The Future of ERP

The Future of ERP
November 15, 2006
By James Maguire

The dream of enterprise resource planning systems is that a single application can track and monitor all of a business’s functions. In a perfect world, a manager opens a single ERP app to find data about any aspect of the business, from financials to HR to distribution schedules.

Alas, we’re not there yet – or at least most companies aren’t.

Looking at the ERP landscape, “there still tends to be a lot of disparate components, that are either homegrown or older packages,” says Forrester analyst Paul Hamerman.

Moreover, there are still a lot of gaps in ERP systems, particularly in industries where ERP functionality has grown up from its historic origins in manufacturing. There are even gaps in core ERP areas, Hamerman tells Datamation, “where they just haven’t done a particularly good job, in areas like budgeting, and recruitment…where the vast majority of customer use something other than their ERP vendor.”

But despite the challenges, the movement toward a global ERP system is a key factor shaping the future of enterprise resource planning.

“It’s a trend that’s going on, and most companies are going in this direction: Read more about The Future of ERP

SSA Global’s™ – Users conference highlights future of ERP

VENDORS continue to disappear from the turbulent world of ERP software, but the message to manufacturers is not to fret, but take heart from the consolidation.

While manufacturers with ERP systems may feel uneasy about this unrest, SSA Global’s CEO Mike Greenough says it is exactly what the software market needed after a boom built on post-Y2K excesses.

Speaking at the company’s global client forum held in Florida earlier this year, he said there were so many ineffective software providers out there that it was a broken industry”.

SSA Global’™s – Users conference highlights future of ERP

Your Web Based Future

Chris Shaul

With Google and Sun collaborating to bring a web based version of Open Office to consumers, Microsoft has now jumped into the web applications game, but with bigger plans than just an office suite. How about a web based ERP system from Microsoft?

Okay, now that is nothing new. There are plenty of html based ERP systems. Some such as Oracle, are purely a virtual application, being written in Java and launched from a browser. But with Microsoft planning this, the entire desktop and user applications may change. We may have only virtual applications in the future with you only licensing what you use and need. This includes running your company on a virtual, remotely hosted system. This, as mentioned, is not new. But the difference is that you would only need a computer with light processing power and an internet connection to literally run your financials and operations.

With a powerhouse like Microsoft pushing web applications, the future of computing will dramatically change. No more will you go down to the computer store and buy boxed software. You will log into your browser, find the application you want on the Internet, and then subscribe to do your wordprocessing, spreadsheets, companies financials, enter the latest customer orders, etc.

The independence you now have of choosing what is on your computer will diminish as a few market leading applications vendors host your software. The web and software in general are becoming more and more of a utility. Just as the electicity you buy, the cable tv you watch, and the gas that heats your food are all utilities, the web and all of its applications will soon be similar. The question is, who will control this utility? The DSL providers, the Software providers, the web hosting companies? We will probably see a shift in the landscape of Internet companies. Microsoft or some similar entity will begin buying the access control points to the internet. Time Warner is an example of an early adopter. Trying to own the content and the access. But when folks are using the ERP systems and the office suites of the web, then the megacorps will want to charge for the access to and the use of the content.

For now, the one thing that is working against these plans are the fact that most companies do not want someone else having control over their data. But as the costs are reduced to a utility point of view, it will only make sense to outsource. This unfortunately will put a lot of data into the hands of the “utility” companies. Think of the marketing info they could gain and what if your company’s data is not so secure? It is a brave new world that we are embarking upon. And to have an ERP system that is hosted, maintained, and monitored by an outside entity that is not in the business of hosting, but rather in the business of providing content and access is a rather scary nightmare. But for now it is okay. We have years before this becomes a reality…maybe.

Chris Shaul is a Sr. IT Consultant specializes about ERP selections and implementations.