Tag: erp mrp

The Shrinking Landscape of ERP

Chris Shaul

Now that Oracle has gobbled up its competitors, Peoplesoft and JD Edwards, and has aquired Seibel CRM, there is a shrinking landscape of Tier 1 vendors available in the marketplace. It used to be the old JBOPS (JD Edwards, Baan, Oracle, Peoplesoft, and SAP) that people relied on as the playing field for their selections. Now, you have Oracle and SAP battling it out at the top end. SSA Software is working at bringing Baan back to the game under the name SSA ERP LN, but the market has not yet recognized the “new Baan”. So essentially there are now three players in the Tier 1 space.

SAP and Oracle are continuing to compete on the extensiblity of their solutions. SSA is making some buzz in the market too.

So the question is, will there be more variety or options, or will it be more of the same. If it is more of the same from each of these three players, then who will companies turn to? One possible answer in the future will be Microsoft and their Axapta (Now called Dynamics AX) product. But that product is still a few years from being a true Tier 1 competitor. The advantage with the Microsoft solution is very flexible technology that allows solutions and modifications to be built around the product core easily, without breaking the upgrade path. This flexibility outshines the other players. The depth of the product will be their in a few years, but it is not there yet.

What about the Tier 2 players? Can QAD, Epicor, or Infor produce a competing product? As of right now, no. It seems that is not the niche they want to play in. So for now, in the upper tier space, there will be only a few players and few options. But with everything in the IT world, a short time can reveal many new changes.

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

The ERP comeback

Chris Shaul

ERP seems to be on the move again this year. Vendors are ramping up, customers are calling again, selection projects are beginning. Why now? With all of the things going on in the world, what is it that is driving the return of ERP and technology initiatives?

This can be attributed to several factors. First is the rush to implement prior to the year 2000. In the late 1990’s, every company was working to shore up their systems to prevent the dreaded millennium bug. Companies that couldn’t patch or were not even sure about it, moved in droves to the ERP market. It was a frantic time. Now, six and seven years later, the lifecycle of those original ERP systems is coming due. Companies that implemented back then are now reconsidering their systems and are either performing major upgrades or migrating to new solutions.

Second was the freeze on IT spending in the post 9/11 era. After 9/11, companies invested in very little infrastructure and spent more of their budgets on IT security related issues. It is only of late that companies are loosening the purse strings again to invest in infrastructure and strategic systems.

Lastly, because of the IT downturn in the early part of the 2000’s, there has been a tremendous consolidation of software providers. Sage and Infor have quickly aquired a multitude of smaller software providers and are rebranding and in some cases consolidating their offerings for the small and medium enterprises. Microsoft and Oracle have recently gobbled up competing ERP offerings. Microsoft with the acquisition of Navision/Axapta, Great Plains, and Solomon. Oracle with the acquisition of JD Edwards and Peoplesoft. The result of this consolidation is a more focused message and a clearer landscape of providers. In the mid to larger enterprises, t is almost a choice of platform rather than options. You have the SQL Server camp and the Oracle camp. That is for a different article. But clearly, companies interested in choosing new software now have a smaller field of vendors to look at. Instead of a selection, it is now a choice of perhaps two ways to go.

This comeback is not without problems. Continue reading The ERP comeback

Implementing ERP Systems begins with the Selection

Chris Shaul

There are two major parts to implementing an ERP system, the selection and the implementation. The selection of the correct software is key to implementation. Selecting the wrong software can kill an implementation or at least make the project very expensive and overrun the budget. Be careful when selecting a new system. There are basic steps to a system selection.

Systems selection entails first detailing your requirements. You can do this in a spreadsheet that is divided into various worksheets for each business function. Then identify the critical success factors that the system must meet in order to be successful. You will also want to document your basic business flow to get a product or service to the client. This should be from the initial contact to the client paying for the product or service. Once you have this criteria, then you can begin looking at software.

To find the best software, you can use google to search for the vertical market place of software that you belong to. For example, you can use the search “manufacturing erp” or “distribution erp” to find the candidate software systems.

Draw up a long list of about 10 vendors that sound like they have the modules and features that you are looking for. Then start calling these vendors and talk to them. You can even arrange web demonstrations for you to get a look and feel of the software. Of course every vendor will tell you that they are the best and that they can answer every one of your needs. The trick is to have them demonstrate your requirements through a business flow of your own design.

After discussing your needs, you should have a good idea of the capabilities of the vendor. Some you will be impressed by and some you will not want to speak to again. Develop a short list of 2 to 4 vendors. Then develop a scripted demo for them to provide to you. The key is for you to develop the demonstration, not the vendor. They will only show you their best features. You want to see them demonstrate your business process.

Once you have seen the vendor’s demonstration, then you can check references and negotiate pricing. The key things to remember is that you must have your own requirements defined and the vendor must demonstrate your business flow. If they are successful in meeting your requirements and showing you that it can work, then they can be a viable candidate and you can feel somewhat assured that you are going to implement a software that is compatible with your business.

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

6 ‘must ask’ questions when buying a mid-tier ERP solution

The following articles is important for people considering looking ERP vendors. Too often people follow the salesperson blindly and do not ask the right questions. Here are 6 questions that should be part of the buying plan.

6 ‘must ask’ questions when buying a mid-tier ERP solution

Open Source ERP?

Chris Shaul

There are many vendors around today providing Enterprise Resource Planning (ERP) Software . These systems control the entire lifeblood of the business enterprise. From manufacturing to financials, from customer service to plant maintenance, these systems run the company. The information flow is critical to a company. Further the information flow must match the process flow. With many commerical ERP systems available today, how can you be sure that the ERP system you are selecting is the right fit.

Some daring folks are now trying on Open Source ERP solutions. Few of these solutions are developed or maintained by a commercial entity. Rather, many are developed by a group of programmers who collaboratively build these systems. The real benefit to these systems is that they are really open. The source code is available for all to see and modify.

With this openness, companies can truly fit the software to match their process flow. But they will need to have the coding expertize in house. They will also need to fully understand their process flows. Can you use open source without modifying code? Of course. Most of these systems have best practices built in. It does help though to know your processes and be willing to modify and improve the processes to match the best practices.

Compiere is one such software. CIO.com has an interesting article about Compiere.

Another system, in the Customer Relationship Management (CRM) world is sugarCRM. This is a full function, open source CRM system. Its functionality rivals many commerical entities’ systems.

Is open source ready for prime time? It depends upon who you ask. If you ask a Linux enthusiast, then yes it is. If you ask a traditional IT manager, probably not.

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