Adjust your company to ERP or adjust ERP to your company?

I thought about this question while watching the Dutch football team win from Denmark today. Should a company adjust to an Enterprise Resource Planning system or shouldn't it? Yes indeed, the game was that boring!!

So what exactly is an ERP system? The Wikipedia definition of ERP is: "Enterprise resource planning is an Integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise wide system environment". Best known ERP systems are SAP and Oracle.

So why do companies implement ERM systems? Well mainly for two reasons;
1) Because there has been a major malfunction in the old systems running in the company. Usually these types ERP implementations are focussed on specialized parts of the entire organization.
2) The company needs to integrate all the separate data stored in a multitude of instruments in the different silos in the organization.

So who needs to adjust to whom? Implement the Vanilla version of the ERP or create a tailor made version? I think it all depends on what kind of company we are talking about. For instance, I have been working for a large international bank where, in accordance with new regulation, the implementation of an ERP and CRM system was a very high priority on the project list for many years. In this project it became clear that the company's processes were very complex, used a number of different and often outdated systems and in some cases were not even programmed in the same code. On top of that some of the processes could not be changed because they connected with systems of other organizations (like for instance clearing systems) or could only be changed marginal because they were required by law or regulation to be conducted in a certain way. In a situation like that, it will be unthinkable that the company changes all its procedures and way of working to adjust to an ERP system. It is in most cases not a feasible option. At the same time, ERP systems become very complex and expensive in situations like mentioned above. In sub parts of the ERP where the company can adapt to the system and where this would otherwise be too expensive/impossible to implement, the company will most likely adjust. In other words, it is both at the same time; yes they will adjust for a part and no for another part it is the reverse.

Companies that are less complex and are less regulated will most likely have less problems with adjusting their processes in technical/legislation terms. In those cases changing their processes might be a cheaper option than adjusting the ERP system to their organization. Most likely these companies will also be smaller in size and will have less "fat on their bones" to invest in an tailor-made ERP system. However, this does not mean they want to change the way the do their business. They might have devoted themselves on working this way, invested heavily in training personnel or there way of working has all to do with their competitive advantage. So for less complex organizations it can also be both; some companies will adapt to the ERP system others will definitely not.