{"id":26,"date":"2006-06-02T09:52:59","date_gmt":"2006-06-02T17:52:59","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=26"},"modified":"2006-06-02T09:52:59","modified_gmt":"2006-06-02T17:52:59","slug":"erp-versus-soa","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/erp-versus-soa\/","title":{"rendered":"ERP versus SOA"},"content":{"rendered":"<p>At <a title=\"Infoworld\" href=\"http:\/\/infoworld.com\/\" target=\"_blank\">InfoWorld<\/a>&#8216;s <a title=\"Infoworld executive forum on SOA\" href=\"http:\/\/www.infoworld.com\/event\/soa\/march\/\" target=\"_blank\">Executive Forum on SOA<\/a>\u00a0in March more than one speaker voiced the opinion that <a title=\"ERP\" href=\"http:\/\/en.wikipedia.org\/wiki\/Enterprise_resource_planning\" target=\"_blank\">ERP<\/a> vendors had better watch out because <a title=\"Service Oriented Architecture (SOA)\" href=\"http:\/\/en.wikipedia.org\/wiki\/Service-Oriented_Architecture\" target=\"_blank\">SOA<\/a> would soon be a major challenge.\u00a0 What these SOA evangelists are saying is not that ERP functionality is going away, but that the\u00a0current generation of monolithic systems is being replaced with a more modular\/componentized approach.\u00a0\u00a0Next-generation ERP systems will carve up functionality into smaller easier-to-maintain interoperable services that are orchestrated\u00a0by SOA tools.<\/p>\n<p>The concept of ERP was that a single system could house all corporate data.\u00a0 Whether you were in finance, HR or manufacturing, given appropriate access rights, you could see any piece of corporate data from anywhere in the company.\u00a0 Prior to ERP, data would flow from one departmental system into another, and tasks like tracking the location and status of an order\u00a0could be time-consuming.\u00a0 ERP tried to solve that problem by aggregating\u00a0data\u00a0into\u00a0a single unified system.\u00a0 The selling point of ERP was that a single system could be bought that required no service work to integrate many smaller component systems.<\/p>\n<p>But while ERP eliminated the integration of multiple systems, successful ERP implementations usually required extensive customizations.\u00a0 Out-of-the-box ERP software seldom exactly matched the desired business processes, and getting the system to work the way that you wanted it to required significant amounts of customization.<\/p>\n<p>Implementing and supporting ERP\u00a0is expensive and time consuming because:<\/p>\n<ul>\n<li>Costs to implement and customize are very high<\/li>\n<li>Costs for the\u00a0annual license renewal are high<\/li>\n<li>Costs to upgrade or switch to a different vendor are very high<\/li>\n<li>The average time to implement an ERP system is one to three years<\/li>\n<\/ul>\n<p>Many companies have paid huge amounts of money to create custom ERP implementations. Technology changes rapidly and those companies now find that to upgrade their customizations to newer versions of the software will be very expensive.\u00a0 In an <a title=\"94% of SAP R\/3 customers have not migrated\" href=\"http:\/\/ipcommunications.tmcnet.com\/hot-topics\/cap\/articles\/1245-oracle-offers-support-capabilities-sap-r3.htm\" target=\"_blank\">article<\/a> this week, Oracle estimates that 94% of SAP customers have not yet migrated from the legacy R\/3 system.\u00a0<\/p>\n<p>Because of\u00a0ERP&#8217;s high cost in terms of time and money, the IT budget of many organizations often has little room left for pursuing any other initiatives outside of ERP.\u00a0 To top that off, individual modules within an ERP system tend to be mediocre in quality and capabilities.\u00a0 Rather than to focus on a specific application category,\u00a0the ERP vendor needs to spread development resources across all modules needed in an ERP system.\u00a0 These can include manufacturing, finance\/accounting, warehousing, logistics, HR, marketing and strategic management functionality.<\/p>\n<p>There is an ongoing <a title=\"BoB versus ERP\" href=\"http:\/\/www.line56.com\/articles\/default.asp?ArticleID=6903\" target=\"_blank\">debate<\/a> about the advantages of using a single vendor&#8217;s ERP solution or whether integration of <a title=\"Best of Breed (BoB)\" href=\"http:\/\/en.wikipedia.org\/wiki\/Best_of_Breed\" target=\"_blank\">Best Of Breed<\/a> (BoB) solutions is a better approach.\u00a0 An integrated BoB approach usually provides much richer solutions.\u00a0\u00a0<a title=\"Users prefer BoB to ERP\" href=\"http:\/\/www.eweek.com\/article2\/0,1895,1773574,00.asp\" target=\"_blank\">EWeek found<\/a> that users prefer the BoB approach, but often because of politics, the company will select a single-vendor ERP solution.\u00a0<\/p>\n<p>ERP based on SOA will promote the BoB approach.\u00a0 Customers will have more choices and be able to pick and choose services from any vendor.\u00a0 Modern IT architectures will be based on SOA and it is inevitable that components of today&#8217;s ERP systems will become services within this infrastructure.<\/p>\n<p><a title=\"Formtek, Inc.\" href=\"http:\/\/www.formtek.com\" target=\"_blank\">Formtek<\/a> has seen the migration towards SOA as being inevitable.\u00a0 That&#8217;s why we&#8217;re prepared to work in that environment.\u00a0 We&#8217;ve written our <a title=\"Formtek document and content management web services\" href=\"http:\/\/formtek.com\/products\/sdk.shtml\" target=\"_blank\">document and content web services<\/a> from the ground up to play well in an SOA environment.<\/p>\n<p>The storage of and management of unstructured data is an essential component for almost\u00a0every business process.\u00a0 Offered up as a service,\u00a0unstructured data management\u00a0could easily\u00a0be exposed and utilized\u00a0company-wide.\u00a0 In the past document solutions tended to be departmental and often one company had many different solutions across the company.\u00a0 Plugging in\u00a0the Formtek\u00a0unstructured data management service into the SOA infrastructure can provide a consistent consolidated approach that can make the data available enterprise-wide.<!--2e595c1c0c3f520792ceb1db97682539--><\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Ferp-versus-soa%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.reddit.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Ferp-versus-soa%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" 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Google Reader)\" \/><\/a><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>At InfoWorld&#8216;s Executive Forum on SOA\u00a0in March more than one speaker voiced the opinion that ERP vendors had better watch out because SOA would soon be a major challenge.\u00a0 What these SOA evangelists are saying is not that ERP functionality<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/formtek.com\/blog\/erp-versus-soa\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-26","post","type-post","status-publish","format-standard","hentry","category-content-management"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/26","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=26"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/26\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=26"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=26"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=26"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}