The “No ERP Customization” Approach Sucks!

ERP customization is one of those topics that always stirs up debate. Some people love it. Some hate it. And some companies go to the extreme and say, “We don’t allow customizations at all.” If you’ve ever been part of an ERP implementation project, you’ve probably heard this mantra before.

But let me say it straight: the “no ERP customization” approach sucks.

It might sound great in theory. No custom code, easier upgrades, cheaper maintenance. But in reality, it’s often a missed opportunity to make your business processes better. Let’s dive into why completely avoiding customization in ERP is usually not the best idea, and what a smarter approach might look like instead.

What Is ERP Customization?

Before we go further, let’s answer the basic question: what is ERP customization?

Simply put, ERP customization means modifying your ERP system so that it better fits your company’s needs. That could include adding new fields to forms, building new reports, automating workflows, or integrating with other systems. This literally means that you are changing the way your ERP system works. It’s different from configuration, which usually means setting up the ERP using standard tools (like turning features on or off).

And while it’s true that customization comes with risks (extra cost, complexity, upgrade challenges), a well-designed customization can dramatically improve productivity, compliance, and even employee satisfaction.

Why a Strict “No Customization” Policy Fails?

Let’s face it – companies change. If your company is growing, entering new markets, or expanding product lines, your ERP needs to keep up. But if you’re stuck with a “no customization” policy, you may end up forcing your people into workarounds and manual processes.

Imagine this: your business develops a new service model that gives you a competitive edge. But your ERP can’t support it out of the box. You ask for a customization, and you’re told “we don’t do customizations.” So now, instead of improving your process, you’re stuck with Excel files, email threads, and time-wasting double entry.

By refusing to adapt your ERP to the business, you’re doing the exact opposite of what enterprise software is supposed to do: support your operations.

Customization Should Be an Option!

Let’s be clear: I’m not saying every customization is a good one. Some are just plain unnecessary, or even harmful.

The best approach is balance. Customizations should be limited to:

• Things that are really important to the business
• Things that are required by authorities or government regulations
• Things that bring a clear productivity or customer service benefit

You shouldn’t customize just because one user wants a green button instead of a blue one. But if a change will help automate an error-prone process or speed up month-end reporting, it might be worth it.

What Are the Pros and Cons of ERP Customization?

Like most things in life, ERP customization has pros and cons. The trick is to weigh them carefully.

Pros:

• Improves process fit – Tailors the system to your unique business needs.
• Boosts productivity – Saves time by eliminating manual steps.
• Enables innovation – Supports new business models that standard ERP can’t handle.
• Increases adoption – People are more likely to use the system if it actually helps them.

Cons:

• Higher costs – Custom development and future upgrades can cost more.
• Maintenance complexity – Custom code needs to be tested, updated, and supported.
• Upgrade risk – New versions of the ERP might break customizations.

So again, it’s all about choosing the customizations wisely.

What Is the Difference Between Customizing and Standardizing an ERP System?

This question comes up a lot: what is the difference between customizing and standardizing an ERP system?

• Standardizing means using the ERP “as is” (sticking to what the vendor provides).
• Customizing means tailoring it to fit your business.

Standardization is great when it works. It keeps things simple and clean. But if it blocks business performance, it becomes a liability.

Why Standardization Isn’t Always the Answer?

Here’s something most IT departments forget: people hate change.

If you implement an ERP and say “we’re doing everything the standard way,” that often means changing how people work. Sometimes that’s OK – maybe their old process was not the best fit for the business. But other times, you’re asking a team to give up a process that actually works well just because “the system says so.”

Forcing everyone into a one-size-fits-all box is risky. You might get compliance, but you’ll lose engagement. And good luck getting adoption when your system makes people’s jobs harder.

A Smarter Way to Manage ERP Customizations

Here’s an approach I’ve seen work well: put process owners in charge.

Instead of letting everyone request random customizations (which leads to chaos), allow users to submit ideas or pain points. Then let process owners or a governance group review them. They can decide:

• Is this customization really needed?
• Can we fix the issue with configuration or process change instead?
• What’s the ROI?

This way, you get the best of both worlds. Employees feel heard, your ERP stays manageable, and only high-impact changes get implemented.

Change the Process First

It’s true: the first step should always be trying to change the process to fit the ERP. But if that means lower automation, reduced productivity, or worse customer service, then customization might still be the better option.

Be Smart About ERP Customization

So yes, ERP customization can be risky. But refusing to do it at all? That’s a bigger risk in the long run.

If your business is growing, your ERP should grow with it. And sometimes, that means customizing – wisely, strategically, and with the right people involved.

Don’t fall into the trap of thinking that standard is always better. The real goal is to build an ERP system that supports your business, not one that your business has to bend over backwards to fit. If you want to see what are some of the options to extend you ERP, make sure you read one of my previous blog posts on Understanding the Software Integration Process: Custom Development, Add-Ons, and External Systems.

If you want to learn more about similar topics make sure you read a book called Enterprise Systems Integration.

Have you been part of an ERP project where customizations were banned? Or maybe one where too many were allowed? I’d love to hear your thoughts in the comments.