Friday, April 13, 2007

The Long Tailpipe - Shai Agassi's Blog

Very nice metaphor to distinguish between processes implemented within ERP from those complementing them:
The Long Tailpipe - Shai Agassi's Blog: "On the other hand, around that set of core processes we see a very large collection of edge processes that can be considered either ERP+ (such as employee performance management), or the other parts of a business suite (like advanced supply chain forecasting and optimization.) Some of these will be delivered as service oriented engines, with loose coupling to the core ERP, others will be composites that will be built and supplied on top of ERP and some other engine, sometimes these are shared engines while other times they are dedicated engines for that composite. In a sense these edge processes are the parts of the brain we educate after we are born."

Further on below, I really like Shai's reasoning about the need for process changeability to be enabled by IT:
"The desire of the CEO to have a faster changing company, regardless whether you are reacting or disrupting an industry, clashes today with the CIOs ability to respond to such change, unless they go to a well separated “ERP Platform”. The rapidly connecting world of complex supply chains requires well agreed and externalized APIs that carry data and process outside the boundaries of a single enterprise or a single industry. As such, an ERP platform becomes an essential part of the corporate strategy, not even the corporate IT strategy. It is essential to the corporate process and innovation strategy."

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