Saturday, April 10, 2010

In house developed erp risk facor

Why it is not advisable to have an in-house developed ERP

We must understand that development of ERP is not like other software development projects, which are normally carried out focusing on automation. We find such serious mistakes being committed by some big and small companies in India. The EDP department in most of the cases is responsible for such in-house development work. Though they do consult with outside consultants, the basic theme of ERP is completely found missing in these types of products.

Looking at the efforts and approaches, it is very difficult to believe that the EDP department will come up with such international standard ERP product. Though we do not rule out the possibility of someone must have succeeded it in up to some extent, but it's not advisable to do. The reason being that is, we should leverage when we have strengths and, instead of building up a new strengths, co-opt a partner for the missing strength.

Today, when quality ERP products are well within the reach of most of the companies, one should not opt for costly in-house development. This ERP is not at all ERP except integration. The essence of ERP is the free BRP, which is absolutely not happening with these products. If we describe this in-house development correctly, then we can say that such approach is typically observed in software development company where only the 'specification gathering and automation' takes place.

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