Page 179 -

Chapter 5 • Implementation Strategies 155

response time, and significant increases in storage capacities made it feasible. It was difficult to
provide the connectivity and the hardware to support the software technology fully to realize
the goals in an ERP implementation prior to using this newer generation of IT infrastructure.
The process to reach those goals, however, is complex. As previously described, there are many
components that need to be planned and implemented for a successful ERP implementation. It
is a significant amount of work. That being said, a company should analyze whether or not the
system is going to be modified or not. It is sometimes termed a “vanilla” implementation when
modifications are not allowed.

What Is a Vanilla Implementation?
A vanilla implementation is the decision to implement an ERP as is and modify business processes to
match the system or to modify the ERP to match business processes. It is fundamental to make this
decision prior to starting an implementation. A vanilla implementation is when the company chooses
not to modify (i.e., customize) the system but instead to change business practices to fit the system.

Why Would You Consider a Vanilla Implementation?
In the global business world of today and with added scrutiny and tighter regulations in the area
of financial reporting, modifying a system can be costly. Several factors need to be considered
before customizing an ERP:
•Businesses with relatively straightforward business practices that are not unique should
consider a vanilla implementation.
•Businesses that are not skilled or experienced at building or changing systems should
consider a vanilla implementation.
•In vanilla implementations, all of a company’s branches run the same system in a single
instance and enter and retrieve data in a similar fashion, thereby reducing hardware, soft-
ware licensing, implementation, and training and support costs. This is a cost-control
factor.
•For a company using a purchased ERP system where the financial component is critical for
reporting, a vanilla system will more than likely pass the Sarbanes–Oxley audits in a timely
fashion.
•Last, for a competitive advantage, it is important to know the ability of what and where
things are around the world with your business in terms of parts inventory, maintenance
agreements, and processes. Again, and as an example, if everyone is entering and
retrieving the same information, the ability to know inventories and what is needed in a
timely fashion without needing to contact others around the world creates a competitive
advantage for a business that needs to react to information in a timely manner.

When Should You Consider Modifying an ERP?
Even though there are many reasons to implement a vanilla ERP, many businesses choose to
customize or modify the system to meet business needs (i.e., add in some chocolate) and are very
successful. Businesses that have highly skilled IT developers and a proven process for managing
modifications can certainly choose to change the system in areas where a business already has a
competitive advantage. In a situation like this, an ERP system is too generic to fit the specialized
business or specialized process.