The Solution of Current ERP Programs
The architecture of most ERP systems may be termed the “total package approach”. All customer-specific functionality must be included in the “main” single-layer package. A “customizer” is provided to “tailor” the package to the customer’s needs out of the massive “main” package. However, the “customizer” is limited in the scope and type of modifications that can be offered. Any functionality that requires “add-ons” of tables, columns and -- more importantly -- logic, has to be incorporated by the vendor’s development team into the “main” package.
Obviously, meshing the specific needs of thousands of customers into a single coherent package is a nightmare even for the most talented system analyst. That scarce resource of system analysts who can do the job becomes a real bottleneck for customer requests. Implementation processes could drag on for months and years as customers “wait their turn” for their own modifications to “clear” the vendor’s development team.
Complexity also prevails during the implementation process at a customer site. It takes a top quality expert to sift through a mature “main” package incorporating a massive volume of functionality so as to “tailor” processes as required by the customer. Although some vendors have invested heavily in trying to simplify that process, it still takes a large amount of time and effort to do the job.
Thursday, July 8, 2010
The Problem of ERP Implementation
The Problem of ERP Implementation
Because of the need to adapt the generic software to the specific needs of the firm, ERP vendors were required to provide tools and utilities that will allow the firm’s in house IT personnel or independent consulting firms to customize the software. Actually, customization and implementation of ERP software became an industry on its own. AMR Research Inc. estimates that 75% of the ERP market size relates to programming and consulting services for the implementation of ERP in the organization. The customers also spend several times more money on ERP associated services compared to the purchase of the software license. The industry standard is 3 to 5 between amount spend on software purchase versus amount spent on software customization and implementation services.
With the evolution of the “Active ERP” systems, the customization issue becomes even more critical. Active ERP systems incorporate workflow, triggers and alerts as an integral part of their logic. These processes are more susceptible to be customer specific and dynamic over time (and within the same organization). The current ERP programs do not provide an adequate solution to this problem.
Because of the need to adapt the generic software to the specific needs of the firm, ERP vendors were required to provide tools and utilities that will allow the firm’s in house IT personnel or independent consulting firms to customize the software. Actually, customization and implementation of ERP software became an industry on its own. AMR Research Inc. estimates that 75% of the ERP market size relates to programming and consulting services for the implementation of ERP in the organization. The customers also spend several times more money on ERP associated services compared to the purchase of the software license. The industry standard is 3 to 5 between amount spend on software purchase versus amount spent on software customization and implementation services.
With the evolution of the “Active ERP” systems, the customization issue becomes even more critical. Active ERP systems incorporate workflow, triggers and alerts as an integral part of their logic. These processes are more susceptible to be customer specific and dynamic over time (and within the same organization). The current ERP programs do not provide an adequate solution to this problem.
Active ERP
Active ERP
“Active ERP” refers to the incorporation of triggers, alerts and workflow procedures into the logic of the ERP system. These differ significantly from one customer to another, and even among different departments of the same customer. Therefore, their effective incorporation into the ERP program is critical in a true customization of the software to the customer’s needs.
However, eventhough workflow and business rules have become almost mandatory for ERP systems, yet, all ERP systems on the market today require users to hard code (in the source code) triggers, alerts and workflow procedures that are not predefined. This forces them to recode the triggers and procedures when installing the next release (upgrade).
The unique architecture of Eshbel’s SUPERset technology (see below) enables this customization to be carried out in a most cost-efficient manner, and to preserve such triggers from one version to the next.
“Active ERP” refers to the incorporation of triggers, alerts and workflow procedures into the logic of the ERP system. These differ significantly from one customer to another, and even among different departments of the same customer. Therefore, their effective incorporation into the ERP program is critical in a true customization of the software to the customer’s needs.
However, eventhough workflow and business rules have become almost mandatory for ERP systems, yet, all ERP systems on the market today require users to hard code (in the source code) triggers, alerts and workflow procedures that are not predefined. This forces them to recode the triggers and procedures when installing the next release (upgrade).
The unique architecture of Eshbel’s SUPERset technology (see below) enables this customization to be carried out in a most cost-efficient manner, and to preserve such triggers from one version to the next.
ERP The Customization Issue
ERP The Customization Issue
ERP vendors are well aware of the need to tailor (or retrofit) their packages to the specific requirements of industries and customers. A single vendor who wishes to serve many vertical markets (industries) has three options: * To support different brands of the package – a costly and cumbersome option which was abandoned by most ERP vendors. * To mesh all brands into a single package, where “branding” for a specific industry or customer is done by parameters which are selectively flagged to adjust for their “unique” needs. This option is used by most ERP vendors. However because the vendors need to mesh the needs of different industries within a single, tightly integrated SW package, this “flagging process” makes the customization process complex and expensive. Furthermore, tailoring to a specific customer that is not answered for within the given parameters is harder still. * To provide an integrated package that permits on-site tailoring which meets specific needs. Only Priority, with its SUPERset technology, provides this option.
ERP vendors are well aware of the need to tailor (or retrofit) their packages to the specific requirements of industries and customers. A single vendor who wishes to serve many vertical markets (industries) has three options: * To support different brands of the package – a costly and cumbersome option which was abandoned by most ERP vendors. * To mesh all brands into a single package, where “branding” for a specific industry or customer is done by parameters which are selectively flagged to adjust for their “unique” needs. This option is used by most ERP vendors. However because the vendors need to mesh the needs of different industries within a single, tightly integrated SW package, this “flagging process” makes the customization process complex and expensive. Furthermore, tailoring to a specific customer that is not answered for within the given parameters is harder still. * To provide an integrated package that permits on-site tailoring which meets specific needs. Only Priority, with its SUPERset technology, provides this option.
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