ERP Customization: Pros, Cons, and How to Manage It

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    Did you know that over 20% of businesses heavily customize their ERP software? This is to fit their unique needs and processes. ERP customization is key in today's business world. It helps companies run better and work more efficiently.

    ERP customization has pros and cons. The pros include smoother workflows, user interfaces that fit your needs, and better rule compliance. However, there are downsides, like higher costs and longer setup times. So, how do you make ERP customization work well for your business?

    This guide covers all you need to know about ERP customization. It gives you tips on how to use it to your advantage. If you're considering customizing your ERP or already have one, this article will help you better understand ERP customization.

    Keep reading to learn about the ups and downs of ERP customization.

    What is ERP Software?

    ERP software stands for Enterprise Resource Planning. It's a system that brings together different parts of a business. This includes finance, human resources, and more. It helps companies manage their resources better and understand their operations.

    This software makes it easier for businesses to automate tasks and track sales. It gives a clear view of all the data. This helps in making better decisions and increases efficiency.

    ERP software is the central hub for all business tasks. It combines different systems into one, reducing errors and increasing productivity. This leads to smoother operations and better performance across departments.

    Top ERP software also includes tools like CRM and BI. These tools help businesses understand customer behavior and make smart, data-based decisions.

    In short, ERP software is a key tool for businesses. It helps manage and automate various business tasks. It supports efficient data management and decision-making, leading to success for the organization.

    What is ERP Customization?

    ERP customization means changing an ERP software to fit a business's specific needs. It involves tweaking the system's features, user interfaces, and how things work together. This way, businesses can make the ERP software work just right for their unique processes and needs.

    Customization can add new features, change existing ones, and connect with other apps. It helps businesses use the ERP software in a way that suits them best.

    Benefits of Customizing Your ERP Software

    Customizing your ERP software brings many benefits that can boost your business. It lets you tailor the system to fit your specific needs. This means you can smoother workflows, improve users' experience of the system, automate tasks, and get features for your industry.

    Streamlined Workflows

    Customizing your ERP software helps you make your processes better and cut out steps you don't need. Automating repetitive tasks allows you to work more efficiently and make fewer mistakes. This saves you time and money.

    Personalized User Interfaces

    Customized ERP software gives you user interfaces that fit your employees' needs. This makes the system easier to use, so your employees will work better and faster. They can set up their dashboards and menus to quickly see the info they need.

    Custom Dashboards and KPIs

    Custom dashboards and KPIs give you real-time insights into how your business is doing. Making these features your own helps you track the important metrics for your business. This helps you make better decisions and plan for the future.

    Automated Repetitive Tasks

    Customizing your ERP software lets you automate tasks like data entry or report creation. This reduces manual work and mistakes and gives your employees more time to focus on important tasks.

    Industry-Specific Functionalities

    ERP systems might not always have features for your industry right out of the box. Customizing your ERP enables you to add features that solve your industry's unique problems. This makes sure your system works perfectly with your business.

    Seamless Third-Party App Integration

    Your business might use different apps from outside to manage different parts of its operations. Customizing your ERP software makes it easy to work with these apps, which means better data sharing and more functionality across your business.

    Improved Compliance with Regulations

    Following rules and standards is key for businesses today. Customizing your ERP software lets you add the right features and controls for your industry, ensuring you meet all legal and regulatory requirements.

    Tailored Access Controls

    With a customized ERP system, you can control who sees what data and can do what. This makes your system more secure and protects your business from unauthorized access and data breaches.

    Adaptation to Evolving Business Needs

    Businesses change and grow over time. Customizing your ERP software means you can easily change it to fit new products, services, or workflows. This lets you grow your business and stay competitive in a changing market.

    Improved Customer Service Features

    Happy customers are important for businesses. Customizing your ERP software helps you improve your customer service, such as tracking orders or providing personalized experiences. This builds stronger customer relationships and helps your business perform better.

    benefits of erp customization

    Disadvantages of Customizing Your ERP Software

    Customizing your ERP software has its downsides. Knowing these challenges is key before you decide to customize your ERP system. The main downsides of ERP customization are:

    Potential Increased Costs

    Customizing ERP software can lead to higher costs. You'll need more resources and expertise for development and maintenance. This can make your organization spend more money.

    Longer Implementation Time

    Custom ERP software takes longer to implement than standard solutions. Tailoring the system to your business needs requires more time. You'll need to design, develop, test, and deploy it.

    Complex Maintenance

    Keeping customized ERP software running smoothly is hard. Updates and patches might need changes to your customizations. This makes maintenance tough and requires skilled people who know ERP systems and customizations.

    Potential for Bugs and Issues

    Adding custom code can bring bugs and issues to your ERP software. These problems can come from compatibility issues, code mistakes, or unexpected customization effects. This can hurt system stability and performance.

    Vendor Lock-in

    Customizations can make it hard to switch ERP vendors. Being tied to specific custom features makes moving to another ERP system hard in the future.

    Scalability Challenges

    Customizations can make it hard to scale your ERP system as your business grows. They might not adapt or grow well, making it difficult to expand your ERP system efficiently.

    Resource Intensive

    Customizing ERP software requires more resources, including time, effort, and expertise. It can be a big job and dedicated IT staff or outside consultants might be needed to handle and support it.

    Risk of Obsolescence

    Custom features in your ERP software can become outdated. Your custom parts might not meet current needs as technology and business change. This could mean needing more customizations or facing system limits.

    Training and Change Management

    Adding ERP customizations means you'll need to train users. They need to learn about the new features and how to use them, which can add to the training and help users adopt the changes.

    Complex Upgrades

    Upgrading customized ERP software is complex. You have to check if new versions work with your customizations. This can make upgrades risky and add more complexity to your ERP system.

    disadvantages of erp customization

    How to Start with ERP Customization

    To begin with ERP customization, follow these steps:

    Familiarize Yourself with the Different Types of ERP Customizations

    First, learn about the different ERP customizations. These include functional changes that tailor the software to your business needs, UI customizations that make the system easier to use, and integration customizations that connect the ERP with other systems for better data flow.

    User Interface

    The user interface (UI) is how users interact with the system. It includes elements like buttons, menus, and icons. A good UI is easy to use and helps users complete tasks quickly.

    Documents and Forms

    Documents and forms are essential for business transactions and record-keeping. They include order confirmations, invoices, and delivery notes, among others. The layout and format should be clear and professional to ensure all necessary information is communicated effectively.


    Integrations connect the ERP system with other third-party software. These can include tools for accounting, customer relationship management (CRM), and other specialized functions. Integrations ensure that different systems work well together, helping streamline workflows and improve efficiency.

    Functionality Modifications and Extensions

    Functionality modifications involve changing the system’s source code to add new features. Extensions improve existing functionality to better meet user needs. These changes can improve the system's performance and adapt it to specific business requirements.

    Leverage Modern Technologies with Integrated Abstraction Layers

    Use modern tech with integrated abstraction layers for ERP customization. These layers make it easier to add new features without affecting the core code. This approach helps speed up customizations, reduce development time, and keep up with updates.

    Maintain Customizations to Ensure Enduring Business Value

    Customizations are not just a one-time task. They need ongoing work to keep their value. Regular checks and updates help ensure they meet current business needs. It's key to keep customizations up-to-date to support your business goals and keep operations running smoothly.

    Streamline Your ERP System by Removing Obsolete Customizations

    Some customizations might become outdated over time. For this reason, it's crucial to regularly check and streamline your ERP by removing what's no longer needed. This simplifies your ERP, cuts down on upkeep, and improves performance.

    Build Your Custom ERP Software with Kohezion

    Build Your Custom ERP Software with Kohezion

    Building your custom ERP software with Kohezion is simple and effective. Kohezion offers a user-friendly platform that allows you to create and tailor your ERP system to fit your business needs. You can easily modify features, integrate third-party tools, and design a user interface that works best for you. 

    With Kohezion, you gain control over your business processes, improve efficiency, and ensure all your data is organized and accessible. Start customizing your ERP software today with Kohezion and watch your business thrive.


    ERP customization brings many benefits and challenges for businesses. It lets companies make their ERP software fit their unique needs. This leads to smoother workflows, user interfaces that feel like home, and better compliance with laws. Customization also means easier integration with other apps and better service for customers.

    However, there are downsides to ERP customization, too. It can cost more, take longer to set up and be harder to keep up with. There's also a risk of getting stuck with one vendor and facing issues with growing your business.

    Businesses should weigh the pros and cons of ERP customization. They should consider what they really need, their budget, and their plans for growth. Smart customization practices, like keeping up with changes and removing old ones, can make a big difference.

    Working with experienced ERP providers like Kohezion can make ERP customization easier. Kohezion has all the tools and know-how to help businesses through the customization process. Contact us today to find out how our custom ERP software can increase efficiency and help your businesses grow.

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    Frequently Asked Questions

    Customizing ERP software helps businesses meet their unique needs. It solves industry-specific problems and gives them an edge over competitors. Making the software fit their processes helps companies make workflows smoother, automate tasks, and add features specific to their industry.

    To keep customizations up-to-date, use modern tech with layers that separate them from the core ERP. Work with skilled teams that know how to customize well. Keeping track of changes and maintaining customizations is key to staying compatible with new updates.

    ERP customization costs depend on how much you need to change the system. Things like development, upkeep, and resources affect the price. It's important to think about the benefits and costs before deciding. Choosing skilled developers and an efficient process can help manage costs and make the investment worthwhile.

    ERP vendors support custom solutions with their teams or partners. They offer help with setup, upkeep, and updates and provide documents, training, and resources for managing customizations. Working closely with the vendor is key to getting the support you need for your custom ERP.

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