The embodiments herein relate to product/application customization and, more particularly, to develop multi instance single code base product/application with centralized management. The central repository present in the system fetches and holds all differentiation information for various instances of the application. Then the synchronization framework allows the differentiation data to be available to the individual instances. Further, the application archetype provides all the services needed to adhere to the principles of externalizing require facets of each instance and ensures the right configurations are fetched from the central repository. Finally, the application is executed with required configuration data.