Many experienced ERP implementers will say there are two rules you should follow when implementing these systems: 1. don’t not customise your ERP, 2. See rule 1. why do you think this is? what are the risks of customisation? What does a need to customise say about the willingness or an organisation the effect of BPR?
The implementation of an ERP system is complex and has a high level of risk of failure, and that is just the “vanilla” systems. Experienced ERP implementers will strongly advise against customised ERP systems for a number of different reasons and perceived risks, including costs, training and time.
The risks of implementing a customised system incurs extra costs. Purchasing an ERP system that is intended on customisation is expensive on its own, then the development of the customised system needs to be completed by experienced and skilled implementers, which also incurs hefty wages. The complexity of a customised system can be quite difficult to teach to staff that are not “tech savvy” and can make training extensive and costly, and more issues could arise from non-specialised personnel trying to use the system. The development of a customised ERP system can be time consuming and may result in the company missing out on potential business opportunities. Technology is rapidly progressing, and software is constantly requiring updates to stay relevant, a customised systems does not have a update provided by the vendor to fit the customised system, making it very hard for the company to upgrade their system appropriately.
When implementing a new ERP system, BPR plays a huge role here, because the implementation of a new system reengineers the company’s systems processes and can be quite a big change to the way things are done within the company. A company wanting to implement an ERP system can suggest that they are timid to change and would rather spend the time and money in developing a customised system then, implementing a “vanilla” system and training staff for the new system and adjusting to new processes.