This is the main functional area of the ERP implementation. There is a bit of rtique around the configuration process and for good reason: the Holly Grail or unwritten rule of ERP implementation is, synchronizing existing company practices with the ERP package rather than changing the source code and customizing it to suit the company. In order to do so, business processes have to be understood and mapped in such a way that the arrived-at solutions match up with the overall goals of the company. But, companies can't just shut down their operations while the mapping processes take place. Hence the prototype - a simulation of the actual business processes of the company-will be used. The prototype allows for thorough testing of the "to be" model in a controlled environment. As the ERP consultants configure and test the prototype, they attempt to solve any logistical problems inherent in the BPR before the actual go live implementation.

Configuring a company's system reveals not only the strengths of a company's busfrless process but also-and perhaps more importantly -its weakness. It's vital to the health of the company and the success of then ERP implementation that those configuring the system are able to explain what won't fit into the package, and where the gaps in functionality occur. For example, a company might have an accounting practice that cannot be configured into a system or some shipping process that won't conform to the package. The company obviously needs to know which processes have to change in the process of implementation. Finding out what will work and what won't requires a knowledge of the business process itself, and an ability to work with people throughout the company. So, people with such skills should be assigned to these tasks. As a rule, in most large implementations, the functional configurations are split between the different areas within the company, so some will attend to HR, some will be involved in financials and so forth.

ERP vendors are constantly striving to lower configuration costs. Strategies currently being pursued include automation and pre-configuration. Baan for instance, has developed Orgware, an automated configuration tool, while SAP has pre-configured industry-specific templates that can be tweaked for each individual company (Accelerated SAP Solutions)
The current ERP industry push towards developing the mid-range market in turn creates an added incentive to reduce costs, encouraging the sought-after mid¬range companies to feel they can afford to implement a top-of-the-line ERP package. By creating a custom pre-configured ERP module for a particular industry - say a shoe software-manufacturing prototype created for a shoe manufacturer - the need for hands-on custom configuration is reduced, thereby keeping the costs down. It is hoped that a kind "question and answer" format can be used to find out the kinds of business process information hitherto addressed through the hands-on configuration process. In theory, these pre-configured tools should save time and money, but every business is unique and at least some configuration is unique to each project.