The ERP suite on a diet: Supplemented by other apps and business systems
ERP trends from an advisers perspective
Herbert Nathan – whose name is almost synonymous with ERP – has been involved with ERP for the past twenty-five years. Through his consulting company HerbertNathan & Co, and more recently HNCO, he has advised on over 400 ERP projects, written books about ERP, and is a frequent speaker on the subject.
Herbert Nathan has also introduced the digital platform Insight247, which provides transparency in the market. After the cloud revolution, which has turned the otherwise relatively peaceful on-prem world upside down for a number of years, he sees a clear trend in the development of ERP.
ERP projects are increasingly getting functionality from “outside sources”
Customers have put the once all-encompassing ERP suites on a diet and are increasingly getting functionality from “outside sources.” “We see a clear trend towards slimmer ERP solutions that work more closely with apps and other business systems. This is partly due to technology making it easier to integrate with an ERP,” says Herbert Nathan.
“It also relates to customers not wanting very large and lengthy ERP projects. They want to get started faster. And they can do that by choosing Best-of-Breed solutions.”
However, a system architecture that combines Best-of-Suite with Best-of-Breed is not without its challenges. “This approach requires careful handling of updates and generally introduces more complexity than when ERP was more of a wall-to-wall solution,” says Herbert Nathan.
“We see a clear trend towards slimmer ERP solutions that work more closely with apps and other business systems”
Herbert Nathan, ERP advisor
“One size fits all” doesn’t exist
So, what does Herbert Nathan advise when faced with a company that needs to upgrade its digital backbone, the ERP system?
How should the solution be designed? “Like most other consultants, I’ll say it depends on the customer’s situation.”
“We start with the customer’s business. What does the customer want? Where is the company headed? And ‘one size fits all’ doesn’t exist,” explains Herbert Nathan, referring to another common trend, “standard”, which focuses on aligning processes as far as possible with the ERP system’s functionality – and avoiding a lot of program adaptations.
“A broad ERP system can make sense for a medium-sized manufacturing company that can manage both production and logistics in the standard version.” But in general, it’s a good idea to look at what you have today and whether it makes sense to continue with it in a new ERP solution. At the same time, Herbert Nathan advises exploring what’s available on the market. What are the options? He refers to the fact that there are many new and exciting solutions popping up that may meet your needs in a specific area.
Choosing one or more of these solutions often provides greater freedom and flexibility as the competitive landscape changes in the market.
Putting together a solution from different components naturally places demand on the system architect. “You need to choose an ERP provider who knows how to integrate the piecesand can maintain an overview,” says Herbert Nathan.
“Documents and Reports Should Drive Projects More”
Among the many areas to be considered is Output Management, which Herbert Nathan interprets as both documents and reports – essentially everything an ERP solution should be able to generate in this area. However, this is where the experienced consultant sees the same issue as many others in the ERP world, namely that it tends to be a low priority in the projects.
“Yes, it doesn’t get much attention from the people running the projects, and customers may also think that it’s something that can be fixed later. So, we often see it being addressed at the very end, like, ‘oh well, we also need to send out an invoice,” says Herbert Nathan.
But it shouldn’t be this way. “Documents and reports should drive projects more,” says the ERP consultant. “In the clarification phase, there is a lot of focus on process-supporting functions, but you must not forget that the invoice, for example, is the face of the company,” he urges.
Prioritizing documents in general would also reduce the risk of last-minute delays on projects, ensuring this crucial area is managed efficiently.
One option is to introduce a Best-of-Breed solution. “Best-of-Breed can often solve the specific task better than an ERP system. This applies to areas such as payroll, time tracking, and also
documents,” says Herbert Nathan.
