Vibhu Kapoor, Regional VP for Middle East, Africa & India at Epicor, delves into the pros/cons of the two approaches to technology implementations – standardization and customization – and explains how organizations can strike the delicate balance between the two, and give their business the competitive edge.
In the Middle East’s vibrant business landscape, innovation knows no bounds. Organisations here are not merely dreamers; they are doers, and digital technologies lie at the heart of their endeavours. But pioneering innovation calls for a mastery of the delicate balance between leveraging standardised and customised systems. The former allows for the latest technologies to be rapidly rolled out, while the latter offers scope for the fine-tuning and finessing that is the hallmark of brands that go above and beyond.
“Cloud ERP allows for both standardisation and customisation, offering core functionality but also giving access to business intelligence, financial planning, e-commerce, and workflow automation. Cloud ERP also meets the critical security and business-continuity requirements demanded by all stakeholders.”
Vibhu Kapoor, Regional Vice President – Middle East, Africa & India, Epicor
Pros and cons
Standard systems are tempting. They ensure that processes and data across an organisation are predictable and able to absorb change because new systems will be similar and therefore compatible. Standard systems can be off-putting, though. They may not grant the flexibility required to grow on the business’s own terms.
Custom-built systems are also tempting. They offer the freedom to get things just right, so that business use cases are 100% fulfilled. Processes and data formats are designed to meet whatever goals are in front of you. Custom-built systems can also be off-putting, though. Change management becomes trickier with the occasional need for either a rip-and-replace or an expensive workaround because a new solution simply cannot talk to legacy products.
In a growing business, especially one on the cusp of venturing into new markets, a middle ground must be sought to ensure ongoing operational efficiency. Otherwise, the enterprise will be unable to duplicate in new markets the factors that brought such innovation and competitiveness at home.
Decision-shaping
The challenges faced today by GCC businesses will influence the standardisation-customisation trade-off. At home and abroad, the bigger your business gets, the more customer segments you will encounter. The same goes for overall market characteristics and regulatory frameworks. When a company makes the move abroad, many laws, trade agreements, IP protections, tax regulations, and industry standards may apply. This challenge calls for standardisation on the compliance side, with customisation to cater for local preferences.
This dovetails neatly with cultural considerations, where different hierarchies, leadership styles, and employee expectations may prevail. Systems must be flexible enough to allow remote work but also to accommodate needs for centralisation, should they arise. The market may also determine the technology mix, with ERP, CRM, or BI systems having different levels of relevance depending on the geography. Integrating systems to meet a local preference? Customise. Preserving the core functionality that makes the solution useful? Standardise. Meanwhile, customers, employees, and investors all have their own needs that will require a mix of standardisation and customisation.
Cloud ERP allows for both standardisation and customisation, offering core functionality but also giving access to business intelligence, financial planning, e-commerce, and workflow automation. Cloud ERP also meets the critical security and business-continuity requirements demanded by all stakeholders. Global enterprises use both standardised and customised protocols, and these can be found in the environments of the hyperscale providers that have launched cloud locations in the Middle East.
Balancing Act
And so, we arrive at a solution to the seemingly terrible trade-off. Too much standardisation can hold a growing business back. But too much customisation could do the same if organisational consistency is compromised across business units and locations. A cloud-based ERP suite gives the flexibility to continually adjust the mix, monitor the results, and react quickly. Balancing standardisation and customisation will bring a set of challenges unique to each global enterprise, but some strategies will be common to most.
1. Take stock
First, the enterprise must understand its current capabilities to gauge what challenges growth or expansion to new markets would bring to the business in its current form. Conduct a formal review that accounts for the roles of standardisation and customisation across business units. Assess your market position, quantify your competitive strengths, and revisit your customer segments. Consult your corporate mission.
2. Define your destination
Where do you want to be and how soon? Following your review, you will know where you are, allowing you to measure “distance” and get an idea of the gaps that need to be bridged.
3. Plot a course
The usefulness of roadmaps cannot be underestimated. The future success of the global enterprise is at stake. It is, therefore, prudent to be clear on how you are getting from where you are now to where you want to be, and what objectives and actions are incumbent upon each stakeholder.
4. Govern decisively
Communicate the implementation strategy of standardisation and customisation clearly and ensure firm, experienced leaders are in place. The workforce should have buy-in, which means being informed of the scope, objectives, and principles of any new processes. Employees should also be made aware of their daily responsibilities and level of authority. They should be informed about agreed-upon metrics and how they will be used to measure outcomes and maintain accountability.
Sure and Steady
These broad steps advise enterprises to move decisively without rushing in. Let information be your guide and never forget about the employees you are trying to empower, the customers you are trying to engage with, or the regulators you are trying to satisfy. The changes described here are significant. Work collaboratively and openly. Involve all relevant stakeholders in all decision-making about standardisation and customisation. If you move iteratively, you will build confidence among your people, who can then advise you on further standardisation or customisation opportunities supported by the right cloud-based ERP system.
Profile
Vibhu Kapoor, Regional VP for Middle East, Africa & India at Epicor:
As a Regional Vice President at Epicor, Kapoor leads the sales and partner ecosystems for the Middle East, Africa, and India regions, covering a diverse portfolio of software solutions for various industries. He has over 20 years of experience in the software and IT sector, with a proven track record of establishing alliances, closing high-value deals, and growing key accounts. Kapoor holds an Executive Program in General Management from MIT Sloan School of Management, and an MBA in Marketing from IFIM Business School.
