I don't believe ERP in general is dying or going away. I think companies like SAP and Microsoft are going to be the ones to evolve and survive. There will always be a market for all types of platforms and systems.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Very good analysis Eric. However I wouldn't call this a "death". I'd probably call it an "evolution" of ERP systems. From my experience of 20 plus years I also believe that people and managers in organizations also need to "evolve" so that they can use their ERP systems to their near full potential before resorting to solutions outside of their existing ERPs. My experience has shown me over and over again that most companies don't even come close to using 50% of their ERP systems' potential.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Tend to agree with you Mustafa. On another note, a lot of the companies who have been using ERP over the years aren't interested in re-inventing the wheel. I also believe that we are getting better at integrations. I still see ERP being the foundation that companies build upon.
ERP is a concept and the software solutions currently available are inadequate. It doesn't mean erp software is dying. As long as there is an enterprise, it will have resources and these resources will have to be planned. This concept cannot die. But the type of software do change. I feel the term erp itself should now be changed to erpmc, ie enterprise resource planning,management and control. It should not end at planning.
Analysis that I fully agree with. Personally, I have 30 years of experience in international ERP implementations. I have produced solutions to make these softwares flexible and we have had great commercial success with "all-in-one" solutions. But the truth is that we have always been opposed first of all directly by the ERP producer because in contrast with their real goal: to sell licenses and protect a so-called "Eco system" which is being reduced only to a sales network but which has no realization skills and regularly fails projects. With the speed of change in today's business models, the ecosystem approach created by large software vendors produces much more failures than successes. Thanks again, best regards.
Agree. "Eco-system" protection it a red tape. On the point of success/failure balance - also agree, but I don't think it is to do with speed of change directly, it is a lot more to do with impatience of end consumers ('I want it now') and people who deliver work ('I want to be done with this and move on') and this does cause a lot of unsuccessful implementations. With change of software, mentality of sales and delivery, clients and providers has to change for it to succeed.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Business Central’s jump to the cloud with a revamped web based language is a good stride. Sure legacy pro’s at NAV may be pissed, but I find it’s truly a much needed growing pain. New grads unite
I have found after 26 years working in the ERP space that a fragmented system deploying 'Best of Breed' applications is far more expensive to both deploy and maintain. The first consideration is technology level of each of the fragmented applications, they are not all the same and not all play well together. Secondly is installing patches and upgrades to each BOB application, the changes can ripple through the other BOB applications, it's like herding cats. ERP systems are here to stay, they will just morph. Just my 2 cents.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Hello Eric, I agree with all the point you mentioned here, I think evolving to a cloud environments is one hell step managers are really scared to take and moreover the monolithic architecture method of developing an ERP should be changed into a micro service architecture. We do use odoo (open source) to develop ERP solution for our clients because it gives us that flexibility to add new module that fits in to our clients request but one thing I also noticed is that managers wants a better UI for there ERP system, something a full ERP system is unlikely to give you compare to systems like workforce or a team management (trello /Monday). In all ERP is not going to die out, all it needs is for managers to start looking out more for innovative ways and flexibility.
well said, regarding better UI, we offered people with mobile applications with only a few key information points that they can see on mobile. which solved most of their pain points of navigation in the web site of ERP.
SAP evolved into an integration platform that is called… SAP. So you use the standard where you’re not too special and and integrate best of breed where you need it. I see no reason why others don’t use the same strategy. There’s a more dangerous trend for ERP customers: With the cloud strategy, SAP tries to replace customers in house developers who know the inhouse processes. Once the in house technical staff with business process knowledge is lost, the vendor lock in is perfect.
I wish to send this to a few of my bigger clients who think that having a sole vendor will provide added flexibility. Sometimes I feel like I'm banging my head against a wall explaining that Best of Breed is the way forward. Interoperability issues are a thing of the past. Great presentations
Hi Eric, great topic, thanks! Where do you think Odoo is situated in your discussion here? I’ve been using it for the past 5 years for my business and it is evolving very quickly with a lot of added strenght!
It is incorrect to say erp is dying. It is getting improved and evolved to work perfectly in cloud. So those erp companies which were slow in adopting to cloud are dying or trying to survive with acquisition. Companies like oracle which rewrote all the code in cloud are still able to survive and survive well in the erp market.
Not sure what is "ending". ERP will simply continue to evolve. ERP was a replacement for custom systems. And those I don't see coming back. It leveraged best accounting practices as they were standardized at the time. If we go towards "best practices" and "cloud" then those will improve over time if they are half-baked now. The big players find it easier to buy out successful little niche companies and integrate them over time then try to create their own. Siebel was an Oracle executive who broke away with his own idea just as Oracle tried to match his product. In the end it was easier to just buy him and bring him and his products back 'in house'.
I would not say ERP is dying itself, but monolithic approach of ERP is shifting to more flexible form. As technology advanced last 10-15 years there is no need to run monolithic applications. Top ERP producers now offer CRM, HCM,Finance, WMS, BI etc. as separate Saas solutions with excellent possibilities of integration between each other with default interfaces, dual write features and so on. So customers can combine these solutions according to their business needs.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
The best thing a company can do is maintain their ERP system and complement it with Digital transformation platforms. You then get the best of both worlds.
I can see your point, large Erp software companies are developing huge, complex and expensive solutions that tend to underdeliver at the implementation stage and take years to give a noticeable ROI. This can be because the customer has pressures in the business, lacks required skills and/or consultants are unable to keep pace with the non-stop service packs. Maybe the future is for more affordable, simpler App based modules from different providers that integrate seamlessly.
This video tells me you don't have a grasp on great ERP systems. Any CFO/CEO/Controller that takes themselves and their business seriously enough and the company is actually growing, they will need an ERP system. Not even MRP is good enough for manufacturers alone. No, ERP should never be a "one size fits all" which is why the best ERP solutions WILL contact your company to figure out how to tailor their system to yours.....if you're a CFO/CEO that doesn't know that, wake up, or else your company is already behind. This is video is hilarious because of how useless it is, come on Eric. Quit with the click bait.
The average CEO or CFO will purchase an ERP system 2 or 3 times in their career. So do you really think they have a solid grasp on ERP? This video, case in point.
Overconfidence in the cloud is a supreme liability as it can be shattered so quickly that the organisation itself can grind to an actual halt. Cloud providers have a vested interest in keeping major breaches and incursions quiet, I know of a MAJOR one that halted customer operations for days but there is nothing in the media about it as careful reputation management was paramount.
When you have a dispute with the vendor of an on-prem solution, the most the vendor can do is deny access to Support. When you have a dispute with the vendor of a cloud solution, that vendor can shut down your entire operations instantly. Receiving can't receive; Purchasing can't purchase; Customer Service can't enter customer orders; Inventory doesn't move. I am amazed at how much control today's software users are willing to place in the hands of their software vendor. And besides, having your data "in the cloud" means your data can evaporate just like a cloud. It is said that people are the most important asset for a business. It's not true. DATA is the most important asset for a business. You can replace people. You can't replace your data. As technology becomes ever more sophisticated, users become ever more naive.
The blooper reels that Eric and everyone else in this field have might be legendary. I can deeply empathize, having once took a week to shoot an entire video of 15 minutes.
tend to disagree. The key value of ERP is to have a complete ERP/HCM/CX platform. That’s why Salesforce had to offer FinancialForce, and Workday is investing in ERP/SCM along their HR platform. Having HR and Financials as two separate systems is a complete mess, and integration when done right is very hard, it’s not just about a single SSO, there is roles/permissions/approval hierarchies, that u always need to have it in sync.
This is why you shouldn't go into the cloud. Cos once you are on the cloud, you effectively just sold your company data to the actual... Cloud ERP company's own data sets. They will own you. Not the other way around.
A little too outdated video for an expert: "SAP has gone out and bought Ariba and Success Factors...", that was 10+ yrs ago. "Microsoft has gone and bought Navision and Axapta...", that was 20+yrs ago. This is really weird and also you're talking about lack of integration of products that never meant to be integrated (like NAV and AX). What is happening in reality is that companies like Microsoft are moving towards a broad and complete set of products that can work integrated (Microsoft ERP+CRM+M365 for example), and also recently added another layer of integrated middle products like Power Apps and/or Power Automate or CDS, that along with their ERP's offerings, will give something to everyone (low code, flexibility to create and adapt your "rigid" ERP, etc). And no, ERP's are not dying (yet) but evolving.
@@richardparker1274 Hi. Called the video outdated for the reasons I already explained: talking about things that happened 20+ yrs ago to justify their conclusions are not really what I would call "valid". Sure, some of those ERP's got lost in their success and had some troubles trying to work/move through time, but their efforts to adapt and consolidate solutions that can work as a whole or individually are real and have been going on for a lot of years now. If I would've seen this video in 2008 I would totally agree with it. And yes, CDS is now called Dataverse but I am not using it to reason a complete video about it so I don't see your point.
The whole ERP concept has shifted. My opinion is, that organizations should choose a platform as a base for old style of ERP understanding, depending on business size, process requirements, considering possible limitations or challenges, that may be easier on one or another platform, technical capability and resources. Once platform is chosen, specific problematic areas that require solutions should be chosen and, as you call it, upstart (some of them 20 years old) can be used to cater for specific area of business while maintaining integrity of overall business processes, information collection and sharing for productive operations. ERP was never a full solution to big and complex businesses as it was not capable to (easily) cater for some of side-line processes due to it's rigidity or lack of some capabilities. Suggestion: big or small, choose a platform and transition via hybrid approach in to the cloud (apart from a few edge cases)
I have been working with ERP software systems for 8 years and they aren't dying. They are adapting to newer technologies and various integrations across many platforms. The demand for my services have never been higher ... In fact, I have to turn work away.
ERPs are not dying, they are simply evolving, where they become a digital CORE where you connect solutions from different providers, either from the ERP manufacturer itself or from third parties. For the larger players, they offer additional value to ERP through the solutions they are acquiring and connecting on top of their existing solutions.
If ERP software is dying, and it's taking almost 25 years, then it's like the fat lady at the opera...a slow death that might last another 25 years. I recall reading in the Economist magazine how DeBeers is destined to fail...this was back in the 1980s. Same with OPEC. They're still around, and likely to be around for a long time.
Utubers also Oracle usa 🇺🇸is having tremendous layoff Plus even after they went on cloud after rel 12 70 %droppage in client Oracle and SAP almost in coma
Customization, like you said, is limited, so organizations adapt to the software. This is usually against their best interests. Integration of disparate systems is the more successful "ERP" play but then the consultant is selling services, not software, so the vendor and the customer rarely have aligned interests. This drives CFO's to "The Cloud" because the lack of control is also a lack of a headache. The people who buck these trends are the MVP's.
I see multiple ERP system adopted by customers. One interesting phenomena I see recently in Oracle ERP is instead of moving to SaaS , customer instead upgrading on-premise system. With Oracle Saas, customer has implemented PaaS database as supporting system to validate incoming data. Data is refreshed from SaaS to PaaS. Oracle provided low code no code Apex solution to customise SaaS solution further. In a way Oracle giving all tools around SaaS. Oracle procurement , Payables and General ledger is used most in Oracle. Oracle provided good BI for reporting. In way as you said big integrated solution is not there. One company which I saw which implemented huge array of modules went bust. Main reason usage of feature per module was very low but customer is paying huge. Probably in near future feature based pricing may come intead of module based. Just guessing
This "low code", "no code" , "less administration" type of things from major cloud vendors and hyperscalers will going to impact a lot.... (.. .as per the current status..these composable/chainable building-blocks can quickly turn business idea to poc..and their scalability part is handled by cloud vendors) especially when almost everyone is struggling with IT/technical resources to implement the business needs !! But with ERP, for such small concepts .. cost/licenses/resources issues... so many factors!!
Erp + low code is what I believe for the future. But if one day in the future low code can provide good ERP Model. I will be happy to replace my Netsuite.
It means Odoo is the best Future ERP System, which not only an opern Erp but also able to integrate and adjust itself into any form of business. SAP and other giants were good but now the restrictions they are placing are making them not user friendly. Which have adverse consequences.
If the software operates in cloud as SaaS then it makes sense that ERP software can be a fit for everybody in multiple industry markets as long as configurations on software has a great degree of flexibility to generate unique business models with autonomy in backend and front end integration 🌍
The ERP is not dead but is evolving. Thanks to Salesforce and other could-based Enterprise Applications, technology giants like SAP have realized that the future is oriented to more Open Source, scalable and rapid build and deploy apps. With BTP, SAP is pretty much in the right direction. The other thing is that many customers with Legacy SAP systems still preferring the traditional on-premise deployment, so it will take many more years to move those customers to the cloud. I wouldn't be surprised if by 2040 some customers still manage their main systems on-premises.
Hi, Unfortunately, I'd say your analysis did apply about 5-4 years ago but is not current as of today. Things have moved quickly in the last few years. Thankfully large vendors like Infor manage to navigate the questions and concerns you mention. Interesting reading in the Transformation Report, thanks!
I don’t believe that ERP software is dying since software vendors like SAP, Infor, Oracle and Microsoft has been evolving as well. However its a given there’s no one size fits all solution to address today’s complex business processes. These ERP applications will need to have better integration capability and level up the security features.
I think the exact opposite is happening. The sme market has been mashing up apps for a long time but the integration between these solutions is not perfect. In addition it creates multiple uis to learn, different databases and processes that aren’t aligned. As soon as small business gets large enough they move to single system software. Your analysis is very focused on tier 1 systems like SAP. There are others like odoo for example that is a true ERP yet can scale from small to large - is flexible and cloud orientated. Larger businesses moving to mashups or best of breeds always end up - not quite right…
Hi Eric and others! I would be curious of your opinion on the ""best of breed " approach. To me, based on your assessment, it seems like the challenges of integrating these softwares and maintaining those are now less impactful/important then the benefit of the feature richness and the added agility that these pieces of software are bringing to the table? The reason i'm asking is that where customers followed the best of breed approach, they are having troubles about the integrations and stability which are coming from the usual factors like: shared responsibility, different business models, lack of focus on the integration side. Isn't there a constant move from ERP to "best of breed" and then back to ERP over time but never solving the two core problems (agility vs ootb integrated)? What are your views on this?
Gone for a dramatic title but with very blunt points throughout. The cloud move especially. Reimplementation allows for old processes to be reimagined by those currently in the organisation and in collaboration with consultants with experience across the wide ranging industries. I see best of breed being some what of a threat, but at present that is being requested as an integration. Users across systems don’t want things siloed and they crave automation.
well given such circumstances what solution do you propose for ERP Functional Consultants, how should they cope with these this dynamically changing environment
Eric, thanks for your deep analysis! Very useful. Could you please also analyse a role of PLM systems in an entire enterprise automation stack? Thanks!
My company, Embrace ERP has been implementing custom ERP solutions for over 35 years with a 100% implementation success rate, that's quite a feat that very few companies can boast about. I would disagree with the idea that it's dying, evolving sure, but death... nope.
Greate insight. It's so unbelievable even noawdays to implement or upgrade ERP is still so painful for an organization, ERP is either going to die or to be replaced by more agile and scalable solutions, I think.
ERP is agile and scalable. Nothing has changed. Somebody still has to do implementation and upgrade no matter what. This doesn't go away because you are 'in the cloud'.
The downside to best-in-breed products is they are siloed. Having data in one section of your business that doesn't "talk" to the other parts of your business limits the ability to concisely correlate data to actually improve efficiencies, limit waste, automate and improve productivity and profitability. A siloed program simply moves the bottleneck or constraint further along the chain. True ERP systems are still the best fit for this purpose and will be for a long time to come (interoperability platforms are still a long way from filling this need in the market)
it also creates redundant data that could disagree, e.g. if cou grant a customer a discount after the sale in SAP the amount is already booked on the accounts and all is fine, no Financial integration needed, as the invoice itself is a financial document in the truest terms
A best of breed approach is at least 2x more expensive to buy and way too complex to integrate and maintain. Add the complexity of handling different vendors, different partners, different specialists and multiple contracts for the operation, different SLAs and vulnerability on each of the solutions chosen, specially public cloud ones.
It amuses me that we continue to have the "Best-of-Breed versus ERP" debate in which I first participated in the mid 90s. The notion that BofB is a viable option is yet another manifestation of the lack of maturity amongst business leaders vis-à-vis business systems. The greatest benefactors of this debate are those who continue to give it oxygen. After decades of evidence, it is disingenuous of such people to suggest that best-of-breed has, or will ever, "replace" an integrated solution. Even with cloud technology in place, it is enormously advantageous to the users of business software to deal with as few software vendors as possible. Having a common user interface across the entire organization is as sensible as having a common language (i.e. English) by which your people, customers, and suppliers communicate. A surfeit of user interfaces poses a significant impediment to training and operations. It is important to remember that "great software with good people" will produce good results but "great people with good software" will produce great results. Today, as was true decades ago and will be true decades from now, it's all about the people.
IMHO: Avoid "best of breed" as hell! I have seen lots of satellite systems doing what the ERP already can do, they were bought/installed because of the implementation team lack of knowledge about the ERP functionality. This happens in all areas, from reports of leads to barcode use in warehouse, from credit card reconciliation to employee benefits control, from travel expenses control to planning and production control, the list goes on and on. Have a team that REALLY knows the ERP and apply Pareto principle.
I am always attentive to everything they publish, it seems to me an excellent channel. This time I have to say that I do not agree with what is expressed in this video, at Odoo we aim for a 100% cloud strategy that integrates the different business areas and we do it very well, I encourage you to see the ton of improvements which we are going to introduce soon with our version 16. Perhaps the ERPs that have to change their strategy are undoubtedly those that must be completely rewritten to work in the cloud, fortunately it is not our case. We are 100% open source and that is our greatest strength.
Any ERP can't fulfill all requirements of any business and combinations of cloud and onpremises versions always exists in feature too..there is no end but keeps on changing since the technology keeps on changing
I can disagree with your opinion simply from your prospective. Your prospective comes from systems claiming to be erp. But an ERP is a structural solution. It’s like saying CRMs are dying but an offline or online CSV can be a CRM. For the last year business has been booming by companies wanting a ERP built using their current software solutions.
First of all, sorry about my english, i know the cloud is the future, but, and the services that needs to be works offline? In Brazil when you go to a shop and buy something, taxes is emited, if no internet or gov system is down taxes is saved offline to upload later, so if solution is in the cloud, how deal with this situation?
I have been unable to verify the claim that "ERP software has been dying a slow death for the past few decades". I *have* been able to verify, through Statista, that global ERP software revenue has grown steadily from 2011 (23.8 billion USD) to 2017 (34.36 billion USD). It may be that ERP is a declining percentage of total software sales but I've not been able to verify or discredit that. I will keep looking.
Not sure why anyone would ever avoid cloud ERP. Do you make the most sales whenever your internet goes down for 20 minutes during a thunderstorm? Is your business out in the middle of nowhere running on dial-up? If so, then your business isn't valuable. If you're goal is to sell your company in five years and you don't have a method of tracking inventory or financials, then you won't be able to sell.
CRM and HRM were never core ERP. CRM is more of a sales tool - not an accounting tool. HRM is not something you want the whole enterprise to have access to. Core accounting / supply chain / manufacturing ERP isn't going anywhere. Only small businesses that don't need much functionality and can't afford to implement or run an ERP system in-house are moving to the cloud. On-premise is way more functional and if people need to access it off-site, they just use remote desktop. This is just click-bait to generate leads.
ERP is never "one size fits all" they are heavily customized systems and even for a medium size company starting a transition to a new ERP is an endeavor costig millions as you have to adjust all the things that don't fit, and with most ERP Systems, notable SAP, this is possible, you can also just use parts of an ERP and create interfaces to other systems, external CRM systems are the norm, even for big SAP users
They are not "customised" but are "localised". Meaning that if country A wants 20% tax. Then they will get it. Not use and recreate that codes again in a cloud product. And or even to merge them over and use the cloud company's data and... Let them sell your own company data for their clients!!!....
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
I believe, partially ERP systems are dying but not of all them. Certainly SAP, Oracle and Dynamics, which for me is not an ERP as it should be, and some others, are dying for many reasons . SAP primarily is dying because their strictly and highly cost licensing scheme added to a very poor moving to S4Hanna strategy and not less important, the lack of flexibility for adapting to a specific business needs. Oracle, well, where to start, they have purchased so many other solutions that they just can't get them all in one, and that's all I have to say for Oracle. Microsoft Dynamics is very poor on the manufacturing module, lack production planning and some other weaknesses . But by the other side, we need to take a look at other emerging ERPs like ERP Next or ODOO(former Open ERP), that bring so many advantages than the others mentioned above. For Example they are based on open source, so, no code is strictly copyrighted. ODOO was born as SaaS and PaaS so no problems on compatibility can be found. Licensing, Installation, operation and portability costs are very reasonable. Lastly I believe SAP and Microsoft need to evolve very very fast in order to survive. I have 35 years of experience implementing MRPs and ERPs like BPCS, SAP, JDEdwards, ORACLE Enterprise among others homemade ERPs, and I'm looking very seriously those emerging ERP since I'm realizing great advantages that Businesses could take part of them.
Back in the 70's they had these point solutions that were doing specific functions and its was a pain to have them talk to each other - and that gave birth to ERP. Now we are going in circles and saying lets kill ERP go back to best of breed solutions , sugar coat it will cloud and API capabilities and spend millions hiring people to integrate all of them when you could buy an ERP with less or equal cost and compromise on little bit on flexibility (or call it lack of process discipline). Also SAP, Oracle etc.. are constantly enhancing their products to provide tools to leverage latest and greatest trends like 'Digital Transformation', riding 'Intelligence Wave', RPA, Block chain etc... may be they did not watch this video, or , may be you have not seen what these ERPs are capable of in 2022, BTW ERPs are also on cloud now. In my Opinion, ERPs are still very powerful engines. What I have seen happening is - they are not dying , instead they are becoming sort of 'Back Ends' to these very savvy point solutions like where you could click a photo of a receipt and submit an expense report, or some cloud OCR service (eg AWS Textract ) that ERP can now easily consume to provide AP automation or you can a get sleek analytics or BI solution that can serve your blue collar to white collar or the latest buzzz is Low-Code / No-Code solutions (eg MS Power Automate) where you can cook up a process flow in 15 mins that can , for example, build your own custom vendor onboarding portal that will create you Vendor master data without getting into the ERP. So I am proud to live long enough to see the death of ERPs. look into its eyes as it takes its last breath.. But I am still waiting for that day.
Parcialmente cierto!!! Por supuesto un sistema ERP nunca va a poder abordar todos y cada uno de los requerimientos de los clientes internos de la organización, pero esto SIEMPRE LO HEMOS SABIDO, aquí tu propuesta no es innovadora, inclusive desde hace más de 10 años de viene trabajando fuertemente en soluciones a la medida que se puedan integrar a la base (ERP), sin embargo, esta opción a pesar que es muy utilizada es por mucho más costosa, ya que implica crear entornos de interoperatividad (API, Colas Rabbit MQ…), mantenimiento de los mismos, evolución de esos mismos entornos, lo cual representa un sobre costo para las empresas, que obviamente no hablo de las grandes empresas (ellas tienen cómo pagarlo). Por eso respeto tu punto de vista pero no lo comparto, creo que todavía el software ERP es la mejor opción para una empresa pequeña o mediana, inclusive partamos que la gran parte de estas empresa tienen el caso inverso, cuentan con soluciones aisladas que no permiten la interoperatividad y al ser así no pueden operar de manera óptima, llevándolos a requerir un ERP para ello, Por tanto el ERP está más vivo que nunca, lo único es que con el nuevo concepto de ERP Cloud.
ERPs are dead cloud or on premise, many big and smb companies do not care anymore. They will get the minimum number of users from an ERP just to have their basic needs covered and then they will just fk up the rest of their employees/resources (call it as you wish) to make data entry 5-6 hours per day to make data entries in excel sheets, ms access crappy logic, Jira Issues, Teamwork Tasks and real work time 2-3 hours. A very sad truth as I see it
Eric:: ERP is dead!! Long Live ERP!!! Enterprise Resource Planning has had many avatars MRP - ERP - ERP+CRM+ SCM - Cloud ERP - Platform ERP ...and it keeps evolving. 1. ERP has become part of essential Utility - Tech Infa - like Electricity or HVAC in enterprises. It was expected because of the integrated orchestrated business processes that ERP enables. But if you want to keep your Secret sauce - unique business processes - you can always customise the vanilla ERP ( that may cost you tons of $$) 2. ERP has now evolved to add new dimension technology and platforms - Internet/ cloud/ AI ML based systems SAP is the king of ERP Technology whether we like it or not! And they own almost 60% of tech space in ERP domain. Microsoft ERP post axapta etc acquisitions have matured to a very flexible integrated ERP system. 3. Best of breed is good but that is where we started 25 years back from best of breed ( local) to integrated ERP ( global) You are probably biased or trying a new argument but it's still old wine in a new bottle! I wrote the book ERP in Practice published by Macgraw hill education a decade back. All those points you have elucidated are covered in my book....which is a text book in many global universities. Please try to give a balanced assessment when you discuss technology and business. Thanks for sharing. www.amazon.com/Erp-Practice-Jagan-Nathan-Vaman/dp/B0049VO8VI 2
Great video that is very relevant to me. I will celebrate when SAP breathes its death gasp. It is stunning to me that it persists and I will gleefully replace my SAP work flows while wearing a grin.
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I don't believe ERP in general is dying or going away. I think companies like SAP and Microsoft are going to be the ones to evolve and survive. There will always be a market for all types of platforms and systems.
🔮
Right. They'll come with some new kind of upgrade in their ERP system with new technologies and methods.
but they will erode either way, will need to change. The concept of platform is way to attractive for integration to specialized software.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
@@Miguel_Thorpe Wha's the real value of a decentraliced ERP? What do users/clients/companies get from this approach?
Very good analysis Eric. However I wouldn't call this a "death". I'd probably call it an "evolution" of ERP systems. From my experience of 20 plus years I also believe that people and managers in organizations also need to "evolve" so that they can use their ERP systems to their near full potential before resorting to solutions outside of their existing ERPs. My experience has shown me over and over again that most companies don't even come close to using 50% of their ERP systems' potential.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Tend to agree with you Mustafa. On another note, a lot of the companies who have been using ERP over the years aren't interested in re-inventing the wheel. I also believe that we are getting better at integrations.
I still see ERP being the foundation that companies build upon.
ERP is a concept and the software solutions currently available are inadequate. It doesn't mean erp software is dying. As long as there is an enterprise, it will have resources and these resources will have to be planned. This concept cannot die. But the type of software do change. I feel the term erp itself should now be changed to erpmc, ie enterprise resource planning,management and control. It should not end at planning.
Analysis that I fully agree with.
Personally, I have 30 years of experience in international ERP implementations.
I have produced solutions to make these softwares flexible and we have had great commercial success with "all-in-one" solutions. But the truth is that we have always been opposed first of all directly by the ERP producer because in contrast with their real goal: to sell licenses and protect a so-called "Eco system" which is being reduced only to a sales network but which has no realization skills and regularly fails projects.
With the speed of change in today's business models, the ecosystem approach created by large software vendors produces much more failures than successes.
Thanks again, best regards.
Agree. "Eco-system" protection it a red tape. On the point of success/failure balance - also agree, but I don't think it is to do with speed of change directly, it is a lot more to do with impatience of end consumers ('I want it now') and people who deliver work ('I want to be done with this and move on') and this does cause a lot of unsuccessful implementations.
With change of software, mentality of sales and delivery, clients and providers has to change for it to succeed.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Business Central’s jump to the cloud with a revamped web based language is a good stride. Sure legacy pro’s at NAV may be pissed, but I find it’s truly a much needed growing pain. New grads unite
I have found after 26 years working in the ERP space that a fragmented system deploying 'Best of Breed' applications is far more expensive to both deploy and maintain. The first consideration is technology level of each of the fragmented applications, they are not all the same and not all play well together. Secondly is installing patches and upgrades to each BOB application, the changes can ripple through the other BOB applications, it's like herding cats. ERP systems are here to stay, they will just morph. Just my 2 cents.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Hello Eric, I agree with all the point you mentioned here, I think evolving to a cloud environments is one hell step managers are really scared to take and moreover the monolithic architecture method of developing an ERP should be changed into a micro service architecture.
We do use odoo (open source) to develop ERP solution for our clients because it gives us that flexibility to add new module that fits in to our clients request but one thing I also noticed is that managers wants a better UI for there ERP system, something a full ERP system is unlikely to give you compare to systems like workforce or a team management (trello /Monday). In all ERP is not going to die out, all it needs is for managers to start looking out more for innovative ways and flexibility.
well said, regarding better UI, we offered people with mobile applications with only a few key information points that they can see on mobile. which solved most of their pain points of navigation in the web site of ERP.
SAP evolved into an integration platform that is called… SAP.
So you use the standard where you’re not too special and and integrate best of breed where you need it.
I see no reason why others don’t use the same strategy.
There’s a more dangerous trend for ERP customers:
With the cloud strategy, SAP tries to replace customers in house developers who know the inhouse processes.
Once the in house technical staff with business process knowledge is lost, the vendor lock in is perfect.
that boat sailed like 20 years ago, the developers doing these things are already only working for consultancies
just learning about ERP through your videos
I wish to send this to a few of my bigger clients who think that having a sole vendor will provide added flexibility. Sometimes I feel like I'm banging my head against a wall explaining that Best of Breed is the way forward. Interoperability issues are a thing of the past. Great presentations
Thank you for sharing this with your clients, Larry! Hope you are doing well.
Hi Eric, great topic, thanks! Where do you think Odoo is situated in your discussion here? I’ve been using it for the past 5 years for my business and it is evolving very quickly with a lot of added strenght!
It is incorrect to say erp is dying. It is getting improved and evolved to work perfectly in cloud. So those erp companies which were slow in adopting to cloud are dying or trying to survive with acquisition. Companies like oracle which rewrote all the code in cloud are still able to survive and survive well in the erp market.
Not sure what is "ending". ERP will simply continue to evolve. ERP was a replacement for custom systems. And those I don't see coming back. It leveraged best accounting practices as they were standardized at the time. If we go towards "best practices" and "cloud" then those will improve over time if they are half-baked now. The big players find it easier to buy out successful little niche companies and integrate them over time then try to create their own. Siebel was an Oracle executive who broke away with his own idea just as Oracle tried to match his product. In the end it was easier to just buy him and bring him and his products back 'in house'.
I would not say ERP is dying itself, but monolithic approach of ERP is shifting to more flexible form. As technology advanced last 10-15 years there is no need to run monolithic applications. Top ERP producers now offer CRM, HCM,Finance, WMS, BI etc. as separate Saas solutions with excellent possibilities of integration between each other with default interfaces, dual write features and so on. So customers can combine these solutions according to their business needs.
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
ERP was never about being monolithic. You have a misunderstanding of what ERP is.
@@bigmacdaddy1234 Yes, you are probably right. 🤷🏻
The best thing a company can do is maintain their ERP system and complement it with Digital transformation platforms. You then get the best of both worlds.
I can see your point, large Erp software companies are developing huge, complex and expensive solutions that tend to underdeliver at the implementation stage and take years to give a noticeable ROI. This can be because the customer has pressures in the business, lacks required skills and/or consultants are unable to keep pace with the non-stop service packs.
Maybe the future is for more affordable, simpler App based modules from different providers that integrate seamlessly.
I’m thinking that as well
This video tells me you don't have a grasp on great ERP systems. Any CFO/CEO/Controller that takes themselves and their business seriously enough and the company is actually growing, they will need an ERP system. Not even MRP is good enough for manufacturers alone.
No, ERP should never be a "one size fits all" which is why the best ERP solutions WILL contact your company to figure out how to tailor their system to yours.....if you're a CFO/CEO that doesn't know that, wake up, or else your company is already behind.
This is video is hilarious because of how useless it is, come on Eric. Quit with the click bait.
The average CEO or CFO will purchase an ERP system 2 or 3 times in their career. So do you really think they have a solid grasp on ERP? This video, case in point.
Thanks!
Looking at using Odoo. Thoughts?
I'm doing the same. It's seems to be the logical choice out of all the others, for startups and side hustles.
Overconfidence in the cloud is a supreme liability as it can be shattered so quickly that the organisation itself can grind to an actual halt. Cloud providers have a vested interest in keeping major breaches and incursions quiet, I know of a MAJOR one that halted customer operations for days but there is nothing in the media about it as careful reputation management was paramount.
When you have a dispute with the vendor of an on-prem solution, the most the vendor can do is deny access to Support. When you have a dispute with the vendor of a cloud solution, that vendor can shut down your entire operations instantly. Receiving can't receive; Purchasing can't purchase; Customer Service can't enter customer orders; Inventory doesn't move. I am amazed at how much control today's software users are willing to place in the hands of their software vendor. And besides, having your data "in the cloud" means your data can evaporate just like a cloud. It is said that people are the most important asset for a business. It's not true. DATA is the most important asset for a business. You can replace people. You can't replace your data. As technology becomes ever more sophisticated, users become ever more naive.
It’s all about joining/blending of Different data sources & the Analytics / visualization , coupled with Machine Learning / AI ...the New Trend .
The blooper reels that Eric and everyone else in this field have might be legendary. I can deeply empathize, having once took a week to shoot an entire video of 15 minutes.
tend to disagree. The key value of ERP is to have a complete ERP/HCM/CX platform. That’s why Salesforce had to offer FinancialForce, and Workday is investing in ERP/SCM along their HR platform. Having HR and Financials as two separate systems is a complete mess, and integration when done right is very hard, it’s not just about a single SSO, there is roles/permissions/approval hierarchies, that u always need to have it in sync.
This is why you shouldn't go into the cloud. Cos once you are on the cloud, you effectively just sold your company data to the actual... Cloud ERP company's own data sets. They will own you. Not the other way around.
Not dying at all. Just evolution.
A little too outdated video for an expert: "SAP has gone out and bought Ariba and Success Factors...", that was 10+ yrs ago. "Microsoft has gone and bought Navision and Axapta...", that was 20+yrs ago. This is really weird and also you're talking about lack of integration of products that never meant to be integrated (like NAV and AX). What is happening in reality is that companies like Microsoft are moving towards a broad and complete set of products that can work integrated (Microsoft ERP+CRM+M365 for example), and also recently added another layer of integrated middle products like Power Apps and/or Power Automate or CDS, that along with their ERP's offerings, will give something to everyone (low code, flexibility to create and adapt your "rigid" ERP, etc). And no, ERP's are not dying (yet) but evolving.
Need to be careful calling outdated as Isn’t CDS now dataverse? I think the principles discussed are valid.
@@richardparker1274 Hi. Called the video outdated for the reasons I already explained: talking about things that happened 20+ yrs ago to justify their conclusions are not really what I would call "valid". Sure, some of those ERP's got lost in their success and had some troubles trying to work/move through time, but their efforts to adapt and consolidate solutions that can work as a whole or individually are real and have been going on for a lot of years now. If I would've seen this video in 2008 I would totally agree with it. And yes, CDS is now called Dataverse but I am not using it to reason a complete video about it so I don't see your point.
The whole ERP concept has shifted.
My opinion is, that organizations should choose a platform as a base for old style of ERP understanding, depending on business size, process requirements, considering possible limitations or challenges, that may be easier on one or another platform, technical capability and resources. Once platform is chosen, specific problematic areas that require solutions should be chosen and, as you call it, upstart (some of them 20 years old) can be used to cater for specific area of business while maintaining integrity of overall business processes, information collection and sharing for productive operations.
ERP was never a full solution to big and complex businesses as it was not capable to (easily) cater for some of side-line processes due to it's rigidity or lack of some capabilities.
Suggestion: big or small, choose a platform and transition via hybrid approach in to the cloud (apart from a few edge cases)
I have been working with ERP software systems for 8 years and they aren't dying. They are adapting to newer technologies and various integrations across many platforms. The demand for my services have never been higher ... In fact, I have to turn work away.
This is such a great opportunity, but *what* that opportunity is for each of us is the question we have to ask.
ERPs are not dying, they are simply evolving, where they become a digital CORE where you connect solutions from different providers, either from the ERP manufacturer itself or from third parties. For the larger players, they offer additional value to ERP through the solutions they are acquiring and connecting on top of their existing solutions.
Currently, SAP is a lot faster than Oracle cloud. I also love how you copy cells in excel and then pasting it directly to sap.
No it is not🤣🤣
If ERP software is dying, and it's taking almost 25 years, then it's like the fat lady at the opera...a slow death that might last another 25 years. I recall reading in the Economist magazine how DeBeers is destined to fail...this was back in the 1980s. Same with OPEC. They're still around, and likely to be around for a long time.
I agree with the analysis. Cost and value are adverse now with big ERP firm. The cloud and Mobile apps also changed the entire business dynamics.
Utubers also
Oracle usa 🇺🇸is having tremendous layoff
Plus even after they went on cloud after rel 12 70 %droppage in client
Oracle and SAP almost in coma
Customization, like you said, is limited, so organizations adapt to the software. This is usually against their best interests.
Integration of disparate systems is the more successful "ERP" play but then the consultant is selling services, not software, so the vendor and the customer rarely have aligned interests. This drives CFO's to "The Cloud" because the lack of control is also a lack of a headache.
The people who buck these trends are the MVP's.
I see multiple ERP system adopted by customers. One interesting phenomena I see recently in Oracle ERP is instead of moving to SaaS , customer instead upgrading on-premise system. With Oracle Saas, customer has implemented PaaS database as supporting system to validate incoming data. Data is refreshed from SaaS to PaaS. Oracle provided low code no code Apex solution to customise SaaS solution further. In a way Oracle giving all tools around SaaS. Oracle procurement , Payables and General ledger is used most in Oracle. Oracle provided good BI for reporting. In way as you said big integrated solution is not there. One company which I saw which implemented huge array of modules went bust. Main reason usage of feature per module was very low but customer is paying huge. Probably in near future feature based pricing may come intead of module based. Just guessing
This "low code", "no code" , "less administration" type of things from major cloud vendors and hyperscalers will going to impact a lot.... (.. .as per the current status..these composable/chainable building-blocks can quickly turn business idea to poc..and their scalability part is handled by cloud vendors)
especially when almost everyone is struggling with IT/technical resources to implement the business needs !!
But with ERP, for such small concepts ..
cost/licenses/resources issues... so many factors!!
Very good analysis. Keep adding more content. Thanks for your time 🙏🏽.
Erp + low code is what I believe for the future. But if one day in the future low code can provide good ERP Model. I will be happy to replace my Netsuite.
Microsoft is making huge strides in doing exactly that.
It means Odoo is the best Future ERP System, which not only an opern Erp but also able to integrate and adjust itself into any form of business.
SAP and other giants were good but now the restrictions they are placing are making them not user friendly. Which have adverse consequences.
If the software operates in cloud as SaaS then it makes sense that ERP software can be a fit for everybody in multiple industry markets as long as configurations on software has a great degree of flexibility to generate unique business models with autonomy in backend and front end integration 🌍
As an ETL guy, this is music to my ears. I think I will be pretty busy.
The ERP is not dead but is evolving. Thanks to Salesforce and other could-based Enterprise Applications, technology giants like SAP have realized that the future is oriented to more Open Source, scalable and rapid build and deploy apps. With BTP, SAP is pretty much in the right direction. The other thing is that many customers with Legacy SAP systems still preferring the traditional on-premise deployment, so it will take many more years to move those customers to the cloud. I wouldn't be surprised if by 2040 some customers still manage their main systems on-premises.
Hi,
Unfortunately, I'd say your analysis did apply about 5-4 years ago but is not current as of today. Things have moved quickly in the last few years.
Thankfully large vendors like Infor manage to navigate the questions and concerns you mention.
Interesting reading in the Transformation Report, thanks!
In India both individual SaaS apps and ERPs are growing well. Everyone is making money, I don’t think it’s going down anytime soon.
As we are mentioning low code solutions. How does Claris Filemaker fit in? Lately there are options to integrate it in corporate environments.
I don’t believe that ERP software is dying since software vendors like SAP, Infor, Oracle and Microsoft has been evolving as well. However its a given there’s no one size fits all solution to address today’s complex business processes. These ERP applications will need to have better integration capability and level up the security features.
I think the exact opposite is happening. The sme market has been mashing up apps for a long time but the integration between these solutions is not perfect. In addition it creates multiple uis to learn, different databases and processes that aren’t aligned. As soon as small business gets large enough they move to single system software. Your analysis is very focused on tier 1 systems like SAP. There are others like odoo for example that is a true ERP yet can scale from small to large - is flexible and cloud orientated. Larger businesses moving to mashups or best of breeds always end up - not quite right…
Hi Eric and others! I would be curious of your opinion on the ""best of breed " approach. To me, based on your assessment, it seems like the challenges of integrating these softwares and maintaining those are now less impactful/important then the benefit of the feature richness and the added agility that these pieces of software are bringing to the table? The reason i'm asking is that where customers followed the best of breed approach, they are having troubles about the integrations and stability which are coming from the usual factors like: shared responsibility, different business models, lack of focus on the integration side. Isn't there a constant move from ERP to "best of breed" and then back to ERP over time but never solving the two core problems (agility vs ootb integrated)? What are your views on this?
Gone for a dramatic title but with very blunt points throughout. The cloud move especially. Reimplementation allows for old processes to be reimagined by those currently in the organisation and in collaboration with consultants with experience across the wide ranging industries. I see best of breed being some what of a threat, but at present that is being requested as an integration. Users across systems don’t want things siloed and they crave automation.
well given such circumstances what solution do you propose for ERP Functional Consultants, how should they cope with these this dynamically changing environment
Now which technology to learn
What about Acumatica Cloud ERP? It's seems to be the opposite of what you described in this video. Am I missing something?
Eric, thanks for your deep analysis! Very useful.
Could you please also analyse a role of PLM systems in an entire enterprise automation stack?
Thanks!
My company, Embrace ERP has been implementing custom ERP solutions for over 35 years with a 100% implementation success rate, that's quite a feat that very few companies can boast about. I would disagree with the idea that it's dying, evolving sure, but death... nope.
ERP, in general, focused on accounting and manufacturing and not other function in depth. It is time ERP must be flexible to integrate with others.
Greate insight. It's so unbelievable even noawdays to implement or upgrade ERP is still so painful for an organization, ERP is either going to die or to be replaced by more agile and scalable solutions, I think.
ERP is agile and scalable. Nothing has changed. Somebody still has to do implementation and upgrade no matter what. This doesn't go away because you are 'in the cloud'.
The downside to best-in-breed products is they are siloed. Having data in one section of your business that doesn't "talk" to the other parts of your business limits the ability to concisely correlate data to actually improve efficiencies, limit waste, automate and improve productivity and profitability. A siloed program simply moves the bottleneck or constraint further along the chain. True ERP systems are still the best fit for this purpose and will be for a long time to come (interoperability platforms are still a long way from filling this need in the market)
Absolutely. These cloud niche solutions are new forms of siloed home grown applications of 80s and 90s.
it also creates redundant data that could disagree, e.g. if cou grant a customer a discount after the sale in SAP the amount is already booked on the accounts and all is fine, no Financial integration needed, as the invoice itself is a financial document in the truest terms
A best of breed approach is at least 2x more expensive to buy and way too complex to integrate and maintain.
Add the complexity of handling different vendors, different partners, different specialists and multiple contracts for the operation, different SLAs and vulnerability on each of the solutions chosen, specially public cloud ones.
It amuses me that we continue to have the "Best-of-Breed versus ERP" debate in which I first participated in the mid 90s. The notion that BofB is a viable option is yet another manifestation of the lack of maturity amongst business leaders vis-à-vis business systems. The greatest benefactors of this debate are those who continue to give it oxygen. After decades of evidence, it is disingenuous of such people to suggest that best-of-breed has, or will ever, "replace" an integrated solution. Even with cloud technology in place, it is enormously advantageous to the users of business software to deal with as few software vendors as possible. Having a common user interface across the entire organization is as sensible as having a common language (i.e. English) by which your people, customers, and suppliers communicate. A surfeit of user interfaces poses a significant impediment to training and operations. It is important to remember that "great software with good people" will produce good results but "great people with good software" will produce great results. Today, as was true decades ago and will be true decades from now, it's all about the people.
SAP ain't going nowhere.
You may be right! History would suggest that you are...
Agreed many org going to fiori but not full cloud as standalone cloud
IMHO: Avoid "best of breed" as hell! I have seen lots of satellite systems doing what the ERP already can do, they were bought/installed because of the implementation team lack of knowledge about the ERP functionality. This happens in all areas, from reports of leads to barcode use in warehouse, from credit card reconciliation to employee benefits control, from travel expenses control to planning and production control, the list goes on and on. Have a team that REALLY knows the ERP and apply Pareto principle.
I am always attentive to everything they publish, it seems to me an excellent channel. This time I have to say that I do not agree with what is expressed in this video, at Odoo we aim for a 100% cloud strategy that integrates the different business areas and we do it very well, I encourage you to see the ton of improvements which we are going to introduce soon with our version 16. Perhaps the ERPs that have to change their strategy are undoubtedly those that must be completely rewritten to work in the cloud, fortunately it is not our case. We are 100% open source and that is our greatest strength.
Hi, in this case which course suggestabl for finance students
Eric your references of ERP vendors acquiring solutions to fill a gap are years out of date..
This evolution has been in affect for many years now...and yes, best of breed is the trend and future. Integration through API.
Any ERP can't fulfill all requirements of any business and combinations of cloud and onpremises versions always exists in feature too..there is no end but keeps on changing since the technology keeps on changing
I can disagree with your opinion simply from your prospective. Your prospective comes from systems claiming to be erp. But an ERP is a structural solution. It’s like saying CRMs are dying but an offline or online CSV can be a CRM. For the last year business has been booming by companies wanting a ERP built using their current software solutions.
This is incredibly insightful, but only if today is 2012 😶
First of all, sorry about my english, i know the cloud is the future, but, and the services that needs to be works offline? In Brazil when you go to a shop and buy something, taxes is emited, if no internet or gov system is down taxes is saved offline to upload later, so if solution is in the cloud, how deal with this situation?
Nah.. I prefer monoliths ERP with some added models & big data cloud support than handle all those microservices.
I mean, I guess if the company was a mom and pop selling ceramics out of their back shed, they would find value in agreeing with this video
90 of 100 of top companies are using SAP ERP. I think they are pretty alive
good analysis
I have been unable to verify the claim that "ERP software has been dying a slow death for the past few decades". I *have* been able to verify, through Statista, that global ERP software revenue has grown steadily from 2011 (23.8 billion USD) to 2017 (34.36 billion USD). It may be that ERP is a declining percentage of total software sales but I've not been able to verify or discredit that. I will keep looking.
Erp system provide better visibility and more accurate transactions that singular platforms
Naaah.. SAP is immortal💙
Seems that what you’re saying is that 2030 is going to look a lot like 1990. Not entirely convinced.
😊
Not sure why anyone would ever avoid cloud ERP. Do you make the most sales whenever your internet goes down for 20 minutes during a thunderstorm? Is your business out in the middle of nowhere running on dial-up? If so, then your business isn't valuable.
If you're goal is to sell your company in five years and you don't have a method of tracking inventory or financials, then you won't be able to sell.
CRM and HRM were never core ERP. CRM is more of a sales tool - not an accounting tool. HRM is not something you want the whole enterprise to have access to. Core accounting / supply chain / manufacturing ERP isn't going anywhere. Only small businesses that don't need much functionality and can't afford to implement or run an ERP system in-house are moving to the cloud. On-premise is way more functional and if people need to access it off-site, they just use remote desktop. This is just click-bait to generate leads.
ERP is never "one size fits all" they are heavily customized systems and even for a medium size company starting a transition to a new ERP is an endeavor costig millions as you have to adjust all the things that don't fit, and with most ERP Systems, notable SAP, this is possible, you can also just use parts of an ERP and create interfaces to other systems, external CRM systems are the norm, even for big SAP users
They are not "customised" but are "localised". Meaning that if country A wants 20% tax. Then they will get it. Not use and recreate that codes again in a cloud product. And or even to merge them over and use the cloud company's data and... Let them sell your own company data for their clients!!!....
I skipped the second he referred to Saleforce as an upstart. Great topic, ERP systems are a complete disaster these days
Nice bloopers at the end
Thank you - there are always plenty of bloopers from each video I film!
ObiusERP is a Decentralized ERP solution where every transaction is transacted on Constellation’s Hypergraph which is a super distributed ledger technology. This allows for AI to take complex data types & utilize meta data to better the ERP solution & experience, applying Web3 incentives for consumers as well. Not only this but ObiusERP is a member of the Digital Pound Foundation for CBDC’s & will offer their own POS system where businesses can run all financial transactions (including accounting) on distributed ledger technology, which makes their business much more efficient than what any other ERP solution offers. This will be the death of legacy ERP solutions.
Flexible and open source solutions like Odoo is the future
I believe, partially ERP systems are dying but not of all them. Certainly SAP, Oracle and Dynamics, which for me is not an ERP as it should be, and some others, are dying for many reasons . SAP primarily is dying because their strictly and highly cost licensing scheme added to a very poor moving to S4Hanna strategy and not less important, the lack of flexibility for adapting to a specific business needs. Oracle, well, where to start, they have purchased so many other solutions that they just can't get them all in one, and that's all I have to say for Oracle. Microsoft Dynamics is very poor on the manufacturing module, lack production planning and some other weaknesses .
But by the other side, we need to take a look at other emerging ERPs like ERP Next or ODOO(former Open ERP), that bring so many advantages than the others mentioned above. For Example they are based on open source, so, no code is strictly copyrighted. ODOO was born as SaaS and PaaS so no problems on compatibility can be found. Licensing, Installation, operation and portability costs are very reasonable. Lastly I believe SAP and Microsoft need to evolve very very fast in order to survive. I have 35 years of experience implementing MRPs and ERPs like BPCS, SAP, JDEdwards, ORACLE Enterprise among others homemade ERPs, and I'm looking very seriously those emerging ERP since I'm realizing great advantages that Businesses could take part of them.
most people will never understand an erp and of those that do, even fewer will be able to utilise them
much appreciated information
Back in the 70's they had these point solutions that were doing specific functions and its was a pain to have them talk to each other - and that gave birth to ERP. Now we are going in circles and saying lets kill ERP go back to best of breed solutions , sugar coat it will cloud and API capabilities and spend millions hiring people to integrate all of them when you could buy an ERP with less or equal cost and compromise on little bit on flexibility (or call it lack of process discipline). Also SAP, Oracle etc.. are constantly enhancing their products to provide tools to leverage latest and greatest trends like 'Digital Transformation', riding 'Intelligence Wave', RPA, Block chain etc... may be they did not watch this video, or , may be you have not seen what these ERPs are capable of in 2022, BTW ERPs are also on cloud now.
In my Opinion, ERPs are still very powerful engines. What I have seen happening is - they are not dying , instead they are becoming sort of 'Back Ends' to these very savvy point solutions like where you could click a photo of a receipt and submit an expense report, or some cloud OCR service (eg AWS Textract ) that ERP can now easily consume to provide AP automation or you can a get sleek analytics or BI solution that can serve your blue collar to white collar or the latest buzzz is Low-Code / No-Code solutions (eg MS Power Automate) where you can cook up a process flow in 15 mins that can , for example, build your own custom vendor onboarding portal that will create you Vendor master data without getting into the ERP.
So I am proud to live long enough to see the death of ERPs. look into its eyes as it takes its last breath.. But I am still waiting for that day.
He click baited you all. Everyone stating it isn't dying but yet evolving is 100% right.
I didn't realize that Salesforce was still considered a "Startup" at 23 years old...😅
Parcialmente cierto!!! Por supuesto un sistema ERP nunca va a poder abordar todos y cada uno de los requerimientos de los clientes internos de la organización, pero esto SIEMPRE LO HEMOS SABIDO, aquí tu propuesta no es innovadora, inclusive desde hace más de 10 años de viene trabajando fuertemente en soluciones a la medida que se puedan integrar a la base (ERP), sin embargo, esta opción a pesar que es muy utilizada es por mucho más costosa, ya que implica crear entornos de interoperatividad (API, Colas Rabbit MQ…), mantenimiento de los mismos, evolución de esos mismos entornos, lo cual representa un sobre costo para las empresas, que obviamente no hablo de las grandes empresas (ellas tienen cómo pagarlo). Por eso respeto tu punto de vista pero no lo comparto, creo que todavía el software ERP es la mejor opción para una empresa pequeña o mediana, inclusive partamos que la gran parte de estas empresa tienen el caso inverso, cuentan con soluciones aisladas que no permiten la interoperatividad y al ser así no pueden operar de manera óptima, llevándolos a requerir un ERP para ello, Por tanto el ERP está más vivo que nunca, lo único es que con el nuevo concepto de ERP Cloud.
ERPs are dead cloud or on premise, many big and smb companies do not care anymore. They will get the minimum number of users from an ERP just to have their basic needs covered and then they will just fk up the rest of their employees/resources (call it as you wish) to make data entry 5-6 hours per day to make data entries in excel sheets, ms access crappy logic, Jira Issues, Teamwork Tasks and real work time 2-3 hours. A very sad truth as I see it
You need to be introduced to the current Microsoft cloud offerings in Dynamics 365. It will give you a new perspective on this.
@@neillombard2726 You are 100% right.
A very good news since Im starting my first job tomorrow in ERP company
No its not .
SAP bought too much and followed the path of Oracle trying to fuze everything together. And trying to rebrand it as an “experience “
Eric:: ERP is dead!! Long Live ERP!!! Enterprise Resource Planning has had many avatars MRP - ERP - ERP+CRM+ SCM - Cloud ERP - Platform ERP ...and it keeps evolving.
1. ERP has become part of essential Utility - Tech Infa - like Electricity or HVAC in enterprises. It was expected because of the integrated orchestrated business processes that ERP enables. But if you want to keep your Secret sauce - unique business processes - you can always customise the vanilla ERP ( that may cost you tons of $$)
2. ERP has now evolved to add new dimension technology and platforms - Internet/ cloud/ AI ML based systems
SAP is the king of ERP Technology whether we like it or not! And they own almost 60% of tech space in ERP domain. Microsoft ERP post axapta etc acquisitions have matured to a very flexible integrated ERP system.
3. Best of breed is good but that is where we started 25 years back from best of breed ( local) to integrated ERP ( global)
You are probably biased or trying a new argument but it's still old wine in a new bottle!
I wrote the book ERP in Practice published by Macgraw hill education a decade back. All those points you have elucidated are covered in my book....which is a text book in many global universities.
Please try to give a balanced assessment when you discuss technology and business.
Thanks for sharing.
www.amazon.com/Erp-Practice-Jagan-Nathan-Vaman/dp/B0049VO8VI
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Airtable / Zapier / Make -> Futur
Great video that is very relevant to me. I will celebrate when SAP breathes its death gasp. It is stunning to me that it persists and I will gleefully replace my SAP work flows while wearing a grin.
ERP systems just won’t work when you have 20 legacy systems to interface
What about NetSuite?!
Good Evening Eric , For the Food Industrial Catering Unit which ERP Software System is best could you please suggest them I am from India
Hows odoo with open source 3rd party apps coming along?
ERP will be every company standard. Low price and small companies will use it like normal software. is it call death of ERP?