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ERP Present & Future

ERP Present & Future, ERP current trend, future directions in ERP, divergence between Back Office & Front Office

Current Trend

  1. Large Organizations:
    1. Enhancing existing solutions to incorporate front office solutions and supply chain solutions and having the solutions internet enabled to move towards business
    2. One vendor cannot solve all business problems hence collaborative solutions will be the best way forward


  1. Mid size organization
    1. 5 % Mid sized organization are planning to implement ERP, which when translated into absolute numbers mean volume business

Future directions in ERP

•ERP continues to dominate back Office Practices
•There is an increasing demand for innovative applications like E-Commerce, SCM, and HR/Customer self services
•ERP applications are complex, multi module suites of Business Management Software

New Markets
•Vendors are supplementing their direct sales force with reseller channels
•Lowering entry price of the software to make it financially viable for SMEs
•Reduced Functionality
•Improving the Implementation methodologies for faster deployment
•Porting the products to platforms such as Microsoft Windows NT

•New Channels
•SAP AG, Oracle, Baan are building reseller channels both in US & worldwide.
•To reach smaller businesses, ERP software is made financially more attractive by lowering the entry price point for each module & by ramping up the Total Cost by basing the Price on User Licenses
•Oracle is offering software for middle market from companies such as Platinum Software & Great Plains Software.

•Faster Implementation Methodologies
•ERP Implementation is difficult
•May require complete change of IS Infrastructure say Mainframe to UNIX platform
•No. of core business processes are being reengineered simultaneously
•Vendors are offering lore effective tools & methodologies to speed up the process.
•Creating elite consulting teams to intensify resources when required
•Using model based approach
•Opening up their systems for easier Integration
•E.g. SAP has introduced Accelerated SAP (ASAP)
•Reduces Implementation time to < 6 months
•Oracle’s FAST forward helps speed up the Implementation, nail down the costs up front
•Despite availability of new channel partners there is a dearth of skilled consultants.

•New Business Segments
•Variants of ERP to Service vertical markets
•Specialized areas such as SCM , CRM etc.
•Specialized areas such as Demand Forecasting, Sales Force Automation
•PeopleSoft bought Red Pepper Software to enhance its SCM offering
•Baan acquired Aurum Software for its CRM tools & also teamed up with Hyperion Software to strengthen its Financial Modules.

•Web Enabling
•Vendors are forced to move from Client / Server to Browser / Server architecture to web enables their software
•Deliver Self Service & E-Commerce capabilities
•BAAN is working to deliver a JAVA based Web Interface
•Baan is also focusing on automation of Supply Chain relationship via Internet, on E-Commerce via Microsoft Merchant Server (Site Server) & on using Hyperion Software Corp.’s Spider man technology for report & alert distribution across Web.
•PeopleSoft is set to deliver its Universal Applications JAVA based self service applets

•Market Snapshot
•PeopleSoft has not made wrong move so far
•Baan has the mentality & result to become one of the top three player
•Oracle has focused on middle market clients
•JD Edwards seem to be in the most vulnerable position
•We may see many more acquisition
•Baan Aurum deal - an increasing focus on the Microsoft Back Office platform
•No one wants “Just ERP” anymore
•Emerging trend is Integration with cutting edge technologies such as SFA, CRM, E-Commerce
•Divergence between Back Office & Front Office functionalities.

ERP Present & Future

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