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Future Directions

in ERP

Sonali C.

UDIT -T.Y.B.Sc

(IT) 2008-090

Chapter 10

New Market

As larger enterprise becomes saturated with new-generation client server ERP system, vendors are forced to find new markets.

Vendors target small business client.

How do they attract new customers? Supplementing their direct sales force with reseller

channel

Lowering the entry price

Stratifying their software with reduced functionality

Improving the implementation methodologies

Porting the products to platforms such as Microsoft Windows NT.

New Channels

Vendors are building reseller channels-idea is to

reach smaller business that cannot afford the

complete package.

“Complete one-stop-shopping”

Making it financially attractive at entry level.

Oracle is very aggressive in this respect.

JD Edwards ventured in by introducing

“OneWorld” by lower-cost line.

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Faster Implementations

Perception of vendors:

ERP is difficult and costly to implement

ERP takes lots of time (years) to implement

Delay in the implementation is going to effect my day-to-day business.

Vendors are thinking of making implementation easy.

SAP introduced : Accelerated SAP (ASAP) (reducing implementation time to six months)

Oracle introduced Fast Forward.

The main reason of delay: Dearth of fully trained and skilled consultants

Business Models and BAPIs

Need of a tool for the implementation team can

review its progress from time to time.

Reference Models can help the implementation.

Third party application to interact directly with

ERP package (say SAP R/3) directly.

Baan offers OrgWare which is tightly integrated

business modeling tool combined with business

specific templates that help automation.

Convergence on Windows NT

Growing popularity of Windows based O/S: NT, Windows 2003, Windows SP, forces the ERP vendors to make their software compatible for the latest O/S being used by the customers.

SAP: over 200 R/3 installations on Windows NT

Baan: “Designed for Microsoft Back office” certification

Oracle: Touts its support for its own NT based clustering technology

Peoplesoft: Shows recent switch to Backoffice

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Application Platforms

The idea is to extend the reach of its

software far and wide.

To make like an application platform rather

than just a suit of modules.

New Business Segment

provide service to vertical markets:Governments, Healthcare, Financial, Services, Retail

environment

Also into SCM, sales automation, market

The world is competitive Not only for the user (of ERP)

But also for vendors (of ERP)

So to survive one should be on a constant look out of New Business Segments

More Features

Vendors focuses on improving decision power.What is DSS? Decision Support System

What is OLAP? On line Analytical Processing.

What is ROLAP? Relational On-line Analytical Processing

What is OLTP? On line Transaction Processing

What is SFA? Sales Force Automation

What is DW? Data warehousing

What is D’Mart? Data Mart

What is DM? Data Mining

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Web Enabling

vendors moves from: (architecture) Client/server->Brower/server->web enable

Deliver: Self service and e-commerce

Platform independence: ERP vendors are using Java, rather than Microsoft’s Active-X

Move away Proprietary technologies to open tech.

ERP vendor now embrace: more universally acceptable tools

Platform independent

Web functionality

Market Snapshots

SAP: The market Leader.

People Soft and Baan join to make the top three

Oracle has lately focused more attention on its applications business

JD Edwards depends more on IBM’s AS/400

Everyone seek to fight to maintain their growth momentum

No one want “just ERP” – need much more advance- eg :- SFA

Market Snapshots

The Future is clear:

The ERP vendor which embraces the latest

management tools, and incorporates them in

their product would survive.

Since ERP teaches Integration to their clients,

should themselves integrate these

Management packets in their software.

Cont…

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