Erp Alex Leon Chapter 10
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Transcript of Erp Alex Leon Chapter 10
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.
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
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
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…Cont…