Customizing ERP-systems: A framework to support the decision-making process

Abstract

Enterprise Resource Planning (ERP) systems are standardized software packages based on industry “best practice.” Despite this off-the-shelf property, most companies that implement an ERP system choose to customize the software rather than change their business processes. Customization, however, represents a double-edged sword: on the one hand, it can provide improved functionality, increased user quality and satisfied users; on the other hand, it can bring significant risks to the company due to increased implementation costs, increased complexity, and expenses for subsequent upgrades. Interviews were conducted with ERP experts, and empirical findings contain different drivers and consequences for enterprises that choose to customize ERP systems and highlights related challenges. The purpose of the study is to develop a framework with accompanying guidelines that can help companies, in cooperation with suppliers and consultants, to better handle customization decisions in ERP projects.