Jan Baan, former head of BAAN Corporation says that ERP Systems are traditionally monolithic solutions for automation of business operations. They provide a solution for a particular way of doing business and typically require a major investment in implementation and adaptation to align the solution and the business operation.
My Thoughts...
ERP is the lifeblood of most companies because the key resource they manage is cash.
I have never spoken with anyone that has implemented an ERP solution that enjoyed the project. The project crosses departmental boundaries [making it disruptive]. Because ERP software wants you to work a certain way, companies are always modifying the software. Because of the complexity of a company, an ERP project plan looks daunting. Further, because of all of the customization, the investment in your ERP solution can double or triple.
Interestingly, after the implementation is completed and people have used it for a few months, most companies are happy with their implementation. Still, when discussing ERP, there are thousands of war stories.
The future requires enterprises [as well as systems] be designed for change...
Businesses are not static - things change. These changes to your ERP just keep piling on the investment. There are no guarantees that a change will go smoothly. And at some point, integration issues will arise.
So, what are your options?
- Work with your ERP vendor to make the changes and updates. This is frequently the most expensive option.
- Charge your IT staff with making all of the changes. Still, new versions of ERP software can upset the coding that your IT staff has created. Many companies are still on back rev's of their ERP software for this reason.
- Go with a lightweight solution that integrates and aggregates information. Create a composite application [a user interface that sits on top of your enterprise software] that will display [read] only the information that users need to perform their tasks and then update [write] the appropriate enterprise software below. Upgrades are straight forward because no customization has taken place. Enhancements due to change are easy to create.
I have heard of some very large companies that have gotten very far into their ERP implementation only to cancel the project and take huge [$ millions] losses. When you have narrowed down your solutions choices, talk to their customers. More information should help you make a well informed decision.
Your Thoughts...
What has been your experience?
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