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What is custom ERP software? Should I choose one?

October 21, 2024

What is custom ERP software? Should I choose one?

The technological evolution of business management software has changed the paradigm of operational management of companies. Today more than ever, organizations of a certain size are looking for tools that adapt to their needs. And a clear example of this trend is custom ERP software.

We already know that a conventional ERP system can offer a myriad of functionalities related to process management and automation. Now, what happens when a company needs a solution that fits perfectly with its processes and structure? This is where personalization comes into play, a term that has gained special relevance in markets as demanding as the United Arab Emirates.

Broadly speaking, generic ERP solutions allow you to integrate and manage different areas of the company under the same system to have all the information centralized. However, ERP system integration becomes even more critical when we talk about custom ERP, as we are referring to a system that is molded to the requirements of the organization, with all that this entails in terms of efficiency and the possibility of adjustments.

The demand for customizable solutions

It is clear that generic software will not always be able to cover the particularities of each company. Needs can vary greatly depending on the sector, size, and, of course, the business model. The question is, why is custom ERP software a more recommendable option for many companies?

Exact adaptation to the business

Every company has its own processes and needs. A standard ERP can include configurable functionalities, modules that complement its capabilities, and custom developments or specific add-ons for each industry. The real difference lies in how these functionalities can be adapted and in the features designed specifically for each sector. In addition, integration with other tools, both from the ERP itself and from third parties, is essential to optimize operations. In markets such as the UAE, where businesses as diverse as logistics, manufacturing, or luxury retail companies operate, configurability and integration is crucial to meet the unique needs of each company.

Flexibility for future changes

Like the economy, the business world is constantly changing, as it is subject to external agents. Markets evolve, regulations adjust, and business models change, so having custom ERP software allows you to adapt more quickly to these transformations, without relying on global updates that may not arrive at the right time.

A clear example could be a company in the UAE that needs to adopt new local regulations; a system tailored to its needs will allow it to make these adjustments more efficiently. All this without the need to wait for the ERP provider to deploy the update that contains this functionality and that may not be immediately available.

Process optimization

When custom ERP software is tailored to the company's workflows, unnecessary steps are eliminated that improve the overall efficiency of the entire system. In this way, instead of forcing employees to follow processes that do not fit with their daily work, the system is configured to facilitate the highest performance in each area that is executed.

This translates into a less steep learning curve, which in turn results in a lower rate of human error, with all the inherent advantages. Shorter response times, a better experience for both employees and customers, and more.

Customizable ERP types

Customizable ERP types

When it comes to customizing an ERP, not all solutions are the same. In this case, you must choose an ERP according to the type of your business, as there are different types that allow you to adapt to the particularities of each company. Here are the three you should know:

Vertical ERP

As its name suggests, a vertical ERP is designed with a specific industry in mind through a set of tools deployed for its correct operation. Generally, these systems are designed to reduce implementation time, since they come with modules prepared for the needs of this sector.

For example, a construction company might opt for a system that is already configured as standard with tools for managing projects and other contractor companies. In the case of an e-commerce platform, the ERP would have e-commerce, inventory control, and shipment management modules.

Open Source ERP

The definition of an open source ERP is given by access to the source code of the software that the client owns. In other words, the developer company cedes the internal exploitation of the code to those organizations that have a development team or work with external suppliers that can modify the software according to their needs.

Although it requires greater control and technical expertise, it is an option that offers a lot of freedom when it comes to creating tailor-made solutions. Of course, due to the development cost involved, it is usually associated with large companies and institutions with their own production capacity.

Modular ERP

A modular ERP allows companies to select the modules they want to implement based on their current needs. By working in this way, the system can evolve along with the business, adding or removing modules as needed.

This is especially useful in enterprise environments that don't require a complete system from the start, but plan to expand their capabilities as they grow. For example, a business that operates through different physical stores and that, given the success achieved in sales, is considering opening a digital space in the form of an e-commerce or service platform.

SAP Business One: A Customizable ERP of Reference

It's time to choose a custom ERP software, which one best suits my needs? SAP Business One has established itself as one of the most robust and flexible options on the market for both small and medium-sized and high-volume businesses.

Leaving aside its characteristics, which we will talk about below, it includes all kinds of solutions that respond to the needs of any SME: Accounting and finance, purchasing, inventory and sales and customer relations modules, reporting and analytics, and more.

Tailor-made processes and reports

One of the main advantages of SAP Business One is the ability to create processes for each company, as well as fully customized reports. This allows organizations to obtain accurate information according to their own criteria, without relying on predefined reports that may not fit what they really need to analyze.

Solutions for specific industries

SAP Business One also offers vertical solutions developed by SAP's expert technology partners that are tailored to different industries. Efficiency is one of the main assets of this ERP, as it allows you to configure modules that meet the needs of each company, regardless of the nature of its commercial activity, with the savings in time and adaptation effort that it entails.

User-Friendly Interface

Another point to highlight about SAP Business One has to do precisely with the user interface, which can be customized according to the preferences of each employee depending on the role they play within the company. By allowing each user to configure their workspace, you get more fluidity in the use of the system.

For example, a sales manager can customize their dashboard to display a set of data and metrics related to sales and team performance, while a warehouse manager can configure the main view to get the last week's outbound orders at a glance.

Integration of additional modules

The ability to integrate additional modules, i.e., the functionalities associated with a specific department, is another key to this system. SAP Business One allows you to add new features without changing the entire system as your business grows or needs change.

In this way, the initial investment remains valid, since the system can continuously adapt to the new demands of the market or the company itself.

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