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Tue, Apr 28, 2009 13:45 EDT

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Posted by: Thomas Wailgum in Soapbox Topic: ApplicationsBlog: Enterprise Software Unplugged
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High-tech software and hardware vendors continually tell us that they try really, really hard to keep up with our omnivorous desire for more computing horsepower and for newer application versions offering the freshest interfaces to seamlessly bring together terabytes of 21st-century business data.
It is this heavily romanticized notion of delivering constant "innovation" to the market that has driven the technology industry to never-before-seen levels of success—and riches.
Indeed, high-tech vendors' marketing machines and sales forces have done a superb job convincing businesses that they need more, more, more. "Do you want to be innovative or not?"
As a result, many companies and their users now live in a world of computing excess. Of waste. Of confusion. Of frustration.
And that's a big problem. In my view, the computing industry and enterprise software vendors, in particular, still try to force Hummers on everyone, when what many of us really need is a Mini Cooper—make it look as cool and have it run as economically as possible, but bigger doesn't make sense across the board.
Don't believe me? Among consumer PC shoppers, look at the head-scratching rise in popularity and sales of netbooks; ya know, those lightweight, low-powered small-screened computers that Apple (the king of ridiculous excess) has dismissed as "junky." Sure, there are power users who need the horsepower of a souped-up laptop or desktop. But not everybody does.
The ascendance of the netbook proves that savvy shoppers know there's much waste and overspending in buying a laptop today. That enterprises are even considering netbook deployments—and some are—is telling.
What about the virtualization market? It walked into the enterprise via the backdoor, inching its way up from the test and dev group to the CIO's office and production servers, because IT people in the trenches knew that most of their companies had massively overbought server- and desktop-computing power. Now companies are able to tap into that excess using virtualization, more efficiently run their data centers and desktop environments, and save money.
Beyond the savings, though, heavily-virtualized IT shops find that the most valuable benefit is how fast they can move for the business, provisioning extra computing power on the fly instead of in weeks, and quickly delivering new services to business units.
In other words, less data-center server hardware truly works better for these IT groups and their businesses.
What's ERP Got to Do with It?
Which is where we come to the excess in enterprise applications, namely ERP software. Peter Thomas, a former IT executive at global insurer Chubb and veteran of many enterprise application ventures, writes in a recent blog about the excesses in ERP systems, comparing them to the plethora of unwanted and unused features included in that old, bloated standby, Microsoft Word.
"Because Word has to appeal to a lot of different users, with different needs and specialisms, it is chock-full of every single feature that anyone could ever need," Thomas writes. "However, no single person ever uses more than a fraction of these. I think of myself as a reasonably advanced Word user, but I would bet that I utilize no more than 10 percent of its capabilities."
The same type of knock applies to ERP systems, Thomas points out. "Because they include so much functionality for different companies in different industries, it can sometimes be difficult to configure them to do something as simple as entering and
Hey Thomas,
As the resident Netbook Rantor lately it was interesting to read your comparison here on ERP (a subject you have been working on these days) and I do think it is possible to draw some very real analogies to an emerging trend in Enterprise IT of examining if “good” is “good enough” in many product categories. CRM is one for example that we have been examining lately (our Enterprise has yet to do a global CRM deployment) and one where we are increasingly asking what reward a massive deployment would actually gain us when so many leaner solutions are now available or on the horizon. From a hardware side we are examining the idea of a “mini” data center at some of our locations that would consist of a Blade Server Chassis, some iSCSI storage and a completely virtualized environment where one could simply add capacity by plugging in more Blades and Disks into their respective Chassis as needed. We have already tested the concept to some extent and are looking a doing a live deployment at a new facility sometime in the next 12 months.
For me it is part of my background of supporting very small business customers as well as large Enterprises over the years, but I have always had the approach of applying “just enough” to the process of IT to meet the needs over the course of a life-cycle. I do think though that Enterprise IT does tend to get away from that philosophy on occasion and that large, heavy, software vendors still capitalize on the “big solution” philosophy.
Sometimes Size Does Matter. Sometimes Smaller, Leaner, Simpler is the right approach.
Keep up the interesting posts…
Dear Thomas,
I thoroughly agree with your comments about ERP systems. As an IT administrator who has dealt with various ERP systems over the last 20 years, I have been an advocate of leaner systems and worked to avoid chasing ERP vendor upgrades. Companies I have worked with have probably utilized 50-60% of the capabilities of their ERP systems while the vendors are pushing their upgrades and associated expenses. (In one company, they purchased 18 ERP modules: - used 12 of the modules, 3 modules didn't work, and 3 of the modules were ignored.)
In most companies, I have noticed a recurring theme. The users can't (or don't want to) handle all of the system features. There is an associated expense to having user expertise to utilize all of the ERP options provided and many companies do not invest in user training or exploring the options provided by the ERP system. For many years (and especially this current period), companies are just trying to 'get the job done' with minimal expeditures. The large ERP vendors are missing the boat by not offering more cost efficient scalability in their products and pricing. I welcome the many potential benefits that the ERP business community will see with the scalability and cost benefits of SaaS, Open Source, and other cost reducing intiatives.
John Hanssen