Comparisons of SAP and Peoplesoft ERP Software

Can one software maker do it all well? There are many software development companies in the industry that are still striving to release a single, complete, successful product of outstanding quality and usability. With their modular approach to decision support software, ERP vendors are on the right track; because attempting to cover all of the separate functions of the modules would be unthinkably large and complex--not to mention costly--for one vendor.

However, Compare SAP and Peoplesoft ERP software, if each individual module has a unique function, then each module can be a different product developed by a different vendor dedicated principally to the success of a single product.

Of course, if an ERP vendor can manage to avoid the "not-invented-here" syndrome, it could integrate some of the best existing tools from the various niche software makers. For example, rather than writing a finite capacity scheduler from scratch, an ERP vendor could purchase the rights to license a scheduling tool from an existing best-in-class tool provider, and integrate it with its other offerings. Indeed, the drive to integrate best-in-class software tools from different functions may be the dominant wave of the future for the ERP industry.

Another important strategic issue facing Compare SAP and Peoplesoft ERP software ERP is whether the enterprise decision support market is essentially homogeneous or heterogeneous. While every company's specific problems are different, many problems are variations of themes. Are the similarities strong enough to support a "mass market" approach to software? Or are the differences going to keep the manufacturing software market a wide-open arena of niche specialists, systems integrators, and solutions consultants?

The point may be moot, as this issue will likely be decided by cost. Integrated packages from single vendors are going to require a major up-front investment, but buying different modules from multiple vendors will probably require a lot of effort to get them to work together, and maintenance costs will be higher in the long term if we compare SAP and Peoplesoft ERP software. If the issue comes down to pay me now or pay me later, is it possible that these technology decisions could be decided by each company's financial situation, rather than by what the best solution is? We hope not.

For some industrial managers, ERP is the nightmare that keeps them awake at nights thinking "Is the MIS department going to take over my manufacturing floor?" Much of the force pushing software makers to develop better, more useful software has been coming from practitioners: IEs and OR types who know exactly what they need from a software package. Often these experts end up actually writing the best software, as well. However, several of the ERP vendors, notably giants SAPAG and Peoplesoft come from the information systems world, and traditionally focus on the MIS piece of organizations.

For engineers who have spent months locating and purchasing software that they know and like, being forced to adopt "corporate's package" may seem like one giant step backwards. Yet, the potential strategic advantages of enterprise integration are undeniable. One thing is certain: if you want to have control over the tools you are going to be using, you're going to have to utilize your engineering training and expertise to exert positive influence on the selection process. If you sit passively on the sidelines, don't be surprised if no one hears you.

Clearly, there are more questions than answers regarding the young ERP movement. That said, we are left with one final question: will all of this change result in ever increasing consulting bills? The answer: almost certainly.