Extended ERP: The path of least resistance?
Published: 12 Dec 2003 12:10 GMT
Generally, the functionality of extended ERP suites won't match up to the best-of-breed alternatives. But in many cases the functionality will be good enough. "If you buy best-of-breed you might get a better package but you have to get it all working together and build all the links," says Brown.
The ERP vendors are investing big bucks in bridging the gap between their products and best-of-breed competitors. In the three years that Sven Christiansen has been using Axapta the product has improved dramatically, says Brown, and the company has been able to customise the application in areas where it meet their needs.
Functionality shortfall
Any performance gap is minimal, believes Ray Barratt, head of CRM with SAP UK. "We're able to do the whole range of CRM, from call centres to portals and self-service -- with the added benefit that everything can be linked to the back office," he says. In addition, the current generation of extended ERP is more flexible and open than earlier products, Barratt believes. The current version of MySAP allows users to link into virtually any other Web service application and is compatible with J2EE and .Net, the two leading web service protocols.
For most companies, any shortfall in functionality is likely to be outweighed by the benefits of improved integration, says Chris Deacon, head of business process consulting at CSC. Deacon argues that in nine out of ten cases, companies simply don't need to look any further than Oracle or SAP. 'It's just so much easier to take the path of least resistance, and there's virtually no difference in functionality,' he says.
Over budget
But not everyone thinks the demise of best-of-breed is a foregone conclusion. A recent report from AMR Research found that the average cost of implementing extended ERP modules was $1.5m and that typical projects went $100,000 over budget. Only 13 percent of companies surveyed by AMR said extended ERP had saved them money – although the software offered benefits such as improved collaboration with partners.
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