Stephan Haubold
Consulting and sales for the wholesale trade.
Software-as-a-Service technologies have experienced rapid development in recent years. The Software-as-a-Service (SaaS) operator model is also becoming increasingly important for business software, especially ERP systems, because the SaaS world offers numerous advantages: companies benefit, for example, from fast provision, flexible scalability, automatic Updates, global availability, short innovation cycles, integrated service and support, and transparent pricing models. But their biggest advantage seems to be their biggest disadvantage at the same time: SaaS is always standard software. So do companies have to do without their individual processes when they move into the Cloud want? No, fortunately not. Because software-as-a-service technologies also offer opportunities to adapt the standard to the processes and requirements of your company. In this blog article you can find out exactly how this works and what needs to be considered.
Are customizations possible in the SaaS?
Yes, individualizations are basically also possible with SaaS-based ERP systems like Microsoft Dynamics 365 Business Central possible. However, there are certain differences between the types of customization that can be done in a SaaS environment.
"It is important to critically question whether the desired adjustment is absolutely necessary or whether the existing processes can be adapted."
Stephan Haubold, consulting and sales for wholesalers, KUMAVISION AG
Which customizations are possible?
There are two main types of customizations in the SaaS: Customization and private extensions.
In the Customizing is the configuration of the standard system without any intervention in the code, i.e. the adaptation of the existing functions and settings to the specific needs and requirements of a customer. This includes actions such as showing and hiding fields, using fields for other functions, customizing the user interface and setting up workflows or creating customized reports and analysis dashboards. The customizing is done with the options provided by the SaaS environment. So no additional functions have to be reprogrammed.
In contrast, it is one private extension a customer-specific extension, which is developed exclusively for a customer. As a rule, an extension is only used when certain applications or functionalities cannot be mapped through customizing. A private extension allows companies to extend and customize the standard functionality of the SaaS software to better support their specific needs and business processes. To create this individual extension, it is necessary to know the processes and the software in detail.
How does an extension fit into a SaaS solution?
Most ERP systems in the Cloud are modular. The basis is the core system, for example Microsoft Dynamics 365 Business Central, which already has functions for all core processes from sales to merchandise management & logistics and production to financial accounting. Industry-specific additional functions can then be mapped with powerful solutions such as the industry software from KUMAVISION. These are connected to the core system using standard connectors. In addition, companies can add further extensions from the Microsoft App Source to map tasks such as credit checks, supplier evaluation, document archiving or automated data exchange with business partners via EDI/EDX. Finally, the private extension includes all company-specific adjustments that reflect the individual needs of the company.
Do customizations change the core software?
Customizations used to change the standard. That is no longer the case these days. Each individualization - regardless of whether it is an industry solution or a private extension - complements the standard software. The big advantage: All adjustments can be edited and maintained independently. As a result, much more extensive adjustments are possible compared to before and their maintenance is much easier than ever before. However, there are certain requirements that must be met, such as the integration of test automation.
What do I have to consider with a private extension?
This type of individualization means that companies have an increased need for care:
- For updates: With each monthly minor release, the functionality of the Private Extension must be checked.
- When changing versions: New testing is required for each major release, for example in April and October.
The good news: The testing does not have to be done manually, but can be automated. Using test automation, which should already be integrated when the private extension is created, central functions are checked using predefined test cases for each release. Intervention is only necessary if a malfunction is detected. Then it may be necessary to adapt the Private Extension to be compatible with the new versions of the SaaS platform.
"Companies that recognize the advantages of standardized processes and know how to use them for themselves are one step ahead of the competition."
Stephan Haubold, consulting and sales for wholesalers, KUMAVISION AG
Why it doesn't always have to be an individualization...
In principle, it is therefore possible to adapt SaaS software to individual requirements by means of customizing and private extensions. However, the rule of thumb is: "The more adjustments I want, the more I should rely on individualization through customizing!" Because any additional customization in the form of a private extension should only be used when it is really necessary. It is important to critically question whether the desired adjustment is absolutely necessary or whether the existing processes can be adjusted. Because the use of standardized processes also creates a lot of freedom:
- Standard processes include verification mechanisms, quality controls and clear responsibilities. In this way, sources of error are systematically reduced.
- Standardized processes form the basis for scalability and future growth. Because companies can easily expand the processes - without having to develop new processes from scratch.
- Standard processes make training easier and shorten the familiarization period because all documents and instructions deal with exactly the processes that are mapped in the software.
- Standard processes improve continuity in the company. Because they serve as a guide and enable every employee to seamlessly enter the process and continue the work that has already started.
- Companies benefit from the experience and knowledge of many other companies through the proven methods, best practices and standards established in the industry. This allows them to improve the way they work, complete tasks more efficiently and save time.
- Companies benefit from a short time-to-value, as they can work productively with their new solution very quickly. Time-consuming and costly development projects are no longer necessary.
The perfect balance
Ultimately, every company has to find the right balance between standardization and customization. Because this decision is one thing above all: A strategic consideration, which is one of the central key elements for the future development of the company. There is no general answer as to whether a pure standard solution or a balanced combination of customization and private extensions is the most promising. The decision depends on various factors.
But one thing is clear: companies that recognize the advantages of standardized processes and know how to use them for themselves are one step ahead of the competition. Companies benefit from powerful solutions such as the industry software from KUMAVISION. This tailor-made ERP solution for various sectors such as manufacturing, trade or services is based on proven standards that have already been successfully implemented in numerous companies. In this way, companies benefit from the advantages of standardized processes in terms of efficient and effective working methods as well as maximum flexibility, because the industry software can be adapted to company-specific features via parameters.
By the way ...
Before companies decide to make extensive adjustments to their business software, they should test the standard processes in practice – with customizing if necessary. Our experience shows that in most cases there is little need for individual developments. And where adjustments are really necessary, these can be specified much more purposefully after a few weeks of practical testing.
Our experienced consultants will be happy to advise you on how you can further increase the efficiency, scalability and competitiveness of your company with SaaS software. Arrange your free initial consultation today!
