Authored by Michael Guerin
At a recent QLC (Quest Leadership Community) event in Calgary, I had the opportunity to provide discussion documents on two topics related to JD Edwards: “Best of Breed vs All-In-One” and “ERP Governance Across Different Functional Areas”. Here is some food for thought on each topic.
Best of Breed vs All-In-One
A decision to take on a standalone (BoB) solution and then integrate it (if needed) to your core system should not be done lightly if the level of respect it needs to get is high. You also need to consider areas where Oracle has extended their core solution with enhancements and acquired solutions - like transportation management, enterprise performance management, health and safety, environmental reporting and accounting, talent management, CRM, and spend management.
Other considerations include:
- How would the BoB approach affect your security set up?
- How much Master Data Management (MDM) will need to be done? A problem in this one area can often negate the perceived benefits if it is not done properly.
- Is the planned BoB solution one that supports integration with other core ERP? This is often the case, which can lighten the load.
- Conversely, are there inbound integration capabilities in your core ERP that would lighten the integration load?
ERP Governance Across Different Functional Areas
Peter Weill at MIT’s Sloan School defines governance as a “framework for decision rights and accountability to encourage desirable behavior in the use of IT”.
With the investment that most firms have in their ERP (and extended ERP) solutions, a framework to properly plan for, manage, govern, discharge and measure effective ERP projects and costs is a key requirement. Recent trends and news about security breaches and concerns should be on the radar of any governance committee related to technology.
What else should be considered when thinking about ERP governance?
- A larger firm vs. a smaller firm
- Time zone
- Compliance/local laws
- Local understanding and decision making
Over to you: what experiences have you had with standalone solutions or ERP governance? Share in the comments below! I’d be pleased to provide you with copies of the documents that were provided at this event - fill out the request here.