Chapter 10 Future Directions In ERP

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Chapter 10 Future Directions In ERP

  1. 1. 7/3/2010 Chapter 10 Future Directions in ERP Sonali C. UDIT -T.Y.B.Sc (IT) 2008-090 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. 1
  2. 2. 7/3/2010 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 2
  3. 3. 7/3/2010 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 3
  4. 4. 7/3/2010 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 Cont… 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. 4
  5. 5. 7/3/2010 5

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