A WAKE-UP CALL | ‘Stone-age’ ERP package for the insane

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Yes, everyone, choosing business software is like a scene out of “Dumb and Dumber”. And nothing can be more obvious to this fact than witnessing IT managers in today’s era of interconnectivity choosing and investing millions of pesos in ancient enterprise resource planning (ERP) software to run their business.

ERP is a critical technology element, especially in large enterprises, to piece together crucial processes that keep their organizations up and running. Software companies work with third-party partner integrators to roll out ERP in companies that need in managing important business data to allow management to make informed decisions and employees to do their jobs more effectively. It is packaged as a suite of applications that normally cover corporate governance, business intelligence, distribution, customer relationship management, e-commerce, enterprise asset management, procurement, sales, financials, and production.

Yes, in any way you look at it, it is a monster. One suite is designed to automate all aspects of your business processes—from the supply chain to the actual interface with customers. This includes managing the manpower you enlist to the payables you need to collect. As these distinct parts try to integrate or mesh with one another, it is expected and quite understandable that problems arise.

Most of these issues stem from stone-age features that have no place in today’s inter-connected marketplace—leading organizations that use such backward ERP packages to experience unforgivable downtimes, risking the integrity, credibility, and worse, security of the business data being processed.

The question that keeps on bugging us is why top IT managers continue to choose the prehistoric and leave their organizations open to these risks? They continue to invest millions of dollars for packages that keep them in the past of enterprise computing, wherein on-premise solutions entirely subsist on wasted resources, leaving them in the red. And why do they continue to keep their jobs for not acting or even knowing what’s best for their business? Indeed, this is a moronic tale of ignorance and irony.

Yes, these “stone-age” packages exist in the modern, Internet-driven, mobile device-run world. Sadly, vendors of these ERP packages aren’t even flexible enough to adapt to modern times, much less redevelop or repackage their offerings to suit current needs. This leads to a monstrosity of problems for the organization to deal with—leading them to lose out to competitors, which have adopted early to breakthrough innovation that have since transformed ERP to an easy to deploy, cost-effective solution. This includes having ERP reside in the Cloud such as those provided by Netsuite among others — realizing incredible benefits for businesses, who need not invest an arm and a leg, and even dedicate staff or hire expensive third-party workforce just to integrate and maintain the software.

This is also true with other online products that offers reliable, scalable, and inexpensive cloud computing services like the ones coming from Amazon Web Services, which target large enterprises and SMEs (AWS) as well. In this age of the “Internet of Things”, being in the cloud is an essential factor in moving forward.

So why do some foolish IT managers continue to choose stone-age ERP solutions? Blame that on being ill-advised, ill-informed, and their tragic blindness to the risks involved in making that decision. And, with a recent incident that made a bigtime, now jobless IT manager decide on “migrating” to a more archaic ERP solution from an already rearward package, leading to hundreds of millions in losses for the poor conglomerate—this is not just incompetence.