Do you agree that COTS/ERP implementations makes your business mediocre at best?
One of the main value propositions of the packaged software (COTS/ERP) is relatively quicker implementation. Business processes are standardised. Your business receives so called ‘best practice’ implementation.
But is it a good thing? The so called ‘best practice’ is really a best practice? If every other business (like yours) is implementing so called ‘best practice’ then how it can be the ‘best’? Rather it is a ‘common practice’. It means you are using common practices in your industry vertical. You are implementing mediocre practice.
Let us get it right! By implementing standard (Out of box) COTS/ERP:
- You are implementing processes as designed by the software vendor
- You are not innovating much
- Your automation/process capabilities may not be much different from your competitor
Does that mean that:
- Business should not invest in COTS/ERP?
- Business should implement highly cutomise COTS/ERP software?
It is best to choose the business area that represents your uniqueness. This is your niche. More precisely your micro-niche. This differentiates you from the rest. This is where your stakeholders have unique experiences.
Let us explore some examples:
- Amazon website, on-click, recommendations
- Nike app
- Blackberry security suite
- Toyota Production system
Innovate in your micro niche and leave every thing else with COTS/ERP to handle. You need custom processes and software. You need skilled labor, high level of governance, foresight and agility. To be ahead in the game, you need special task force for this micro-niche. This is the area where you do not follow so called ‘best’ practice!