Personalized and industry specific ERP

Sinju N S

PT BATCH
ROLL NO:144214
School Of Management Studies
CUSAT, Kochi 22

Abstract: The Enterprise Resource Planning (ERP) system is an information

system that supports and integrates many facets of a business; it integrate all
aspects of a company's operations, including financial management, supply
chain management, human resources management, customer relationship
management, and more. Personalized and industry-specific ERP systems
are tailored to meet the unique needs and requirements of a particular
business or industry. These systems are customized to meet the unique
requirements of a business, taking into account factors such as the
company's size, industry, location, and specific business processes.
Personalized ERP systems are ideal for businesses that have unique
requirements that cannot be met by off-the-shelf ERP systems.

Key Words: ERP, Enterprise Resource Planning, Customized ERP, Industry

Specific ERP, Personalized ERP

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1.0 INTRODUCTION

2.0 General Information

An Enterprise Resource Planning (ERP) system is a software application that organizations

use to manage their day-to-day business activities such as accounting, procurement,
manufacturing, project management, and many others. Personalized and industry-specific
ERP systems are tailored to meet the specific needs of an organization or a particular
industry.

Personalized ERP systems are designed to fit the specific needs and
requirements of an individual organization. These systems are often created by ERP vendors
in collaboration with the organization's stakeholders, such as management, employees, and
IT department, to ensure that the ERP system fits the organization's unique workflows,
processes, and business rules. Personalized ERP systems can provide a high level of
flexibility and customization, which can help organizations to improve their efficiency, reduce
costs, and enhance their competitive advantage. Industry-specific ERP systems are designed
to meet the unique requirements of a particular industry. These systems often include specific
functionality and features that are tailored to the needs of the industry, such as supply chain
management, regulatory compliance, and product lifecycle management. Examples of
industry-specific ERP systems include healthcare ERP, construction ERP, and retail ERP.

Both personalized and industry-specific ERP systems can provide

significant benefits to organizations. These systems can help organizations to streamline their
operations, improve their productivity and efficiency, and gain better visibility into their
business processes. Additionally, these systems can help organizations to meet regulatory
compliance requirements and improve their decision-making capabilities through the use of
data analytics and business intelligence tools.

2. Enterprise Resource Planning (ERP): Personalized and Industry specific

2.1 Enterprise Resource Planning
An Enterprise Resource Planning (ERP) system is a software application that integrates and
manages an organization's core business processes, such as accounting, inventory
management, human resources, supply chain management, customer relationship
management, and other functions. It provide a centralized platform that enables the flow of
information across different departments and business units, allowing for real-time tracking and
monitoring of business operations. This can lead to increased efficiency, reduced costs, and
improved decision-making capabilities. ERP systems typically consist of modules that are
designed to manage specific business functions, such as financial management, procurement,
production planning, sales and marketing, and others. The modules are integrated with each
other, allowing for data to be shared across the different functions of the organization. It can be
customized to meet the specific needs of an organization, such as integrating with other
software applications or adding custom functionality. They can also be implemented on-
premise or hosted in the cloud, depending on the organization's requirements. Overall, an ERP
system can provide numerous benefits to organizations, such as improved visibility into

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business operations, increased collaboration between departments, enhanced data accuracy
and integrity, and improved decision-making capabilities.[1]

2.2 Benefits of Enterprise Resource Planning

Enterprise Resource Planning (ERP) is a software system that is designed to integrate and
manage all aspects of a business. A good ERP system offers many advantages — which can
vary depending on how the system is deployed. The benefits of cloud ERP, for example, are
different than on premise.[2] That said, there are six major benefits that apply to all modern
ERP solutions Refer Fig 1:

1. Higher productivity: Streamline and automate your core business processes to help
everyone in your organization do more with fewer resources.

2. Deeper insights: Eliminate information silos, gain a single source of truth, and get
fast answers to mission-critical business questions.

3. Accelerated reporting: Fast-track business and financial reporting and easily share
results. Act on insights and improve performance in real time.

4. Lower risk: Maximize business visibility and control, ensure compliance with
regulatory requirements, and predict and prevent risk.

5. Simpler IT: By using integrated ERP applications that share a database, you can
simplify IT and give everyone an easier way to work.

6. Improved agility: With efficient operations and ready access to real-time data, you
can quickly identify and react to new opportunities.

The benefits from ERP come in three different forms i.e. in the short-term, medium-
term and long-term. This benefit is in form of automating the transactions which promises
accuracy, reliability, availability and consistency of data.

 Gives Accounts Payable personnel increased control of invoicing and payment

processing and thereby boosting their productivity and eliminating their reliance on
computer personnel for these operations.
 Reduce paper documents by providing on-line formats for quickly entering and
retrieving information.
 Improves timeliness of information by permitting posting daily instead of monthly.
 Greater accuracy of information with detailed content, better presentation, satisfactory
for the auditors.
 Improved cost control.
 Faster response and follow-.up on customers.
 More efficient cash collection, say, material reduction in delay in payments by
customers.
 Better monitoring and quicker resolution of queries.
 Enables quick response to change in business operations and market conditions.
 Helps to achieve competitive advantage by improving its business process

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 Figure 1: Benefits of ERP
2.3 Types of ERP
There are three types of ERP available for businesses to use: on-site systems, cloud-based
systems, and hybrid systems. Each type of ERP has its own advantages and disadvantages
and is best suited to different use cases. At a glance, here’s what you need to know about each
one:

On-site ERP

The most traditional kinds of ERP are those that are housed on-site at a business’ physical
data center. For an ERP housed at a business’s premises, the business must maintain and
implement the system itself, rather than relying on online solutions. ERP of this kind are some
of the earliest systems, which rose to prominence in the 1990s when the internet was just
beginning to develop.

Cloud-based ERP

Today, many ERP systems are housed online in “the cloud” rather than directly within a
business’ physical data center. The benefits of cloud-based ERPs are that they can centralize
all of a business’ relevant data online and make it available to employees around the world.
Systems are also routinely updated by service providers and are often equipped with artificial
intelligence and advanced analytics capabilities, such as predictive modeling.

Hybrid ERP

Hybrid ERPs pair on-site ERP systems with cloud-based ones. Businesses that have invested
significantly in their on-site system or house sensitive data on-site may pair such systems with

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those in the cloud to maintain the benefits of updated cloud systems without having to sacrifice
what they already have in place.

Figure 2: The ultimate cutting-edge ERP software clients

2.4 ERP Customization

ERP system customization refers to the modifications made in the original code of the software
solution. This is done to add functionality and features to the software that your business needs
specifically. The customization of the software can be performed without changing the original
functionality in any manner. It must be remembered however, that customizing ERP software
can cause problems s there is a certain risk of failure.

Figure 3: Customized ERP Systems

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The software is already designed to function at its best, so when you tweak it, there is a chance
that it may malfunction. Of course, you can rectify any deficiencies the solution may have, and
also make sure that it is aligned to your requirements. But customization sometimes could
mean going away from best practices. However, developing and implementing a customized
ERP system can also be more complex and time-consuming than implementing an off-the-shelf
ERP system. It requires a thorough understanding of the organization's business processes,
data requirements, and system integration needs, as well as a team of experienced developers
and project managers to ensure the system is implemented successfully. If you want to
customize the software, you need to know the code and have expertise in coding, otherwise it
may not work properly. The original code rules will have to be followed, or the information
entered in transactions that have been customized, is likely to get corrupted. Other data prior to
or following the customized transaction is also in risk of corruption. Most ERP systems are very
flexible, and are capable of handling the requirements of a wide range of businesses; which
means you may not need ERP customization, thus the customization of ERP system is entirely
optional.

Why ERP Customization Is Important?

Off-the-shelf ERP software comes with a standard set of

capabilities built around business processes for each functional department. When the ERP
solution’s built-in processes differ significantly from those of the company, the customer can
take two routes - either build organizational processes into the ERP software through
customization, or change organizational processes to suit the native functionality of the ERP
software. It is quite difficult to implement the latter option in larger companies, as it would cause
too much disruption in their day-to-day business activities. In fact, a 2010 survey conducted by
Panorama Consulting found that only 15% of companies chose “plain vanilla” ERP software
(down from 28% in 2009). The remaining 85% chose to customize some areas of their ERP
software. The recent spate of mergers and acquisitions has also increased the need for flexible
ERP customization as newly combined companies find themselves with various sets of
heterogeneous ERP solutions that need to talk to one another, both at the headquarters level
and across multinational subsidiaries. Problems with Customizing Legacy ERP Applications
On-premise customizations come with the burden of “version-lock.” Version-lock occurs when a
particular version of an ERP application has been customized so much that it is no longer
practical to install a newer version of the application because there is too much risk that those
customizations will break in the process of upgrading. Because on-premise ERP
customizations are critical to the business yet do not automatically migrate to the upgraded
version, it dramatically increases the cost and complexity of upgrades. The only way to migrate
these customizations is to recode them from scratch, which takes too much time, money, and
resources, and can often be fragile. As a result, companies are simply locked into an older
version of their software and are unable to fully deploy a newer version across their enterprise.
It’s for this reason that, according to a 2010 Aberdeen Research report, two-thirds of completed
ERP deployments are not running the latest release. As a further consequence of version-lock,
enterprises waste enormous sums of money on maintenance. Maintenance costs take on many
forms, namely:

• Regularly spending IT resources customizing their various ERP systems further to keep up
with adapting business needs

• Maintaining two different versions of ERP applications

• Ensuring that any data with dependencies on the older, customized version is able to talk to
the newer version

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• Architecting connectors between different versions to ensure that workflows for critical
business processes operate smoothly.

Furthermore, because of the high degree of risk, cost and complexity

involved in implementing a traditional ERP system across their entire business, most large
companies choose to implement their ERP system in divisional or departmental phases. These
siloed departments and divisions then implement further customizations on top of their ERP
modules, limiting the potential value of their entire ERP systems and causing data integration
issues across the company. Simply put, the current state of on-premise ERP technologies
cannot keep pace with the requirements of today’s modern enterprise.

Types of Customizations

Layout Changes are the simple changes. Swapping the field order on a form for ease of data
entry. Manipulating layouts of menus. Renaming fields for better end user understanding or to
fit to a company’s corporate glossary. Adding new fields or sections for data entry. These tend
to be lower end cost. Workflow Changes are middle ground area. They entail hiding or unhiding
fields depending on where in the process a particular record is. Blocking an employee from
modifying the picked qty after the picking step is complete or preventing the reopening of a
case based on status. Business Logic Changes are the most complete end user changes. The
validating of one field based on multiple other fields. Actions such as copying new fields to
further records or starting a new form based on the end user’s inputs on this form. Creating a
custom calculation for availability that ignores stock purchased for specific projects. Any system
already has a built-in logic by which operates. Modifying that behavior requires knowing what
else is dependent on that logic. Much like removing a step from a business process requires
understanding what you are losing or gaining, customizing business logic requires a clear idea
of what is dependent on that step. Cross-system Integrations are data, api or interface sync
points that allow data signals to flow from one system to another system. Much like emails or
paperwork that flows between desks in an office, these signals trigger the separate systems to
begin new work or to make the contained information available to the end user. This allows
outside functionality to be used from the ERP system data. Neither expanding the usefulness of
the ERP solution without costly development to move the outside functionality into ERP, nor
forcing the end users to duplicate enters into multiple systems.

Why Cloud ERP Customization Makes Sense ?

Customizing ERP applications need not be a cumbersome task.

Cloud ERP enables rapid customization through a variety of methods ranging from graphical
customization to workflow re-engineering and has the potential to free businesses from the
burden of version-lock and costly ongoing maintenance projects. Provided these cloud
applications are architected from the ground up to be customized and have a mature platform
that future-proofs any customizations, the customization potential of ERP can indeed be
realized. With cloud computing, all processes rely on a single code base and utilize a managed
version upgrade process. Customizing ERP applications in the cloud is a lot faster and easier
than on-premise because the code base is standards-based instead of proprietary. This allows
companies to code their customizations into individual components and have these
components interact with other customizations through standards based web development
frameworks such as JavaScript. These web development frameworks automatically take care
of integration procedures up and down the entire technology stack from the application layer to
the database and operating system layers so that developers don’t have to. In addition,
customization of cloud ERP applications is typically abstracted from standard objects. As a
result, whenever a cloud application is upgraded to a newer version, customized components
are carried over to the new version seamlessly without the need for any painful code

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retrofitting. This ensures that costly resources are not spent manually migrating customizations
to the newer version and allows the organization to take advantage of new innovations
delivered with the upgrade. It is also important to recognize that you cannot achieve the
customization benefits of cloud computing by simply hosting on-premise applications. A hosted
application is simply on-premise software that has been outsourced to an ASP (Application
Service Provider). As a result, hosted applications suffer from the same limitations as on-
premise systems, including version-lock, with the added disadvantage that the maintenance
and upgrades are scheduled only when the hosting provider or VAR chooses to make them
available. Hosting on-premise applications makes customizing and upgrading even more
difficult, costly and risky.

2.5 ERP Personalization

ERP personalization refers to the process of customizing an Enterprise Resource Planning

(ERP) system to meet the specific needs and requirements of individual users or departments
within an organization. Personalization can be achieved through various methods such as
configuring the user interface, modifying workflows, creating custom reports, and setting up
user-specific access controls. Personalization of ERP systems can be beneficial for
organizations in several ways. Firstly, it allows users to have a more tailored experience and
reduces the learning curve associated with using new software. Secondly, it can improve
efficiency and productivity by enabling users to access the data and functionality they need
more quickly and easily. Thirdly, personalization can help organizations to meet their unique
business requirements and support their specific workflows and processes.

However, it is important to balance personalization with the need

for standardization and consistency across the organization. Overly customized ERP systems
can become difficult to maintain and upgrade, and can result in inconsistency in data and
processes across different departments. Therefore, it is important to carefully evaluate the
need for personalization and ensure that it aligns with the organizations overall goals and
strategies.

ERP Personalization is going even further than configuration and

customization. In fact, Personalization actually begins with configuration, and moves on to
customization and the last step is personalization. It is merely the process of making
adjustments in the software to ensure that it is a perfect fit for the customer’s requirements.
Whatever is relevant and has meaning for your business, like charts, metrics, reports, and so
on, whatever is required for your business to succeed and grow. Personalization is important in
ERP systems because it helps to improve user adoption and efficiency by tailoring the system
to meet the specific needs and preferences of individual users. The following are a few reasons
why personalization is important in ERP systems:

 Increased User Satisfaction: ERP systems can be complex and overwhelming to

navigate, especially for new users. Personalization can help users feel more
comfortable with the system by customizing the interface and functions to match their
preferences and work style.

 Improved Productivity: Personalized ERP systems can increase productivity by

streamlining workflows, automating repetitive tasks, and making it easier to access the

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 most relevant information. By reducing the time users spend searching for information,
they can complete their work more quickly and efficiently.

 Better Decision Making: By tailoring the system to the specific needs of each user,
ERP systems can provide more relevant and accurate data, enabling users to make
better decisions.

 Customized Reports and Dashboards: Personalization allows users to create

customized reports and dashboards that display the data and metrics that are most
important to them. This enables users to gain insights into their specific areas of
responsibility, and to monitor key performance indicators (KPIs) more effectively.

Overall, personalization is important in ERP systems because it can help to improve user
adoption, productivity, and decision making, ultimately leading to better business outcomes.

2.5 Industry Specific ERP

Enterprise Resource Planning (ERP) is a popular software system used by many businesses to
manage their operations. It helps companies to track and streamline their processes, from
financials to manufacturing, in order to improve efficiency. Industry-specific ERP is an
enhanced version of the traditional ERP system that is tailored to meet the unique needs of a
specific industry. Unlike the generic ERP system which is designed for broad usage across
multiple industries, an industry-specific ERP is specialized for one particular type of industry,
such as manufacturing or healthcare. Industry-specific ERP systems are designed with
features and capabilities that are tailored to a particular industry’s needs. These features
provide more detailed information, accuracy, and insight into a business's operations and
performance. For example, a manufacturing ERP might have features such as tracking
production levels, forecasting and scheduling, inventory management, and cost analysis.
These features allow businesses to better understand their operations and make better
decisions. They can also help reduce costs, improve productivity and enhance customer
satisfaction. Furthermore, industry-specific ERP can be integrated with other applications, such
as CRM and Supply Chain Management systems, making it easier for companies to manage
multiple systems at once.

When it comes to managing the complexities of modern manufacturing, there is no one-size-

fits-all solution. Every manufacturer has unique needs that can’t be fully met by generic
Enterprise Resource Planning (ERP) software. That’s why industry-specific ERP is so
important. Industry-specific ERP provides an enhanced user experience and tailored features
that support a manufacturer’s specific goals, processes, and requirements. This enables
manufacturers to gain the full benefit of their ERP software since it is designed to address their
exact needs.

The key benefits of industry-specific ERP for manufacturers are as follows:

 Improved efficiency: Industry-specific ERP systems are designed to streamline

business processes, from sales and order management to production planning and
scheduling. This helps manufacturers improve efficiency and reduce labor costs.
 Increased visibility: With an industry-specific ERP system, manufacturers have
complete visibility into their entire operation, from supply chain to manufacturing

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 processes and more. This helps identify potential issues before they become serious
problems.
 Better decision-making: Industry-specific ERP provides the data and insights
needed to make better decisions that will improve performance. From analyzing
trends to forecasting demand, ERP helps guide decisions to optimize operations.
 Enhanced customer experience: Manufacturers who use industry-specific ERP can
provide a better customer experience by having access to detailed information about
orders and production status. This helps improve customer satisfaction and loyalty.

Choosing the right industry-specific ERP solution for your manufacturing business can be a
difficult task. It requires an understanding of the specific needs of your business and the
capabilities of various ERP solutions. The following are some key steps to take when choosing
the best industry-specific ERP solution for your manufacturing business.

 Analyze Your Needs: Before you can begin the selection process, you must first
analyze your business’s needs. Take into consideration both current needs and
potential future needs so that you can select an ERP solution that can accommodate
both.
 Research Available Solutions: Once you have determined the needs of your
business, it is time to begin researching available industry-specific ERP solutions.
Consider the features and benefits offered by each solution to ensure that you choose
the one that best meets your requirements.
 Evaluate Pricing and Licensing: As you compare different industry-specific ERP
solutions, it is important to consider the cost of each solution. In addition to the cost of
the ERP system itself, you should also factor in any associated licensing costs as well
as any ongoing support and maintenance costs.
 Consider Cloud Options: Many industry-specific ERP solutions are now being
offered as cloud-based solutions. This option may be beneficial for businesses that
want to save on upfront costs and reduce the need for in-house technical expertise.
However, it is important to ensure that the cloud-based solution provides adequate
security and reliability before making a decision.
 Review Potential Vendors: When selecting an industry-specific ERP solution, it is
also important to evaluate potential vendors. Consider factors such as experience,
customer service, support offerings, and pricing when making a decision.

By taking these steps and carefully considering all aspects of the selection process, you can
ensure that you choose an industry-specific ERP solution that meets your business’s unique
needs. With the right ERP system in place, your manufacturing business will be better
equipped to streamline processes, reduce costs, and maximize efficiency.

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 Figure 4
4: The Industry Specific ERP systems

In summary, industry-specific
specific ERP is an advanced version of the traditional ERP system which
has been customized to meet the unique needs of a specific industry. It provides businesses
with more detailed insights into their operations and allows them to better manage their
processes. As such, it can help companies to maximize their efficiency and remain competitive
in their respective industry. Industry
Industry-specific
specific ERP offers many benefits that generic ERP
systems cannot match. It helps manufmanufacturers
acturers improve efficiency, gain better visibility into
operations, make better decisions, and provide an enhanced customer experience. With its
tailored features, industry-specific
specific ERP is essential for any manufacturer who wants to stay
competitive in today’s market.

3. CONCLUSION:
For years, Enterprise Resource Planning (ERP) applications have been instrumental in
integrating business activities across functional departments and improving the performance of
internal business processes. Most organizations typically customize ERP applications to fill
gaps in business requirements, address specific business processes and achieve competitive
differentiation. While customizing an ERP application is less expensive than building one from
scratch, development and deployment does consume significant time, IT resources and
budget. Moreover, customizations can break during an upgrade to a new version of on-premise
on premise
ERP application, forcing companies to painfully redeploy custom code on the newer version.
Other organizations
ations postpone ERP upgrades indefinitely, becoming stuck in a vicious cycle of
“version-lock.”
lock.” Cloud computing changes the customization equation. With cloud cloud-based
based ERP,
companies can develop new functionality in a matter of weeks instead of months or year years, and
carry over all customizations seamlessly to the latest release of the application. Personalization
is important in ERP systems because it helps to improve user adoption and efficiency by
tailoring the system to meet the specific needs and preferences
preferences of individual users. The
personalization is important in ERP systems because it can help to improve user adoption,
productivity, and decision making, ultimately leading to better business outcomes. n industry
industry-
specific ERP system is a software solution th that
at is designed to meet the unique needs of a
particular industry or sector. These ERP systems provide industry industry-specific
specific functionality,
workflows, and reporting capabilities that are tailored to the specific requirements of the
industry. Industry-specific ERP
RP systems provide tailored functionality, workflows, and reporting
capabilities that can help organizations to streamline operations, reduce costs, and improve
performance. By providing industry
industry-specific
specific solutions, ERP vendors can help organizations to
morere effectively manage their business processes and achieve their strategic objectives.

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