Difference between configuration/design and development and customization.

Hi Can anyone tell me…

What is the difference between configuration/design and development and customization.

How are they different?

If they are all same then why use different terminologies?

Thanks,

Ashly

Configuration

Configuring an ERP system is largely a matter of balancing the way the customer wants the system to work with the way it was designed to work. ERP systems typically build many changeable parameters that modify system operation. For example, an organization can select the type of inventory accounting—FIFO or LIFO—to employ, whether to recognize revenue by geographical unit, product line, or distribution channel and whether to pay for shipping costs when a customer returns a purchase

CustomizationERP vendors do offer customers configuration options that allow organizations to incorporate their own business rules but there are often functionality gaps remaining even after the configuration is complete. ERP customers have several options to reconcile functionality gaps, each with their own pros/cons. Technical solutions include rewriting part of the delivered functionality, writing a homegrown bolt-on/add-on module within the ERP system, or interfacing to an external system. All three of these options are varying degrees of system customization, with the first being the most invasive and costly to maintain

Key differences between customization and configuration include:

  • Customization is always optional, whereas the software must always be configured before use (e.g., setting up cost/profit center structures, organisational trees, purchase approval rules, etc.)

Configuration :- Setting Up the system to start the work.

Design :- A new module which needs to be developed in the system (Ex :- Design a house plan).

Development :- It is the 2nd phase of design, which needs to be developed to be used (Ex :- Build the House)

Customization :- You need some thing which needs to be added after the development of the design or change in the standard system.