Generic ERP vs. specific ERP
Generic ERP vs. specific ERP
When people created inventory control system to assist the business processes focused on maintaining the appropriate level STOCK in 1960s, it declared that information technology has been generated and successfully involved the business operation of enterprises. Also, it played a key roll in increasing the competition ability for enterprises. Later, inventory control systems evolved and turned into a MRP (Material Requirement Planning) in 1970s, MRP II in 1980s, ERP (Enterprise Resource Planning) in 1990s, and ERP II in 2000s. Virtually all of the top 1000 enterprises in the world have implemented the ERP system. ERP could really help enterprise to manage business processes such as marketing, production, purchasing and accounting in an integrated way, and record all the transactions in a common database which allow different modules to share the real time data.
In the early period, when most of ERP software was built up by vendor, it didn’t focus on a particular manufacture type or any specific industry. But now, the customers need ERP functions to match their specific function requirement. There are three main layers in system architecture of one solution as database, system platform and application. So, that would be a very huge work or even impossible for the ERP vendor try to make the generic ERP to be fit the specific manufacturing requirement from customer. For example, for injection and molding production, we need system could have capability to track regrind, scrap, runner, flash, waste, purge, and with super B.O.M function. The R3 solution of SAP may be the only one of generic ERP which could take care all the specific requirements of manufacturing. But, how many enterprises of specific industry could afford purchasing and maintaining a R3 for their business? Also, we believe one of the main ERP implement failed reasons is selecting unsuitable ERP solution by clients.
Too many generic ERP solution vendors sold and implemented ERP for specific manufacturing clients. They tried to modify, customize or create new functions with their existing generic ERP solutions for satisfying customer’s request. But, the failed rate of that kind of ERP implementation is very high, and cause enterprises bog down on serious situation. Therefore, how to select a correct and suitable ERP solution for ERP prospects is the most important thing before contract signed. Is there any ethic responsibility for software vendor? To pick a suitable car by using purpose such as sedan or sport utility is not a tough job for people because people are familiar with the specification of vehicles. Therefore, it is not going to happen that car dealer try to modify a sedan to be a sport utility for customer. But, software vendors didn’t admit the limitation of their product. Is information technology real powerful to cover anything for client? We have already gotten the answer when we face the statistic number of ERP implementation. Or, are we going to work on this issue to generate more regulations to protect customers, and raise the rate of ERP successful implementation? I think we should do that.