Good coverage of excellence in software development: the focus is on the right tools for the right job. A system that can integrate multiple organizations, to the degree that the headquarters adds value to the business processes of the subsidiary, has the qualities of an industry standard.
Enabling the autonomy and the flexibility of the subsidiary so that it can best meet the needs of its customers is the essence of a 2-tier ERP architecture. The choice of solution at the subsidiary and the extent of integration is a matter of governance. What's important is that the subsidiary have a choice of solutions so that it can select the one that best-fits its needs (e.g., functionality, budget, timeline); and that the points of integration are driven by business needs, carefully balancing between the need for subsidiary independence and the headquarter's desire for network-wide visibility.
While it is welcome to have an integrated approach for the ERP systems of the head quarters and the subsidiary companies for the financial data consolidation and easier reporting for the top management, we also need to preserve the autonomy of the subsidiary in decision making especially for the activities like purchase. Since the managemnt of the individual sunsidiaries is responsible for day to day running of the business, any imposing of say a paryicular vendor or a particular rate for an item purchase will hamper the the strategic decision making powers of the individual subsidiaries. So let them run their own business and make it profitable by using their own strategies for purchase and sale. They should not have a feeling of the big brother watching.
Dave,there is definitely a role for best of breed applications to extend the functionality of ERP. The ideal solution, which is one that SAP offers, integrates not only the ERP systems of subsidiaries and headquarters, but provides a technology platform that enables integration of other applications, irrespective of vendor. Thus, true business network integration.
Sheila, thanks for your insight.I agree that an integrated solution is the best means to provide the necessary visibility.However, I would argue that in many cases a best of breed approach can offer a lot more benefits and functionality than the single ERP approach.There are many factors to analyze in making a determination on which approach is best, but I would add best of breed to your options versus only single or 2-tier ERP options.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.