Is BPM the Beginning of the End of ERP?

From Jan Baan, former head of BAAN Corporation …

In a recent article, Jack Vaughan quoted Jan Baan as saying, ‘The successor of ERP is BPM….ERP is becoming the model of complexity. It has become too complicated.’ Baan is the CEO of Cordys and former head of Baan Corporation, an ERP vendor. BPM [business process management] is the leading edge of a major change in enterprise systems.

Much has changed since the heyday of ERP. The internet and internet technology has changed communications and integration. Businesses are on-line and accessible from anywhere, any time. The marketplace has become global for all enterprises, not just large companies.

We are in a state of transition to a new business paradigm. The full transformation of enterprise systems and the enterprise will involve BPM, loose coupling of business capabilities will provide an enterprise architecture model from a business perspective.

My Thoughts…

BPM software and ERP software attack very different problems.

Enterprise Resource Planning [ERP] software provides functionality to plan and manage resources. The most key resource being ‘cash’. In most companies, the users of ERP software log in and perform their tasks. No one will know that tasks have been completed unless they log in to see if something has changed. If you want to let someone know that you have performed a task, you must contact them [email, phone, etc] to let them know.

 Business Process Management [BPM] software provides functionality to manage business processes. A person is charged with performing a task. Once they have completed that task, the person [or persons] performing following tasks are notified automatically. Most BPM platforms provide functionality to automate steps/activities. Programs can be triggered to perform mundane tasks that computers are well equipped to complete.

It seems obvious that these software packages will enhance, not replace, each other. Further evidence shows large ERP vendors are acquiring BPM vendors. They can see the synergy as well.

Looking into my crystal ball, I believe that the main ERP players will be acquiring or creating BPM functionality to enhance their ERP offerings.

Your Thoughts…

What does your crystal ball say?

Keeping it Real!

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