Add-on solution versus document coding
Evergreen divides opinions
The transition from on-prem ERP systems with occasional up – grades to constantly updated and evergreen solutions marks a par – adigm shift that significantly affects ERP projects and the choice of add-on solutions.
Previously, the implementation period was long. Now it’s shorter, while the operational period becomes long without “upgrades” but with smaller and more frequent updates. This has a significant impact on ERP projects and the choice of add-on solutions. Consequently, the customized solution takes a back seat and “standard” is left as the shining guiding star in the cloud. It’s easier, it’s cheaper, and it suits an ERP system that the manufacturer updates automatically a few times a year.
But is standard the answer to everything? And what happens to the ISV solutions that have been and still are an important part of many ERP solutions?
We spoke with two seasoned professionals in the ERP industry, and their approaches to standards, coding, and ISV add-on solutions are different.
Henrik Flindt
Director of ERP, Finance, & Operations at 9Altitudes
John Sinnbeck
Vice President at Columbus
“Try standard, and then we can see if it works”
“If someone at C-level thinks that after twenty years of developing and adapting their ERP platform, they can now just use standard, then there’s something they haven’t fully understood. It’s a game changer they’re facing!” Despite these reservations, Henrik Flindt has no doubt about the main goal of the evergreen era:
“My approach is that if you don’t use standard in the cloud, you’re shooting yourself in the foot.
But our job as a vendor is to make the customer understand that they are embarking on a journey
with standard and that this solution requires starting in the right place.
We tell the customer, ‘Try standard, and then we can see if it works.’ We shouldn’t start treating any symptoms from the beginning but find out if there is a problem and what to do if there is,” says Henrik Flindt.
Best-of-Breed lets us build documents for different countries, so we can concentrate on what we do best”
His colleague, John Sinnbeck at Columbus, has the exact opposite view. He is responsible for Columbus’ Microsoft Dynamics business in Denmark. Columbus is a global digital business partner and has completed 9,000 projects for 1,100 customers over the past thirty years.
John Sinnbeck plays a key role in setting the overall framework for ERP projects. And evergreen doesn’t seem to have changed his overall view on add-on solutions versus coding documents in the standard solution: “Ten years ago, Microsoft phased out the report generator we used for documents in 80% of projects and we needed a different solution,” he says.
“I attended a conference where I heard a presentation about a Best-of-Breed solution, and it was a wake-up call. I realized that here was a template where you could build documents for different countries” says John Sinnbeck. “The supplier comes with a package solution, so we have to do less ourselves. It works well. At the same time, we can concentrate on what we do best.”
“We include the documents from the start in all our projects and set aside a budget that we know from experience covers the classic external reports,” he adds. “This approach is smart for several reasons. Firstly, Output Management is made visible at the start of the ERP project and gets the same importance as other key areas. Secondly, a budget is allocated to it, and thirdly, it’s impossible at this stage of the project to have an overview of all the documents needed.”
However, it’s not guaranteed that the end result will be a solution outside the ERP system. Once the project is launched, a scoping day is planned to find out how many documents the company actually has and to determine which Output Management solution would be optimal.
“Some customers can get by with the standard solution, while others need Best-of-Breed. We don’t subscribe to ‘religious’ views on Best-of-Suite or Best-of-Breed,” says John Sinnbeck
“Customers want to drive a nice car very quickly. But in reality, they start on a bicycle, which after a while turns into a scooter. They won’t be driving a car until much later”
Henrik Flindt on how standard creates a gap in expectations. However, Henrik Flindt encourages the customer to see what can be done with the standard solution before potentially choosing an ISV solution for their documents. “If the customer has very advanced documents for business reasons, it may be necessary to go beyond standard. For example, if there are customer-specific invoices that can be easily customized in an external solution but would require the creation of a new invoice for each customer in the standard solution.”
He saw the light in Best-of-Breed but isn’t “religious” about it
John Sinnbeck plays a key role in setting the overall framework for ERP projects. And evergreen doesn’t seem to have changed his overall view on add-on solutions versus coding documents in the standard solution: “Ten years ago, Microsoft phased out the report generator we used for documents in 80% of projects and we needed a different solution,” he says.
“I attended a conference where I heard a presentation about a Best-of-Breed solution, and it was a wake-up call. I realized that here was a template where you could build documents for different countries” says John Sinnbeck. “The supplier comes with a package solution, so we have to do less ourselves. It works well. At the same time, we can concentrate on what we do best.”
“We include the documents from the start in all our projects and set aside a budget that we know from experience covers the classic external reports,”
he adds. “This approach is smart for several reasons. Firstly, Output Management is made visible at the
start of the ERP project and gets the same importance as other key areas. Secondly, a budget is allocated to it, and thirdly, it’s impossible at this stage of the project to have an overview of all the documents needed.”
However, it’s not guaranteed that the end result will be a solution outside the ERP system. Once the project is launched, a scoping day is planned to find out how many documents the company actually has and to determine which Output Management solution would be optimal.
“Some customers can get by with the standard solution, while others need Best-of-Breed. We don’t subscribe to ‘religious’ views on Best-of-Suite or Best-of-Breed,” says John Sinnbeck
Business needs can require an add-on solution
Henrik Flindt is not “religious” either. He emphasizes that standard is always the first choice and that, in his opinion, it makes no sense to provide advice beyond standard. However, if a Best-of-Breed solution is necessary to best meet the customer’s needs, Henrik Flindt encourages looking at different products and, above all, getting references.
Also, there are actually products on the market that “aren’t doing too badly,” as he puts it with moderate North Jutland enthusiasm. “But it needs to be challenged because there is a big
difference between those who can build beautiful documents and those who know something about the data model in the ERP system,” says Henrik Flindt.
“It’s important to be aware that the data model in the cloud, which forms the basis for the documents, changes occasionally when the system is updated. And in a situation where you choose to go beyond standard, I recommend that you discuss documents with the ISV, and data with us,” says Henrik Flindt.
He advocates for a partnership where the ERP and ISV supplier, together with the customer, find the right solution. “It’s not a ‘battle’ between different solutions. Ideally, it should be about building a team spirit around the ERP project and, through honest and sincere dialogue, find the right solution together,” says Henrik Flindt.
Just like in all other parts of the ERP project, Henrik Flindt encourages the customer to see what can be done with the standard solution before potentially choosing an ISV solution for their documents. “If the customer has very advanced documents for business reasons, it may be necessary to go beyond standard. For example, if there are customer-specific invoices that can be easily customized in an external solution but would require the creation of a new invoice for each customer in the standard solution.”
Although the two ERP experts, John Sinnbeck and Henrik Flindt, may not have the same approach to standard and document management, ultimately, it’s about supporting the customer’s business that matters the most