An approach to estimation of degree of customization for ERP projects using prioritized requirements

Customization in ERP projects is a risky, but unavoidable undertaking that companies need to initiate in order to achieve alignment between their acquired ERP solution and their organizational goals and business processes. Conscious about the risks, many companies commit to leveraging the off-the-shelf built-in functionality in their chosen ERP package, keeping customization at a minimum level so that it does not jeopardize the project or the future projects that would build upon it. However, many organizations experience that once the project team enters the stage of implementing the solution, requests for customization increase in volume and diversity. Managing properly the process of customization gets increasingly harder. This paper addresses the problem of estimating the degree of customization at an early stage of ERP implementation. This will support customization decision makers in making value and cost trade-offs when approving requests for customization. We propose a solution approach in which customization requirements are reasoned in quantitative terms. Our approach uses client-prioritized requirements for the estimation of degree of customization during the ERP implementation. A case study is used to illustrate the application of the proposed approach. We also discuss the strengths and limitations of our approach as well as its implications for research and practice. (C) 2016 Elsevier Inc. All rights reserved.