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10.08.08 The Value Of Solution Based ERP Offerings  By Rebecca Gill A few years ago I performed an onsite ERP software demo for a small manufacturer. It was a good demonstration, the people were nice, and it seemed like a good functional fit. I left feeling positive about the day and positive about the company. The company eventually purchased our ERP software, implemented, and they are now part of our user base. During the implementation process one of our executives asked the decision makers why they selected Enterprise 21. The answer was that we demonstrated an industry solution, not just software. And that instead of arriving with a generic demonstration, we provided examples and terminology for their industry and their business. This makes me question the value of a solution based ERP offerings. Most tier one and two ERP software products are not industry based. They have vertical markets in which they focus and excel, but certainly they are not considered an industry specific package. And while my software definitely has a stronge presence in several industries, it is also not an industry specific package. On the flip side of this thought, I often hear prospects say they are "only looking for an industry specific solution", which is code for I only want to consider packages that sell specifically to my vertical market. These statements completely and totally confuse me from a logic standpoint. If I am leading a software selection project and I limit my options to such a small segment of an otherwise large product mix, how do I really know if I am finding the right solution?
From my own personal experience, I believe companies and/or project managers who focus solely on industry specific packages fail to fully document and articulate their requirements, as well as even understand their true requirements. They focus on a smaller segment of requirements that are very specific to their industry and make that limited set of criteria their benchmark. They limit themselves from understanding the true depth and operational range that quality ERP software solutions offer. Why would I have this opinion? Because I have performed software demonstrations for these same companies and their requirements list always appears to be very limited. The companies thought this limited list was all that was needed in their new software package. When I've asked about other criteria or functionality that may be relevant, the answer is many times "Yes we need that too but we've not thought about it yet." Therefore it was not part of their original requirements list and most likely will not make it on their list. I believe they have not thought of these items yet, because they have forced themselves into a small box that is limited to the existing knowledge of software specific to their industry. While I do not believe my theory translates to every industry, I do believe it applies to many industries. And along these lines, I also do not believe every package is suitable for every industry. There is something to be said concerning process-based manufacturing software and how these packages differ from discrete-based ERP solutions. There is also something to be said for installing a software package weak in engineer-to-order functionality in a company that operates in an environment that is 80% ETO. It will not work and the relationship is destined for failure. While there is real value in reviewing packages designed for a specific industry or operational footprint, I see little value in segregating a search to only industry specific software unless an industry is so unique that there is in fact no other choice. Unfortunately, I do not believe it is always easy to make that distinction when it is your company and your industry. Comments About the Author: Rebecca has over a decade of experience in accounting, operations, project management, and enterprise software solutions. She is currently serving as vice president at Technology Group International (www.tgiltd.com). TGI is a leading provider of Enterprise 21 (ERP solution) and related enterprise business solutions for manufacturers and distributors. Rebecca also authored TGI's Software Selection Took Kit, as well as published a number of articles in both technical and industry specific publications. Read her blog at |
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