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Comparisons of SAP and Peoplesoft ERP Software
By Reggie Andersen
Can one software maker do it all well? There are many software
development companies in the industry that are still striving to
release a single, complete, successful product of outstanding
quality and usability. With their modular approach to decision
support software, ERP vendors are on the right track; because
attempting to cover all of the separate functions of the modules
would be unthinkably large and complex--not to mention costly--for
one vendor.
However, Compare SAP and Peoplesoft ERP software, if each
individual module has a unique function, then each module can be a
different product developed by a different vendor dedicated
principally to the success of a single product.
Of course, if an ERP vendor can manage to avoid the
"not-invented-here" syndrome, it could integrate some of the best
existing tools from the various niche software makers. For
example, rather than writing a finite capacity scheduler from
scratch, an ERP vendor could purchase the rights to license a
scheduling tool from an existing best-in-class tool provider, and
integrate it with its other offerings. Indeed, the drive to
integrate best-in-class software tools from different functions
may be the dominant wave of the future for the ERP industry.
Another important strategic issue facing Compare SAP and
Peoplesoft ERP software ERP is whether the enterprise decision
support market is essentially homogeneous or heterogeneous. While
every company's specific problems are different, many problems are
variations of themes. Are the similarities strong enough to
support a "mass market" approach to software? Or are the
differences going to keep the manufacturing software market a
wide-open arena of niche specialists, systems integrators, and
solutions consultants?
The point may be moot, as this issue will likely be decided by
cost. Integrated packages from single vendors are going to require
a major up-front investment, but buying different modules from
multiple vendors will probably require a lot of effort to get them
to work together, and maintenance costs will be higher in the long
term if we compare SAP and Peoplesoft ERP software. If the issue
comes down to pay me now or pay me later, is it possible that
these technology decisions could be decided by each company's
financial situation, rather than by what the best solution is? We
hope not.
For some industrial managers, ERP is the nightmare that keeps them
awake at nights thinking "Is the MIS department going to take over
my manufacturing floor?" Much of the force pushing software makers
to develop better, more useful software has been coming from
practitioners: IEs and OR types who know exactly what they need
from a software package. Often these experts end up actually
writing the best software, as well. However, several of the ERP
vendors, notably giants SAPAG and Peoplesoft come from the
information systems world, and traditionally focus on the MIS
piece of organizations.
For engineers who have spent months locating and purchasing
software that they know and like, being forced to adopt "corporate's
package" may seem like one giant step backwards. Yet, the
potential strategic advantages of enterprise integration are
undeniable. One thing is certain: if you want to have control over
the tools you are going to be using, you're going to have to
utilize your engineering training and expertise to exert positive
influence on the selection process. If you sit passively on the
sidelines, don't be surprised if no one hears you.
Clearly, there are more questions than answers regarding the young
ERP movement. That said, we are left with one final question: will
all of this change result in ever increasing consulting bills? The
answer: almost certainly.
Reggie loves the ERP movement. Check out: http://www.erpsap.com |
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