruns: Customisation can quickly escalate beyond the initial budget, especially if the scope isn’t clearly defined.
• Vendor Dependency: Relying on customisations often ties you more closely to the vendor or developer who implemented them, making it harder to switch systems down the line.
• Complexity: The more customised your system, the harder it is to troubleshoot issues or train new employees.

When Does Customisation Make Sense?

Customisation isn’t always necessary or wise. Here’s when it might be worth the investment:

1. You Have Unique Industry Requirements: If your business operates in a highly specialised industry with unique needs (e.g., aviation, pharmaceuticals), off-the-shelf ERP systems may not cut it.
2. The ROI Justifies the Cost: If customisation will lead to significant time or cost savings in the long run, it might be worth the upfront investment.
3. You Plan for the Long Term: Customisation makes more sense for businesses with long-term growth goals that require scalable solutions.

Are Vendors Overselling Customisation?

While ERP customisation can be genuinely beneficial in some cases, indeed, vendors often oversell its necessity. Many modern ERP systems come with robust configuration options that can address most business needs without diving into costly customisations.

Before opting for customisation, ask yourself:

• Is there a workaround? Sometimes, adjusting your internal processes to align with the ERP system can be more cost-effective.
• Have I explored all configuration options? Fully utilising the system’s built-in features can save both time and money.
• What’s the real benefit? If the customisation doesn’t directly improve efficiency, cut costs, or enhance user experience, it may not be worth it.

The Bottom Line: Balance Is Key

ERP customisation isn’t inherently bad or a gimmick. It’s a tool that, when used appropriately, can provide immense value to businesses. However, it’s not always the right solution, and it’s certainly not a one-size-fits-all approach.

Before diving into customisation, businesses should thoroughly assess their needs, budget, and long-term goals. Often, a well-configured ERP system can meet most requirements without the added complexity and cost of customisation.

In the end, it’s about finding the right balance. Customisation is worth it when it genuinely adds value, but if it feels more like a “nice-to-have” than a necessity, it’s probably best to stick with the standard features.