Page 34 - MetalForming September 2013

ERP, the Next Generation: The Final Frontier?
options, but those options were con- strained by the logic embedded in the source code.
Next-generation ERP is built in lay- ers, removed from the source code. First and foremost is the user-inter- face layer, which because it is separate can easily be tailored to what a user wants to see and how he sees it, with- out ever touching the underlying code. And, configuration (versus customiza- tion) does not require deep technical skills and carries forward as the provider enhances the software.
In addition, there might also be a set of business rules created and main- tained. These rules might be used to determine behavior of a function or to configure the next steps in a workflow. Business rules might define different thresholds for approval (e.g. all pur- chase orders require approval but those over a certain value require an extra step in the approval process). These business rules also might be used to trigger alerts, notifying managers when events occur (e.g. a big order comes in) or when they fail to occur (a sched- uled delivery date is missed).
With a next generation ERP, most perceived customization is really con- figuration.
Integration and Innovation
We include integration capabilities and new ways of delivering innovation as a single topic here because the tech- nology used to deliver both likely will be similar, if not identical. In this con- text, you will hear two terms bandied about: services and objects, both of which can be shared. We also should note a third term: components.
Software vendors originally devel- oped ERP as a tightly integrated set of modules with only one of everything, including master files and maintenance functions. Even though order-manage- ment and accounts-receivable mod- ules both needed a customer master, they shared a single master file. Like- wise, purchasing and accounts payable shared a supplier master file; and pur- chasing, shop-floor control, engineer- ing and inventory management shared
a common part master file.
Not only do all ERP modules share a
common database, but all are devel- oped using the same tools and tech- nology and they all move forward in lockstep. This eliminates data redun- dancy and any need for separate inte- gration efforts. But it also means pur- chasing can’t move forward until order management, shop-floor control and inventory management modules are ready to move. It takes massive efforts of coordination by the vendor to ensure all of the pieces of the puzzle progress together. And, it takes similarly massive coordination efforts by all departments within a customer’s organization to take those next steps altogether.
But what if a supplier or customer demands that your company change the way you conduct business, and your current ERP solution can’t support that change? Maybe you need to upgrade, enhance or even swap out the purchasing or order-management module for a new solution. This would be made simpler if the purchasing or order-management modules were sep- arate applications—although that would most likely require additional effort and cost for integration.
What if, instead, you could take that tightly integrated ERP purchasing mod- ule and loosely couple it? That way, if you wanted to replace it you would just have to uncouple it and swap in a new one. Of course it’s a little more complicated than that, but that’s the general idea.
A Basic Necessity
As the basics of ERP become more of a commodity, it becomes that much more of a basic necessity of business, including advanced technology that provides manufacturers easier access and configuration without customiza- tion, better integration and more inno- vation. And as those basics become commoditized, ERP might appear to slip into the background. While all companies have common needs, spe- cific industries create specialized needs and it also becomes increasingly important for companies to seek com-
petitive differentiation. However, core functionality is not where this source of differentiation lies, but rather in the services and functions that surround the core.
So let’s continue our Star Trek/solar- system analogy and imagine ERP as the sun, in the center of a company’s infrastructure. Circling the sun are planets drawing sustenance in the form of light and heat, which makes them habitable. Gravity holds the planets in orbit.
Now equate habitable to an ERP system’s easy access and intuitive user interfaces that can be configured and personalized. With ERP at the center of a software solar system, gravity is drawn from the platform on which the ERP is built. Building ERP and all of the surrounding applications on a common platform and standardized business objects will ensure a strong connection but with a loose coupling that can easily be disconnected and reconnected.
Key Takeaways
Next-generation ERP is a far cry from traditional ERP solutions of the past. New technology platforms allow users to engage with ERP in new and different ways with intuitive and visu- ally appealing user interfaces, which do not rely on intimate knowledge of how the system or the data is structured.
Next-generation solutions are more easily custom configured, eliminating invasive customization that prevents companies from moving forward with updates and upgrades. This is partic- ularly important as the pace of inno- vation accelerates, supported by the use of web-based services, object-ori- ented data models and component architecture.
If your current ERP solution has you stuck in the 20th century, look for a solution that can satisfy all of your basic, generic needs quietly in the background, and that is built on a next- generation architecture that supports rapid development and innovation, and rock-solid but easy integration.
MF
32 MetalForming/September 2013
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