ERP has always been extremely expensive software. I never really understood why, but I guess it all starts because the cost of failing to deliver can be much much worse. It goes into the psychology of the ‘you get what you pay for’ so, if you were a manager you wouldn’t run a billion dollar company with a software that costs a few hundred dollars would you? And, if you are about to pay millions for a piece of software you might as well ask the software vendor for any customization that comes to your mind. No matter how crazy the demands, the vendor’s sales people always say yes and then, one thing is for sure: those customizations make the software more complex and difficult to work with. Your employees will complain and fail using it, the ERP will fail to deliver and the manager will run back to the vendor to buy some expensive after sales support. This deadlock process was -and still is- feeding dollars to huge companies such as Oracle and SAP. This IS their business model. This IS changing. How? Read on.
ERP will be cheap, even free
|Cloud based SaaS ERP will continue pushing ERP prices down|
How low can the prices get? Well, even now, the cost of an online (cloud) ERP is around $5 to $10 per user per month which is a cost every business can more or less afford. The cost can get even down to zero from those cloud ERP vendors that will be able to offer Freemium plans. Not all vendors will afford to offer a free -limited feature- plan to their user base but some will definitely do.
ERP will be social
Yes, I know everyone is talking about this but, the truth is, no-one has really implemented that feature as of yet. Yammer is on its way of doing a great job by building a social communication platform that can integrate data coming from multiple business software on a single feed/timeline. This is the beginning of a whole new concept in business; social entities will not just be confined to chat and communication messages but operational information will get their place in the social feed/timeline: manufacturing processes, sales events, inventory alerts, EDI (Electronic Data Interchange) alerts et cetera can get a social substance and be distributed to the correct people inside the organization or even outside of it.
|Operational information can appear in the timeline of the users of a social ERP within the organization|
Adding operational info in one’s organization social feed/timeline will bring collaboration to a whole new level introducing significant improvements both in terms of optimizing processes and minimizing mistakes due to miscommunication.
ERP will be fun to use
Business software makers have already began looking into concepts that exist for years in the gaming industry. By implementing user interfaces that dynamically interact with their users to offer virtual rewards under certain conditions (for example if specific key performance indicators are met), the otherwise boring business software can instantly get more interesting and fun to use. If users are happy using a software, their productivity will increase as well.