If your business is looking for a new integrated IT Business Solution, what is your vision with regards to the type of solution you are looking for?
- An out of the box ERP solution that covers all the basic process functions/ business processes within a business?
- A very specific niche industry solution that meets your particular industry processes.
- A mix of 1 and 2, being an ERP solution with a level of industry specific functionality that meets your business requirements til certain extend.
In this article I would like to share with you how to discover the depth and quality of point 3 and qualifying whether it is a possibility. I assume here that this is the preferred solution for your business given it is going to provide your people with the most benefits.
Industry specific
Distribution/ Wholesale is not industry specific. Distribution of liquor is completely different from distribution of whitegoods for example - the pricing models, compliance with the government and bonded warehousing.
And the same is valid for Retail, Financial Services and other core industries.
Therefore we could conclude that industry specific should be more specific. A way of measuring/ checking is with the SIC (Standard Industrial Classification). Industry specific should be at least 2-3 codes deep and therefore software vendors/partners providing ERP solutions that cater for that niche level.
It is relatively easy to verify if software vendors/ partners are doing this by looking to their website, references, looking to the industry focus of their marketing activities, checking if they are a member of certain associations and attend key industry events.
Once you engage with a software vendor/ partner, check if they speak your industry language and know your key business challenges related specifically to your industry. These are critical checkpoints to make sure you not only select the right solution but also implementation partner.
What does this actually mean? How should it reflect in an ERP solution? When an industry specific or vertical solution for an industry is mentioned, I envision a niche solution in a specific part of the supply chain that addresses specific business challenges that occur in that industry. Let me give you an example.
Manufacturing is not industry specific; manufacturing widgets (discrete with a make-to-stock manufacturing policy) is completely different from making bread rolls (semi process, with batch manufacturing policy). The manufacturing policies, the flushing methods (backwards and forwards), demand forecast models, Bill of Material versus Recipients, by-products, co-products are some of the elements that are different.
Distribution/ Wholesale is not industry specific. Distribution of liquor is completely different from distribution of whitegoods for example - the pricing models, compliance with the government and bonded warehousing.
And the same is valid for Retail, Financial Services and other core industries.
Therefore we could conclude that industry specific should be more specific. A way of measuring/ checking is with the SIC (Standard Industrial Classification). Industry specific should be at least 2-3 codes deep and therefore software vendors/partners providing ERP solutions that cater for that niche level.
It is relatively easy to verify if software vendors/ partners are doing this by looking to their website, references, looking to the industry focus of their marketing activities, checking if they are a member of certain associations and attend key industry events.
Once you engage with a software vendor/ partner, check if they speak your industry language and know your key business challenges related specifically to your industry. These are critical checkpoints to make sure you not only select the right solution but also implementation partner.
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