Erp Alex Leon Chapter 10


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Erp Alex Leon Chapter 10

  1. 1. Future Directions in ERP Sonali C. UDIT -T.Y.B.Sc (IT) 2008-090 Chapter 10
  2. 2. New Market <ul><li>As larger enterprise becomes saturated with new-generation client server ERP system, vendors are forced to find new markets. </li></ul><ul><li>Vendors target small business client. </li></ul><ul><li>How do they attract new customers? </li></ul><ul><ul><li>Supplementing their direct sales force with reseller channel </li></ul></ul><ul><ul><li>Lowering the entry price </li></ul></ul><ul><ul><li>Stratifying their software with reduced functionality </li></ul></ul><ul><ul><li>Improving the implementation methodologies </li></ul></ul><ul><ul><li>Porting the products to platforms such as Microsoft Windows NT. </li></ul></ul>
  3. 3. New Channels <ul><li>Vendors are building reseller channels-idea is to reach smaller business that cannot afford the complete package. </li></ul><ul><li>“ Complete one-stop-shopping” </li></ul><ul><li>Making it financially attractive at entry level. </li></ul><ul><li>Oracle is very aggressive in this respect. </li></ul><ul><li>JD Edwards ventured in by introducing “OneWorld” by lower-cost line. </li></ul>
  4. 4. Faster Implementations <ul><li>Perception of vendors: </li></ul><ul><ul><li>ERP is difficult and costly to implement </li></ul></ul><ul><ul><li>ERP takes lots of time (years) to implement </li></ul></ul><ul><ul><li>Delay in the implementation is going to effect my day-to-day business. </li></ul></ul><ul><li>Vendors are thinking of making implementation easy. </li></ul><ul><li>SAP introduced : Accelerated SAP (ASAP) (reducing implementation time to six months) </li></ul><ul><li>Oracle introduced Fast Forward. </li></ul><ul><li>The main reason of delay: Dearth of fully trained and skilled consultants </li></ul>
  5. 5. Business Models and BAPIs <ul><li>Need of a tool for the implementation team can review its progress from time to time. </li></ul><ul><li>Reference Models can help the implementation. </li></ul><ul><li>Third party application to interact directly with ERP package (say SAP R/3) directly. </li></ul><ul><li>Baan offers OrgWare which is tightly integrated business modeling tool combined with business specific templates that help automation. </li></ul>
  6. 6. Convergence on Windows NT <ul><li>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. </li></ul><ul><li>SAP: over 200 R/3 installations on Windows NT </li></ul><ul><li>Baan: “Designed for Microsoft Back office” certification </li></ul><ul><li>Oracle: Touts its support for its own NT based clustering technology </li></ul><ul><li>Peoplesoft: Shows recent switch to Backoffice </li></ul>
  7. 7. Application Platforms <ul><li>The idea is to extend the reach of its software far and wide. </li></ul><ul><li>To make like an application platform rather than just a suit of modules. </li></ul>
  8. 8. New Business Segment <ul><li>provide service to vertical markets: </li></ul><ul><ul><li>Governments, Healthcare, Financial, Services, Retail environment </li></ul></ul><ul><ul><li>Also into SCM, sales automation, market </li></ul></ul><ul><li>The world is competitive </li></ul><ul><ul><li>Not only for the user (of ERP) </li></ul></ul><ul><ul><li>But also for vendors (of ERP) </li></ul></ul><ul><li>So to survive one should be on a constant look out of New Business Segments </li></ul>
  9. 9. More Features <ul><li>Vendors focuses on improving decision power. </li></ul><ul><ul><li>What is DSS? Decision Support System </li></ul></ul><ul><ul><li>What is OLAP? On line Analytical Processing. </li></ul></ul><ul><ul><li>What is ROLAP? Relational On-line Analytical Processing </li></ul></ul><ul><ul><li>What is OLTP? On line Transaction Processing </li></ul></ul><ul><ul><li>What is SFA? Sales Force Automation </li></ul></ul><ul><ul><li>What is DW? Data warehousing </li></ul></ul><ul><ul><li>What is D’Mart? Data Mart </li></ul></ul><ul><ul><li>What is DM? Data Mining </li></ul></ul>
  10. 10. Web Enabling <ul><li>vendors moves from: (architecture) </li></ul><ul><ul><li>Client/server->Brower/server->web enable </li></ul></ul><ul><li>Deliver: Self service and e-commerce </li></ul><ul><li>Platform independence: </li></ul><ul><ul><li>ERP vendors are using Java, rather than Microsoft’s Active-X </li></ul></ul><ul><li>Move away Proprietary technologies to open tech. </li></ul><ul><li>ERP vendor now embrace: </li></ul><ul><ul><li>more universally acceptable tools </li></ul></ul><ul><ul><li>Platform independent </li></ul></ul><ul><ul><li>Web functionality </li></ul></ul>
  11. 11. Market Snapshots <ul><li>SAP : The market Leader. </li></ul><ul><li>People Soft and Baan join to make the top three </li></ul><ul><li>Oracle has lately focused more attention on its applications business </li></ul><ul><li>JD Edwards depends more on IBM’s AS/400 </li></ul><ul><li>Everyone seek to fight to maintain their growth momentum </li></ul><ul><li>No one want “just ERP” – need much more advance- eg :- SFA </li></ul>
  12. 12. Market Snapshots <ul><li>The Future is clear: </li></ul><ul><ul><li>The ERP vendor which embraces the latest management tools, and incorporates them in their product would survive. </li></ul></ul><ul><ul><li>Since ERP teaches Integration to their clients, should themselves integrate these Management packets in their software. </li></ul></ul>Cont…