Should Small and Medium Enterprises go for Standardized or Customized ERP Solutions?

Often when small and medium enterprises (SMEs) go for ERP solutions they prefer for the erp software to be customized. There can be many reasons for this. The most important and prevalent among them is the question of how the staff will handle the new ERP system. If they will be comfortable with the new software or would they prefer some basic changes in the older one. Given this thought, employers ask SME vendors to customize their ERP offerings so that they can avoid staff-related implementation issues.

This problem can arise whether a company is going for ERP solutions for the very first time or are opting for them from a different vendor than before. The question here is, if customization should be preferred over standardization.

Why companies prefer customization?

SMEs evolve at a very fast pace. Everything, from their business processes to their manpower grows at an astounding pace which makes flexibility a very important factor for them. They need their processes to be scalable, and the same applies to the ERP solution that they want to be implemented. They feel that the ERP software should mirror the scalability and flexibility that their business has seen over the years.

Why standardization is a good option for them?

Although the SMEs need for flexible business ERP solutions makes sense, standardization makes for a better factor when it comes to implementation. The ERP solutions that you find today are based on years of industry expertise and best practices. As a result, these solutions have already covered all the challenges that an SME might face during implementation, thus offering a specific solution to every kind of possible issue that can be expected to arise.

How can the concern of staff retention be addressed?

Many SMEs also think that the implementation of standardized ERP software might lead to a decrease in employee morale and productivity. This can also lead to loss of employees. This is a valid concern and can be taken care of by using proper change management techniques. By making the shift from no/old ERP to a new ERP, seamless and comprehensible, with proper introduction and training, this problem can be easily taken care of.

If the employees receive proper training and are involved throughout the implementation process, then they start to feel like a part of the entire journey which helps to build an efficient eco-system.