You’ve surely been there: A department approaches you with what seems like a trivial ERP request, which later turns out to be an expensive and frustrating customization. For example, when the sales team needs an additional field in the quotation process for the estimated delivery date—automatically calculated from detailed scheduling.
Technically speaking, it’s really not rocket science. Nevertheless, your ERP provider needs three weeks to estimate the effort and quotes around 8,000 euros for the custom ERP adaptation. At the same time, you know that with the next release, you’ll have to retest this exact custom development—and possibly migrate it.
It is therefore only too understandable that many companies today no longer want to be forced into lengthy customization projects for every minor technical change. The good news is that there is a middle ground between rigid standard solutions and time-consuming custom development. The solution is low-code ERP.
What does “low-code ERP” mean—and what doesn’t it mean?
What is Low-Code ERP?
Low-code ERP refers to a modern enterprise resource planning system that can not only be managed but also actively customized. You can adapt processes, user interfaces, rules, and user interactions with significantly reduced development effort, without having to delve deeply into the source code. All changes are made within an architecture designed to support releases and updates.
What is low-code ERP not?
A common misconception lies behind the idea that low-code allows any employee to code —regardless of whether they have technical expertise or not. In reality, however, a low-code platform is a tool for technically savvy users under the governance of IT leadership—for example, in the context of structured citizen developers.
Similarly, the term “modular approach” falls short. Low-code in the ERP context should not be confused with simply clicking functions together. Rather, it is about controlled extensibility within clearly defined boundaries. IT decides which interfaces, data models, and logic may be extended—thereby ensuring that these extensions remain maintainable in the long term.
Low-Code vs. No-Code vs. Traditional ERP Customization
The discussion surrounding low-code platforms can only be properly understood if we consider it in the context of existing approaches. Between “no-code” on one end and traditional customization on the other, a new area has emerged that offers an interesting middle ground.
| No Code | Low-Code | Classic Customizing | |
| Objective | Functional adjustments without programming | Rapid, controlled expansion of processes, logic, and user interfaces | Maximum Customization Through Development |
| Target Audience | Departments without in-depth IT expertise | IT, developers, tech-savvy professionals (citizen developers) | External service providers or in-house developers* |
| Technical Approach | Purely configuration-based, without interfering with the logic | Configuration and scripting within defined system limits | Direct modifications to code, the data model, or standard processes |
| Flexibility | Limited to predefined options | High, within the designated expansion points | Very high, theoretically unlimited |
| Readiness for Release / Readiness for Update | Depending on the platform approach | This is generally the case, since extensions are implemented in a manner consistent with the system | Often a point of criticism, since individual adjustments must be made |
| Speed of Implementation | Very high | High | Low to medium |
| Suitability for Core ERP Processes | Restricted | Very well suited | Well-suited, but requires a lot of effort |
This comparison highlights the extent to which the various approaches are suitable for core ERP processes:
- No-code ERP quickly reaches its limits when it comes to more complex processes, dependencies, or integrations across interfaces.
- While traditional ERP customization offers maximum flexibility, it is often too slow, costly, and too time-consuming in terms of release and update compatibility.
- Low-code ERP is the interesting middle ground. It’s a modern approach to ERP systems that allows for process-oriented, controlled, and cost-effective further development. For many medium-sized companies, this creates the necessary flexibility between rigid off-the-shelf solutions and custom projects.
Werner Hießl, Asseco Solutions
The key benefit is that, with a low-code ERP system, your company can respond to new requirements more quickly and in a more controlled manner than with the traditional customization model.
What Low-Code ERP Means for Your IT Costs and Response Time
Declining adjustment costs
With traditional ERP customization, a single adjustment can easily require several weeks of lead time and a four-figure budget. With a low-code ERP, on the other hand, you can often implement the change within a few days —using significantly fewer resources. With many small customization projects throughout the year, this allows you to achieve significant savings.
Declining Update Costs
ERP customizations implemented within the intended low-code limits do not need to be migrated with every update. This means less rework, less dependence on the vendor, and less coordination effort with external service providers. This, in turn, allows for better planning of IT costs throughout the system’s lifecycle.
Increasing Time-to-Value
The third—and arguably most important—point is speed. When departments don’t have to wait months for a productive solution, but only a few days, this not only speeds up processes within your company but also enhances your ability to respond to market changes, customer requirements, and opportunities for internal optimization. This results in a clear competitive advantage for your company.
A study conducted by techconsult GmbH in collaboration with USU Software AG also shows that the primary focus of using low-code platforms today is on accelerating application development. According to the study, 65% of the companies surveyed use low-code strategically to shorten development cycles and drive innovation more quickly.
When Is Low-Code ERP Worth It—and When Isn’t It?
Low-code ERP is a good choice in these cases
✓ Your line-of-business departments regularly need to make minor adjustments to processes, forms, or logic.
✓ The ERP system’s ability to be released plays a key role in your company.
✓ You have a small IT team and limited resources.
✓ You want to reduce your dependence on your ERP provider.
✓ Your company wants to actively improve its processes rather than put up with static forms and expensive custom solutions for years on end.
In these cases, low-code reaches its limits
Low-code truly shines when existing functionality is configured and assembled—that is, for user interfaces, process flows, and input fields. What low-code cannot do, however, is develop specific, complex business logic. For example, anyone who needs to implement a variant configurator with in-depth costing logic will quickly reach the limits of this approach. That’s because this is no longer about configuration—it’s about development.
Adaptability as a Selection Criterion: 5 Questions for Every ERP Provider
Would a low-code ERP be a good fit for your company? If so, you’ll need to be careful when selecting a system. After all, only by asking the ERP provider the right questions can you determine just how future-proof and flexible the ERP actually is. Be sure to address the following 5 points:
1. What ERP customizations can I make without modifying the source code?
This question focuses on the nature of modern ERP architectures. Which processes, approvals, interactions, and user interfaces can be flexibly configured within the standard framework? The more options available here, the less likely you are to end up in traditional customization projects.
2. Will my customizations be preserved after a version update?
Further developments are sustainable only if the ERP system remains release-ready. Otherwise, you are merely shifting the effort—from the initial implementation to recurring migration and testing efforts.
3. Who can make adjustments—only your consulting firm, or our in-house team as well?
This question helps you assess your dependence on the vendor. A modern ERP system should be designed so that you can implement changes yourself using internal resources. On the other hand, it’s not ideal if you have to bring in external developers for every enhancement.
4. Is there a visual configuration environment, or do I need developers for every change?
This question is all about efficiency: How quickly and cost-effectively can ERP customizations actually be implemented? A suitable environment makes it possible to rapidly translate business requirements into production-ready solutions. Your team shouldn’t be forced to dive deep into development for every minor enhancement.
5. How do you distinguish between configuration and customization—and which do you recommend in which situations?
When evaluating the response, make sure the ERP provider clearly distinguishes between these two approaches and can provide you with clear information. Ensure that as many requirements as possible can be met without modifying the program code. If, on the other hand, the provider frequently recommends custom ERP configurations, you should be wary.
Low-Code in Practice: Flow Mode in the APplus ERP System
The Flow Mode in the APplus ERP system serves as an example of how the low-code concept can be implemented in a forward-looking way. The focus is no longer on customizing individual fields. Rather, it is about creating configurable processes, flexible interfaces, and intelligent user guidance.
Specifically, Flow Mode allows you to:
- the rapid digital mapping of business processes, analyses, and individual requirements within the system
- the customized design of interfaces, inquiries, approvals, and workflows throughout a process
- the integration of AI and LLMs into a wide range of processes
In plain language, this means that interfaces adapt to the process framework so that users can complete their tasks quickly. This shifts the focus from static screens to dynamic, process-oriented user guidance.
The flow-oriented approach is therefore no longer just about managing data, but about actively shaping process logic. By guiding employees through workflows in a targeted manner, the system provides them with tangible support in their day-to-day work. And that ultimately has a positive impact on your company’s overall efficiency. The focus is on the people. Equally important are the people in HR management and leadership who use the software to work effectively and draw on data to make better decisions for the organization’s future.
Webinar on Flow Mode in Practice
Learn how to get the most out of Flow Mode in your daily life through several customer use cases.
Conclusion: Low-code ERP is becoming the new standard
Low-code ERP isn’t just a fad—it’s the logical response to increasing market pressure. Today, systems must be quickly adaptable without compromising their release readiness. Only then can companies respond swiftly to new requirements and stand up to the competition.
The key question is to what extent a software solution can be expanded out of the box without requiring extensive customization. Ultimately, the future-readiness of an ERP system is demonstrated by its ability to facilitate change during ongoing operations.
To ensure you ultimately choose the right low-code ERP solution, it’s best to bring the five questions from this article to your next meeting with a vendor. That way, you can find out just how flexible the application really is.
