For enterprise-level businesses, an enterprise resource planning (ERP) system is the “brain” of the entire operation. Every major function of the firm is performed through, or logged into the ERP system. As a result, your software tool could be a major limiting factor for your operational efficiency and scale. Now, the urgency of this issue keeps inching higher, as the age of AI has added functionality to modern ERP software that was previously unheard of.
However, this has caused many business leaders to wonder how to improve their ERP systems. When firms want new or updated functionalities, they often think they must purchase a whole new ERP system, but that isn’t always the case.
To help decision-makers better understand how to ensure you’re getting the features you need from an ERP system, this guide will cover:
- ERP configuration
- ERP customization
- Custom ERP development
Let’s examine each selection in greater detail to clarify the best option for your business.
ERP Configuration
Configuring your current ERP software involves using built-in settings and tools to make small but meaningful changes to the native features. This will help better tailor the end-user experience to your business’s use case, but it won’t bridge any major gaps in functionality.
Is Configuration Right For My Business?
Need | Investment | Outcome |
---|---|---|
Configuration is best for firms that can use the platform to meet 95% of their needs. | Easily handled by an in-house team member with training on the platform. | Minimal improvements in feature parameters and interface. |
Common use cases for configuration include changing user permissions, customizing dashboards, altering default security settings to comply with industry-specific regulations, and creating custom workflows to improve the efficiency of your ERP system. While configuration may impose significant limitations, it also requires virtually no financial investment and often presents a great first step to improving your ERP and determining whether or not you need to consider spending more.
ERP Customization
Customizing your ERP system involves programming new apps or integrations with existing third-party options to add functionality to your software. This usually means bringing in or contracting with a programmer or custom software developer, depending on which features you need.
Is Customization Right For My Business?
Need | Investment | Outcome |
---|---|---|
Customization is best for firms that can use their ERP platform to meet 80-95% of their needs. | Most businesses will need to pay a programmer or outsource to a custom software developer to modify their ERP properly. | Substantive feature additions and integrations with apps in your current software stack can make or break your ERP’s compatibility with your use case. |
Customization can overcome much larger gaps in functionality than configuration but at a higher cost. Possibilities include creating or integrating entirely new apps to add features that your existing software lacks. This makes it much easier to leverage a familiar ERP like Salesforce or Microsoft Dynamics 365 so your staff can continue using familiar software and workflows, but adds some new features to improve its capabilities.
Custom Software Development
For businesses that can’t find an ERP system that offers at least 80% of the functions they need, or simply prefer to own a bespoke system perfectly tailored to their business workflows, you can hire custom software developers to build one from the ground up.
Why OOTB CRMs Fall Short:
Email Parsing and AI Integration:
OOTB CRM platforms like Salesforce or Dynamics offer basic features like email integration, but they typically lack advanced NLP and unstructured data processing capabilities. While add-ons and integrations with third-party apps exist to add these features, implementing a truly purpose-driven AI model for email intake and other core business processes requires custom development.
Dynamic Workflow Complexity:
Standard CRM and ERP platforms rely on pre-defined workflows and rules-based functionality. They aren’t capable of on-the-fly updates based on real-time data or interdependent workflows the way that custom-built software can be.
Real-Time API Integrations:
Standard CRMs can integrate with APIs but often can’t manage complex, real-time API-driven workflows without extensive custom code or integrations that drive up the price in perpetuity through additional licensing fees.
Scalability for Parallel Workflows:
Parallel multi-step workflows with interdependencies and AI decision-making exceed the standard capabilities of most CRMs without extensive integration or customization through custom programming– both of which can be cumbersome and expensive.
Custom Reporting:
Creating client-specific, detailed reporting tied to unique business rules often requires custom software with specific data visualization and export capabilities.
How Custom Development Helps
Custom developers can create a custom AI-powered CRM/ERP system that:
- Integrates with the CRM for basic customer and sales data
- Provides advanced email parsing, task automation, and decision support
- Allows highly configurable and dynamic workflow rules tailored to the business’s needs
- Scales seamlessly with the company’s operations
This culminates in a platform that not only meets every need of your business but also adds value to the company itself through IP ownership.
Is Custom Development Right For My Business?
Need | Investment | Outcome |
---|---|---|
Custom development is best for firms that can’t get 80% of their needs met by an existing ERP platform or those with unique business requirements that an OTS ERP/CRM just can’t meet. | Typically, businesses will need to contract out to a custom software development company to build them an ERP system from the ground up. | A fully purpose-driven ERP platform that is built specifically for, and owned by, the business purchasing it. |
The possibilities regarding a custom-built ERP are essentially limitless. Though custom platforms require the largest up-front financial investment, the lack of ongoing licensing fees offsets the cost. In addition, the value of the IP will contribute even greater value to the purchasing organization over time. This can make custom solutions an exceptional value in the long term, especially for businesses that need truly custom software to meet highly specialized needs.
Decide How To Improve Your ERP System With 7T
At 7T, we use a “Business First, Technology Follows” approach to create CRM/ERP solutions for our clients across countless industries. Our custom-built platforms leverage machine learning and AI technology to deliver significant operational advantages with a robust ROI. Our team will audit your organization’s challenges, often showing up on-location to embed ourselves in your workflow to understand your needs from a first-person perspective. Then, we’ll architect a value-generating solution to transform your vital processes and meet your goals.
7T is based in Dallas, Houston, and Charlotte, NC, but our clientele spans the globe. If you’re ready to learn more about how to improve ERP systems, contact 7T today.