Many IS professionals perceive ERP as a paradox. "How can a software company located in Germany, Netherlands or U.S.A understand the needs of my organization operating in Bangalore?" is the question they generally ask.

Many of them feel that custom software should work far better than packaged software. For many of them holding this view, the success of ERP is a paradox. What they miss out is the point that the core processes of most organizations are by and large, the same. Thanks to globalization, there has been a significant amount of uniformity, standardization and simplification of the core processes across the industry.

Some of the technologies such as EDI have even standardized the contents of critical documents, such as shipping and PURCHASE orders. Standard processes and procedures, for example, Letter of Credit, have seen a great level of standardization to suit International Trade. These developments permit COMPANIES in Germany and Netherlands to develop the world-class software that can be profitably used by a corporation in Bangalore also. By pumping in billions of dollars in understanding the business processed used by thousands of CORPORATIONS worldwide, the ERP software vendors also bring in world-class practices to any company that implements the ERP software.

In a similar vein, large ERP software vendors such as SAP & BaaN are also able to employ and retain thousands of software professionals who can continuously improve their ERP software product. No individual end user company can afford such large pool of software professionals. This is the secret of success of ERP. A possible analogy may drive HOME the point better. An average Indian has already realized the fact that a ready-made garment made using sophisticated technology can indeed fit him/her better than a street corner tailor. The highly sophisticated technology of Computer Aided Design to model human anatomy and Computer Aided Manufacturing tools to cut complex CONTOURS effortlessly at high speed, explain the better fit. Similar is the case of packaged software.

Many IS professionals perceive ERP as a paradox. "How can a software company located in Germany, Netherlands or U.S.A understand the needs of my organization operating in Bangalore?" is the question they generally ask.

Many of them feel that custom software should work far better than packaged software. For many of them holding this view, the success of ERP is a paradox. What they miss out is the point that the core processes of most organizations are by and large, the same. Thanks to globalization, there has been a significant amount of uniformity, standardization and simplification of the core processes across the industry.

Some of the technologies such as EDI have even standardized the contents of critical documents, such as shipping and purchase orders. Standard processes and procedures, for example, Letter of Credit, have seen a great level of standardization to suit International Trade. These developments permit companies in Germany and Netherlands to develop the world-class software that can be profitably used by a corporation in Bangalore also. By pumping in billions of dollars in understanding the business processed used by thousands of corporations worldwide, the ERP software vendors also bring in world-class practices to any company that implements the ERP software.

In a similar vein, large ERP software vendors such as SAP & BaaN are also able to employ and retain thousands of software professionals who can continuously improve their ERP software product. No individual end user company can afford such large pool of software professionals. This is the secret of success of ERP. A possible analogy may drive home the point better. An average Indian has already realized the fact that a ready-made garment made using sophisticated technology can indeed fit him/her better than a street corner tailor. The highly sophisticated technology of Computer Aided Design to model human anatomy and Computer Aided Manufacturing tools to cut complex contours effortlessly at high speed, explain the better fit. Similar is the case of packaged software.