Is BPM the beginning of the end of ERP?
In a recent article, Jack Vaughan quoted Jan Baan as saying: ‘ERP’s successor is BPM … ERP is becoming the model of complexity. It’s gotten too complicated. ‘ Baan is the CEO of Cordys and a former director of Baan Corporation, an ERP provider. BPM [business process management] it is the forefront of a major change in business systems.
Much has changed since the heyday of ERP. The Internet and Internet technology have changed communications and integration. The companies are online and accessible from anywhere and at any time. The market has gone global for all companies, not just the big ones.
We are in a state of transition towards a new business paradigm. The complete transformation of business systems and the enterprise will involve BPM, the flexible coupling of business capabilities will provide an enterprise architecture model from an enterprise perspective.
My thoughts …
BPM software and ERP software attack very different problems.
Enterprise resource planning [ERP] The software provides functionality for planning and managing resources. The most important resource is “cash.” In most companies, ERP software users log in and perform their tasks. No one will know that tasks have been completed unless you log in to see if something has changed. If you want someone to know that you have completed a task, you should contact them. [email, phone, etc] to warn them.
Business Process Management [BPM] The software provides functionality to manage business processes. One person is in charge of performing a task. Once they have completed that task, the person [or persons] that perform the following tasks are automatically notified. Most BPM platforms provide functionality to automate steps / activities. Programs can be activated to perform mundane tasks for which computers are well equipped.
It seems obvious that these software packages will be improved, they will not replace each other. More evidence shows that large ERP vendors are acquiring BPM vendors. They can also see the synergy.
Looking at my crystal ball, I think major ERP players will be acquiring or creating BPM functionality to enhance their ERP offerings.
Your thoughts …
What does your crystal ball say?
Being realistic!