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Thu, Mar 12, 2009 13:17 EDT

Wake Up People! Forget Twitter and iPhone Apps, and Focus on SAP and ERP Apps

Topic: Applications

Blog: Enterprise Software Unplugged

Current Rating: 5 Comments: 20

Forget about Apple and Twitter and Facebook and the Kindle for a second. Can you? I know it's difficult because they are everywhere.

Try a little harder.

OK. Now that I've got your attention, I'll try to be brief (in less than 140 characters, even): Consumer electronics and smartphone apps and Facebook are irrelevant.

They are nothing more than a costly distraction, stealing your attention from the massive problems that you, your company and the business world now face: We're in a deep recession (perhaps a depression), and your company's core IT systems are going to be called on to do more and more (with less and less).

I know that the topic of "corporate IT considerations" is not as sexy as, say, the latest and greatest at the iPhone App Store, but in times of great business peril, this is when great business applications are absolutely essential—not farting iPhone apps, nor 140-character ramblings about your plans for tonight.

I'm talking about ERP. I'm talking about business intelligence software that actually offers users insights into why customers are or are not buying—and what you can do about it. Or supply chain apps that provide deep insight into blind spots in your logistics and inventory management.

Right now, the marketing group is powerless because everyone has shut down spending. Finance? What can they do except report on the fiscal carnage. And sales folk—well, they're in tough shape too, with commissions now drier than the Sahara.

This is IT's chance to be a hero.

And I actually don't care whether you're an official IT staffer or non-IT business user. It really doesn't matter. We're all in this mess together, and there's simply no time for petty business-IT alignment dissonance. We're all in business or out of business—either way, we're together.

Now back to my original point: If only the business folk in this great nation of ours would obsess about business software and its vendors (Oracle, SAP, Microsoft and rival SaaS and open-source providers) as much as they fixate on consumer applications and devices.

Your companies are spending millions (and in some of the bigger cases, billions!) on these software packages and application suites that constitute the core, back-office systems that run everything now. And yet there seems to be a general ambivalence about enterprise software and about companies such as SAP.

But I would ask: Has there ever been a time when SAP, Oracle and the other enterprise software vendors that are essentially running your company have been more important?

A time when you should be grabbing legal and key managers to review all IT contracts and licenses with the utmost of diligence (how many seats do we actually need)? When you should be hammering your vendors on pricing considerations and SLAs and asking them exactly what kind of innovation you're getting from paying their exorbitant maintenance fees? When you should be listening to—and not slamming the door on—SaaS vendors that can, in many cases, provide immediate wins and valuable business insight? When you should be ditching any corporate IT systems that aren't adding value? When you should be strategizing about the cornerstone business applications—whether from Microsoft or Google—that will allow your company to emerge from 2009 and be ready for 2010?

Has there ever been a time when enterprise software vendors have been more important? No, I think not.

You do not have flash or javascript support.
Average (2 votes)
5
 
 
Thu, Mar 12, 2009 18:52 EDT
Posted by: SoftwareSweatshop
Rating: 70

I saw the title of this article in my RSS reader I knew who wrote it, before even opening it up. You're a good writer Thomas and your topics are on point.

Raza Imam
http://softwaresweatshop.com

 
Fri, Mar 13, 2009 0:34 EDT
Anonymous user
Posted by: Brett Gardner Bonner
Rating: 90

Today I wrote a blog post about my ambivalence to ERP.

Has there ever been a time where enterprise software has been more relevant? Yes, its relevant because we're asked to rationalize everything; with enterprise software implementations at the top of the list.

Do we _really_ need this system/service? Does it _have_ to be from this vendor? They are charging us _how much_ each year for _what_ exactly?

These are questions that IT departments must be held to answer for the business. IT departments, compared to Marketing for example, have long been immune from drastic budget cuts - mostly because of the switching costs of a built-out infrastructure but also because of the IT esotericism we promote.

Yes, the exciting things happening in the consumer/web space right now are sexy. But its noise to fill the void, and this void won't be filled by hawking enterprise software to the business. IT departments should be implementing things like SaaS, Cloud Computing, and open source as solutions for the business. Things that take little (if any) capex and can be implemented relatively quickly, unlike most enterprise software solutions.

 
Fri, Mar 13, 2009 12:06 EDT
Anonymous user
Posted by: Emil
Rating: 90

I completely agree to this. It is not about devices. It is making your people more productive. One of the key disctractions is the non-integration between enterprise applications and desktop applications. Integrating them would earn the company so much money. Aberdeen Group (Do more with less - merging enterprise applications with desktop tools) and The Economist (enterprise knowledge workers; understanding risks and opportunities) have written really nice research documents on this.

they have found out that 97% of the respondents use e-mail as their first application and that 66% of the people need to find a workaround to find the information they need to find in a combined enterprise and desktop application.

The companies that are successfull integrating the two types of applications increased the margins with 21% while the laggards lost 1% margin.

Also best-in-class companies reduced the time-to-decision with 27% while laggards didn't decrease this at all.

 
Fri, Mar 13, 2009 12:55 EDT
Anonymous user
Posted by: Anonymous
Rating: 90

Thank you! I have been in the software industry for for over 20 years and mostly in marketing. This is the best article I have read in a long time. Finally someone clearly communicates what needs to be said. Never has there been a time when the business and IT communities need to focus on what matter most - business software that runs the business. Thanks.

 
Mon, Mar 16, 2009 10:21 EDT
Anonymous user
Posted by: Anonymous
Rating: 50

the 'enterprise' is fairly corrupt, ignorant, underpaying, political entity that as a whole not only greatly undervalues and under-compensates IT but also tends reduce in force. aside from the socio-economic dilemma of doing anything for the enterprise, erp in its current incarnation is something from the binary stoneages retro-fitted to the distributed, cloud or not, world. sadly, SAP and Oracle think a web interface accomplishes that.

your article indicates that you seem just as uninspired as the major vendors and have totally bought into the erp myth. maybe you ought to look at the architecture of twitter and face book and their API's to understand the enormous potential, even, or especially, for enterprise app's. of course, that's assuming the ERP is a valid design concept, which in itself is questionable.

from an economics perspective, though, working for the enterprise pays jack shit; a good iphone-type app even at $0.69/pop has got the money rolling in a month than a year's IT pay. demand and supply, my friend, and as far as i can tell, there is little legitimate demand from the enterprise for good to hi-end developers and all their 'demands' and 'social ineptitude' (the latter being a separate topic).

bottom line: enterprises treat and compensate developers poorly, provide undesirable work-environments, and generally tend to (out-)source the 'real work' to consulting firms that have no ability or interest, for that matter, to employ capable developers. so while IBM RIFs and offers relocation to some third-world country and third-world pay, silicon valley companies are moving parts of their development environments to desirable locations at Developed country pay, heck, even SAP has spain and portugal offices at German pay, and entrepreneurial opportunities, such as iphone and andriod, abound ...

later,
robby
guernsey/nadi, viti levu
formerly manhattan, nyc

ps: last time i checked, the enterprise insists on on-site appearances in largely undesirable locales. vive la app store.

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All that's right and wrong with the business of enterprise software: A cold, hard look at ERP, CRM, BI and Supply Chain applications.

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