Standard software is still the trend. This is shown by the Trovarit study ERP in practice. The superficial reasons for this are usually the low project risk and the lower costs. However, this is not always automatically guaranteed. But when do things really go wrong with the Standard systems? Dr Karsten Sontow, CEO of Trovarit AG, believes that the biggest mistake is already made when selecting the system: "The performance specification must be very specific (...) What the provider promises must be recorded in black and white".
In-house developments can be expensive
The fact that the performance of the software can be guaranteed is primarily due to the fact that the processes of the standard software have often already been tried and tested many times and have therefore usually been optimised. In many cases, therefore, only minor adjustments to the system itself are necessary. The advantage of this is that companies do not need to have any in-house IT development expertise. This can save a company a lot of time and money. This is because in-house developments are still expensive. And they are also still often risky, as the example of the Federal Employment Agency shows.
BA recently spent 4.5 billion euros on the further development and operation of software between 2011 and 2016 - and in some cases, it wasted it. For example, 60 million was invested in the ROBASO project (role-based interfaces) over the last 17 years. However, the project was cancelled at the beginning of the year. The reason given was that the software was too inflexible and complex for customer business. Eliminating the deficits would not have been worthwhile in terms of time and money.
More security through update capability
How can this happen? In-house developments harbour a frequent risk, above all because they are only developed once. This means that IT decision-makers cannot necessarily take anything away from a one-off project for the next project. ERP software however, must be regularly updated, revised and, if necessary - every 15 years - replaced. Standard software has much greater potential here and offers less risk and more flexibility. However, they are only successful if the pot finds the right lid.
"Best-of-breed" approach
Companies should therefore check whether they are opting for standard software that fulfils the requirements in the area of ERP such as financial accounting, customer relationship management or merchandise management. If this is not the case, there is still the option of looking around the "best-of-breed" range. "Best-of-breed" refers to the software philosophy of finding and integrating the best possible solution for each ERP application area. This involves combining the solution suites of various ERP providers for sub-areas into a holistic solution. According to the Trovarit study, the decision here depends primarily on the size of the company and the respective industry.
Financial accounting or human resources management in trend
However, people are particularly keen to invest in special systems that can be finance or human resources management. The reason for this is the frequent legal changes in these areas. These make it difficult to ensure that the software is up to date, according to Trovarit board member Sontow. Constantly adapting software in this area means a lot of effort. This is why industrial companies, for example, usually use a specialised system for their financial accounting. Retail companies, on the other hand, get by well with financial accounting that is integrated into the ERP system. This is because this is close to the core business for retailers and service providers. For manufacturing companies, this tends to lie in the production.
more on the subject:
Standard ERP: Advantages and disadvantages
The standard usability of ERP systems in 9 points
ERP as standard - what does that mean?
Integrated ERP approach or special software for financial management?
Standard still trendy
