Shopping for ERP

Date: 12 April 2006
(ICT World)
Keith Fairhurst, from EOH Technology Consulting, cautions companies to think about their ERP shopping spend.
Enterprise Resource Planning (ERP) success is ultimately dominated by customer experience.

This is one of the main reasons why it is becoming a commodity ruled by convenience and efficiency.

If not there already, customers will reach a point where the technology is simply good enough, because it meets the basic needs of the organisation.
 
http://www.technologyevaluation.com, the first Web-native technology research enterprise, says that new technologies start out at the bottom left of the lifecycle curve, delivering less than the customers require.

As a result, customers demand better technology and more features, regardless of the cost or inconvenience.

A transition occurs when the technology is 'good enough' to satisfy the basic needs.

A new set of customers, the late majority, enter the market with a radically new set of demands.

They want convenience, efficiency, stability and low prices.
 
This phenomenon will change how vendors sell ERP and will definitely impact how customers purchase a solution.

Sounds crazy but, it is almost as if technology does not matter.

Product benefits today are very similar; it is longevity that matters, what represents the least risk and what will provide long term stability.

It is simply finding the sweet spot that is good enough.

An example of one such technology is Service Orientated Architecture (SOA), which TEC says will be the holy grail of the newly formed multi-technology society.

The truth of the matter is that functionality is no longer a critical component.

Finding an ERP solution that is simply good enough means that ROI does not always feature.

TCO is what it is about because functionality is not the differentiator - usability is.
 
TCO changes the focus from maximising benefits to minimising cost with the primary objective of reducing the disruption to your business fairly significantly.

Wouldn't it be wonderful if you could implement a new system over a weekend without anyone noticing?

Convenience factors are implementation cost minimisers packaged into systems to reduce the time to benefit, and the man-hours required to implement a system.

A preconfigured solution that can be implemented in 120 days is worth more than the blank page solution that requires a year to get running. Convenience factors can include a wide range of offerings such as:
 
* Pre-configured industry templates;
* Best practice business processes templates;
* Business performance templates;
* The SOA integration architecture;
* Concepts of on-demand and open source software;
* Integration to popular third party applications;
* Data conversion templates;
* User tutorials and e-learning on-demand;
* Internet support services and a 7 x 24 hotline.
 
So, how do you know what to look for? Consider using an ERP evaluation centre like http://www.technologyevaluation.com.

It will assist you to develop a short list of qualified products.

Simple to use, TEC categorises products by industry requirements, by business complexity, by language support, by functional scope.

It makes it easy for customers to evaluate an ERP solution according to specific criteria, and thus make the right decision.
 
Recent searches by TEC revealed that ease of implementation and ease of use have replaced the functionality inventory as the top priorities in a selection.

Efficiency also remains important, as these usability features reduce clicks and improve the user experience.
 
Moving forward, the next generation of killer-apps will deliver innovations in convenience, ease-of-use, and emotional appeal, which is more proof that we are moving into mainstream ERP.

You are not a buyer of ERP anymore. You are an investor. Product longevity matters, so think about your shopping list before making your purchase.