Wednesday, October 11, 2006

"Ever been misled by big ERP vendors?"

This was the bold text in a recent ad on a technology newsletter I subscribe. After all these years, why is there still so much angst over ERP? And if users are so fed up with ERP, why are companies still buying ERP solutions?

Well, the answer is as complex as an ERP project. Part of the answer lies in the size of ERP implementation. Another part lies in the politics surrounding big software purchases. And another part is simply process related.

It is no surprise to anyone who has done an ERP implementation when I say ERP solutions are big. And they try to do everything, literally. So, when confronted with a problem they have never seen before, the answer is, "Sure, we can do that." I have seen ERP module charts that list 100 or more modules. It is mind boggling that one software can do so much. Of course, all of these "modules" are not discrete sections of one huge piece of code. They are separate technologies that were either developed by the ERP vendor, or were part of a merger or an acquisition. For many, getting the modules provided by a single ERP vendor to work together is harder (and more expensive) than integrating software from several different vendors. The pro of course is that since the software comes from the same vendor it will be given cohesive support, with the idea that overall support costs will be lower. And, the software comes from a vendor you can trust (I guess I say that with tongue in cheek based on the headline for this post).

Politics are another major factor in an ERP purchase. The dollar amount is so high that it is a C Level executive decision. Typically the President or high ranking VP makes the decision. They see the charts with 100+ modules and are convinced that the software can do anything. Further impressed by the wining and dining by the vendor, and promises of improved productivity and huge dollar savings, executives often believe that ERP is the only software they will ever need. Many times, the implementation team finds that although the dream of the buying executive is possible, it is not within budget and there is not enough time to get it done. The pro is that there is executive buy-in.

Finally, ERP software is just not designed with process in mind. It is solution specific, and therefore deals with the process inherent to the solution. But what if the desired solution is a cross functional process? That is much harder to achieve. But the C Level executive tends to think in terms of business processes when they evaluate the software. That is how they see their business - as cross functional processes. The result is a huge disconnect that is not easily bridged. The pro is that ERP vendors are working with SOA to make process more compatible with their application modules.

I understand the benefits that ERP can bring to an organization. That is why we integrate with ERP software. But I also know that ERP application modules will someday be replaced by easy to build process based "applications" that more closely mimic the way people do business, rather than simply being an impressive dashboard of solution specific funtions. People don't care how many features there are if the can't get their work done.

Software should help people, not get in the way.

Labels: , , , , ,