Enterprise resource planning (ERP) is business management software-typically a suite of integrated applications-that a company can use to collect, store, manage and interpret data from many business activities. This includes:
Manufacturing or service delivery
Marketing and sales
Payment and Shipping.
Customization is always optional, whereas the software must always be configured before use (e.g., setting up cost/profit center structures, organizational trees, purchase approval rules, etc.)
The software is designed to handle various configurations, and behaves predictably in any allowed configuration.
Improves user acceptance and offers the potential to obtain competitive advantage vis-à-vis companies using only standard features
Customization disadvantages include that it:
Increases time and resources required to implement and maintain.
Inhibits seamless communication between suppliers and customers who use the same ERP system uncustomized.
Can create over reliance on customization, undermining the principles of ERP as a standardizing software platform.