Maximizing the Value of Packaged Software Customization

Author(s):  
Bryon Balint

Organizations that purchase packaged application software – for example, an Enterprise Resource Planning system – must make choices about customization. Packaged software vendors and practitioners recommend that organizations customize software as little as possible, and instead adapt their processes to meet the “best practices” of the software. However, organizations continue to exceed their budgets on implementing and maintaining customized software. This suggests that either these organizations are making poor decisions, or that the conventional wisdom about customization is incorrect. In this paper the author models the primary factors in the customization decision, most notably the “fit” between desired processes and the procedures inherent in the packaged software. The author then consider costs related to development, maintenance, and technical corrections due to poor integration and performance; and benefits related to increased fit, technical corrections, and user acceptance. This paper extends prior work by (1) modelling nonlinear relationships between the amount of time spent on custom development and the resulting benefits, (2) modelling nonlinear relationships between development costs and maintenance costs, and (3) modelling corrective development as a function of development related to fit and user acceptance. The author uses simulation techniques to illustrate the conditions under which customization is likely to provide value to the organization, as well as conditions under which customization should be avoided.

2017 ◽  
Vol 13 (1) ◽  
pp. 1-16
Author(s):  
Bryon Balint

Organizations that purchase packaged application software – for example, an Enterprise Resource Planning system – must make choices about customization. Packaged software vendors and practitioners recommend that organizations customize software as little as possible, and instead adapt their processes to meet the “best practices” of the software. However, organizations continue to exceed their budgets on implementing and maintaining customized software. This suggests that either these organizations are making poor decisions, or that the conventional wisdom about customization is incorrect. In this paper the author models the primary factors in the customization decision, most notably the “fit” between desired processes and the procedures inherent in the packaged software. The author then consider costs related to development, maintenance, and technical corrections due to poor integration and performance; and benefits related to increased fit, technical corrections, and user acceptance. This paper extends prior work by (1) modelling nonlinear relationships between the amount of time spent on custom development and the resulting benefits, (2) modelling nonlinear relationships between development costs and maintenance costs, and (3) modelling corrective development as a function of development related to fit and user acceptance. The author uses simulation techniques to illustrate the conditions under which customization is likely to provide value to the organization, as well as conditions under which customization should be avoided.


Author(s):  
Bryon Balint

Businesses that purchase packaged application software – for example, an Enterprise Resource Planning system – must make choices about customization. Software vendors, anecdotal evidence, and practitioner-oriented research all recommend that organizations should customize software as little as possible, and instead adapt their processes to meet the “best practices” of the software. However, businesses continue to exceed their budgets on implementing and maintaining customized software, often to a significant extent. This suggests that either these organizations are making poor decisions, or that the conventional wisdom about customization is incorrect. In this paper we model the primary factors in the customization decision: “fit” between the desired business process and the packaged software; costs related to development, maintenance, integration, and performance; and benefits related to increased fit, integration, performance, and user acceptance. We use simulation techniques to illustrate the conditions under which customization is likely to provide value to the organization, as well as conditions under which customization should be avoided.


Author(s):  
Bryon Balint

Businesses that purchase packaged application software – for example, an Enterprise Resource Planning system – must make choices about customization. Software vendors, anecdotal evidence, and practitioner-oriented research all recommend that organizations should customize software as little as possible, and instead adapt their processes to meet the “best practices” of the software. However, businesses continue to exceed their budgets on implementing and maintaining customized software, often to a significant extent. This suggests that either these organizations are making poor decisions, or that the conventional wisdom about customization is incorrect. In this paper we model the primary factors in the customization decision: “fit” between the desired business process and the packaged software; costs related to development, maintenance, integration, and performance; and benefits related to increased fit, integration, performance, and user acceptance. We use simulation techniques to illustrate the conditions under which customization is likely to provide value to the organization, as well as conditions under which customization should be avoided.


2015 ◽  
Vol 11 (1) ◽  
pp. 33-49 ◽  
Author(s):  
Bryon Balint

Businesses that purchase packaged application software – for example, an Enterprise Resource Planning system – must make choices about customization. Packaged software vendors, anecdotal evidence, and practitioner-oriented research all recommend that businesses should customize software as little as possible, and instead adapt their processes to meet the “best practices” of the software. However, businesses continue to outspend their budgets on implementing and maintaining customized software, often to a significant extent. This suggests that either these businesses are making poor decisions, or that the conventional wisdom about customization is incorrect. In this paper the authors model the primary factors in the customization decision: “fit” between the desired business process and the packaged software; costs related to development, maintenance, integration, and performance; and benefits related to increased fit, integration, performance, and user acceptance. They use simulation techniques to illustrate the conditions under which customization is likely to provide value to the organization, as well as conditions under which customization should be avoided.


Author(s):  
Fakhri Rahmadan ◽  
Yusi Tyroni Mursityo ◽  
Niken Hendrakusma Wardani

The purpose of this evaluation is to evaluate user acceptance of the Glovia ERP system, whichever embedded in PC to assist operator staffs to record material stocks. The research methodology used in this study is the UTAUT model adjusted for the research problem's conditions. The issue happens because the Staff feel more comfortable with the old procedure and think it has supported their performance well. The respondents, as the sample in this study, are the staff operator from the MRP division. Data analysis is done using Partial Least Squares—the result of the research state that the Performance Expectancy variable has a significant effect on the Behavioral Intention variable. On the contrary, the other variables do not significantly affect the Behavioral Intention variable. The behavioral Intention variable has an R square value of 0.352 percent, which states that four independent variables can explain 35.2% of the Behavioral Intention variable. From the test results, it is suggested that the MRP division of PT can use the recommendations. Xacti Indonesia, as a consideration that can be used to improve the system currently applied.


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