When to customize your business application

Customization has a really bad reputation in our industry, don't you think? I cringe when I hear executives declare no customization policies at the beginning of their projects. If you ask me, that is a really high bar to set. One way or another, customizations do creep into the solutions when everything is said and done. Honestly, sometimes the right customization is the right thing to do. Let's dive into why.

All business applications come with embedded processes which can be configured through a set of parameters. During implementations, companies compare their processes against the ones that come with the new application. This is mostly referred to as gap-fit analysis. Once a gap is identified, there are two possible options to close it. Business can change their processes to fit the system or the system can be customized to fit the business requirement. Each option has its own advantages and disadvantages.

Changing business processes means changing people - which is not an easy thing to do. People naturally resist change, and it takes time to configure the system, documents the process, trains the business, and track compliance. There is time and cost associated with such an effort. On the other hand, customizations may be perceived as quick and simple solutions upfront yet they do cost quite a bit in the long run. Companies need to keep updating them with the latest versions of the software. So, how do we decide when to customize or not? Here is how I guided my customers.

Every company is unique. Otherwise, it cannot exist in the marketplace. Companies find their niches and differentiate themselves to compete better. I believe this uniqueness should be protected at all costs. New ERP systems can improve a lot of the existing operations, yet can fall short when they come across this uniqueness. The worse thing we can do is to dumb down this uniqueness for the sake of sticking to a no customization policy. We will do more harm than good. Even when IT teams try to enforce this policy, the business ends up finding workarounds. They will extract the data, use ad-hoc tools (Microsoft Excel, Microsoft Access, etc.) and model this uniqueness in their own way. Unfortunately, whatever they come up with is not supported by the IT team and is a risk to the company.

There is some good news. With the right application platform, customizations can be constructed as extensions rather than overlays. The core can be extended which allows them to be updated regularly without extensive cost. Don't get me wrong. We still need to have a good governance process to evaluate each customization request. We just need to remind ourselves to ask the key question - will this customization make my company more competitive in the marketplace or not?

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My name is Cem and this has been another gem.