Whither Go ERP Packaged Apps?

Judith Hurwitz recently wrote a great article entitled “Will Packaged Applications Sink Under Their Own Weight? Five Recommendations For Change”. Highly recommended reading, especially for Oracle and SAP apps users.

What appeals to me most about Judith’s article is that she has articulated very well the types of things that have been bubbling up in my own mind lately. Judith is actually a bit ahead of my own thinking, in that she has organized and clearly communicated those things that were just beginning to take shape for me. The old “best of breed” approach to ERP is an early solution iteration in response to the fundamental changes taking place in the ERP marketplace over the past eight or nine years.

Frank Scavo takes Judith’s ideas a step further with his own review of Judith's article, a blog post on the Enterprise System Spectator. Frank concludes that Judith, in her five recommendations, is essentially describing the essence of a service-oriented architecture. In my opinion, Frank hits the nail right on the head.

Now I’ll take it a step further. One of the risks inherent in SOA is the possibility of organizational stovepipes – organizational clusters, formed around processes or groups of processes, that fail to communicate with each other. While organizational stovepipes don’t necessarily need SOA in order to appear, the risk does seem to increase with an SOA environment. This is where social networking and Web 2.0 concepts come into play. Social networking, even behind an enterprise firewall, breaks down the organizational stovepipes by encouraging people to exchange ideas. Social networking keeps an enterprise communicating across functional boundaries even as the organization reforms around business processes. So maybe the realization of the value proposition of social networking in the enterprise is tied, at least in part, to the changes taking place in the ERP marketplace? Hmmmm…let me know what you think.

A Lesson In Caveat Emptor

I received a somewhat painful but memorable lesson this week on caveat emptor. As you probably recall, I’m in the process of switching from the world of PCs and Windows to that of Apple: specifically a new iMac and OS X. A challenge I’ve run into in the process of switching is that some of my heavily-used Windows apps don’t integrate well with apps in the Apple domain.

Microsoft Visio 2007 and Microsoft Projects 2007 are darn near irreplaceable for me. Most of that has to do with the fact that I know how they work and don't relish the idea of relearning the same functionality on new apps. So my idea was to simply bring those apps along with me. I could run a Windows XP virtual machine on my new iMac and happily cruise along with both Visio and Projects for some time to come. So I did some research, asked some Apple gurus, and discovered that VMware Fusion was the top-notch product for Apple-based VMs. About a week ago, I plunked down a few of my hard-earned dollars and purchased a copy of VMware Fusion 2.0 (“VMWF”). In retrospect, I should have known better than to buy any software in a version number ending with a zero – this was the ultimate triumph of enthusiasm over experience.

After my purchase of VMWF, I began working to convert my laptop data into a new virtual machine. My first clue that things were not going to proceed smoothly came early: the documentation and what I saw on the screen were not exactly the same. They were close, but not exactly the same. Still after some puttering, I managed figure things out and get the process going.

I encountered my second clue while converting the data on my PC laptop. According to the documentation, converting the data and moving it to my external hard drive should take about 45 minutes over a USB 2.0 connection for the amount of data I have. My experience was more like 6-plus hours. Now, I’ll admit that I push the envelope in my Windows environment…there are some pretty unique things I have going on there. Nevertheless, missing the documented target by a factor of over six is a pretty big glitch from my perspective.

Third clue: after moving the converted data to my iMac, VMware Tools won’t install. Without VMware Tools installed, the graphics and mouse movements are pretty jerky. In addition, there is almost zero integration between the apps running in the virtual machine and those running natively in OS X…not a good thing.

So after Clue #3, I hit the web to do a little more research. Turns out that there are quite a few VMware users having problems similar to those I’ve had…not all customers, but still a fairly significant number from what I can tell. In addition, there are quite a few virtual machine “experts” sharing the opinion that sometimes that’s just how things go with installing virtual machines; you just have to clean things out and try again. Fair enough – I’ve made cleaned off everything, freshly installed VMWF, converted my data, and so on four times in the past week. No success. I’m all done with “If at first you don’t succeed, try, try again” approach to these issues. Also tried various other fixes with no luck. In essence, I've burned the better part of a week on this little project without making any progress whatsoever.

So, finally admitting the ultimate geek defeat, I contacted VMware Customer Support. Got a service ticket number. Two days later, I’m still looking for a response. Seems they’re a little busy – no surprise there. So I’m pretty much done with VMWF other than trying to get a refund, although I’m not holding my breath on that. Realistically, I think I’m a few dollars poorer and stuck with some not-quite-ready-for-prime-time software. While that’s a sad story, it’s not really worthy of posting here. But that’s OK, because it’s not where this story ends. Sorry for the long setup, but here comes the good stuff now.

My experience with the desktop virtual machine thing got me thinking. I started wondering if enterprise customers running virtual machines were stuck in the same boat. The sales message is wonderful: save money by eliminating hardware, “Green IT”, and so on. But I wonder if those enterprise customers who bit on the message are really satisfied with what they got. So, I tap into my network by dialing up a few system administrator-types I know to hear their thoughts. While I did not build up a statistically significant sampling of all enterprise virtual machine users, what I heard from the folks I know was pretty interesting.

All the people I contacted stated that their use of virtual machines provided significant cost savings through the elimination of hardware and the reduction in power needs. However, there are trade-offs. I also consistently heard comments like “performance degrades quickly under heavy loads”, “requires more oversight to keep things stable”, and “works great as long as the apps configuration inside the virtual machine is standardized”. The latter comments have made me rethink my perspective on utilizing virtual machines.

The nature of the work I do with applications and technology pushes the envelope. I’m not much for standard configurations when I'm attempting to innovate. Nor do I personally have much tolerance for performance degradation or instability – those types of issues either get resolved through trouble-shooting (minor point: as a fine example of human inconsistency, in spite of my low tolerance for troube, I LOVE trouble-shooting work) or moving to another platform that’s more capable of getting the job done. The technology has to work for me…I don’t work for the technology. In regards to virtual machines, my opinion (and keep in mind that all of this is only my opinion – nothing more) is that they’re probably fine for basic work – standard, even repetitive stuff. Email, web browsing, spreadsheets, word processing, and other types of basic work or transactions. But I would probably be concerned about the viability of a virtual machine platform if I were doing anything too out-of-the-box: critical work with heavy loads or variety in the apps utilized in the virtual machine, for example.

Now I’m sure that virtual machine technology will evolve and get better as customer uptake increases. It could be that I'm just expecting too much too soon in the evolutionary cycle. However, on both a personal and a professional basis, I just can’t wait for the technology to improve.

Getting back to my iMac and me, we’ll probably junk the virtual machine idea altogether and try out some different alternatives: OmniGraffle as a Visio replacement and Open Proj as a MS Projects 2007 substitute. Worse comes to worst, I’ll keep my Windows PC around for awhile until I get this figured out...guess that could make me an "adder" rather than a "switcher".

On an enterprise basis, I’ll be following and recommending the following guidelines for now: 1) virtual machines offer great value so long as you can standardize configurations, stick with fairly basic work, and control the load; 2) if you don’t fit into these constraints, be careful about expecting too much too soon from what is still an emerging technology…caveat emptor.

Elegance Of Design

For those of you who have been reading this blog on a regular basis or following me on Twitter, you know that I've been considering a switch from the PC/Windows world to a Mac/OS X system for the past several weeks. Well, I finally took the plunge this weekend. In fact, I'm writing this particular post on my new iMac.

I've experienced several noteworthy highlights in working through my switch over the past weekend, including improved speed and stability. However, the single most outstanding highlight is my new appreciation for the importance of user interface design. In every instance where the computer system interfaces with the human user, the Apple system is markedly superior to my PC systems. The software's appearance and ease of use (the learning curve in switching is almost non-existent), the tactile response of the keyboard, the feel of the Mighty Mouse in my hand: all these factors have combined to make my initial experience the best technology experience I've had since...hmmm, come to think of it, since I bought an iPhone. Yup, when it comes to elegance of design, Apple gets it.

So, in the realm of Oracle apps, I have to admit that I'm not nearly as excited about the 11i EBS user interface. In fact, I've spent more than a little time this weekend fantasizing about how wonderful it would be if Oracle could come up with a user interface design that provides all the benefits that Apple has worked into their own UI design...at least in terms of the software user interface. Wouldn't it be great if a new user could sit down in front of the Oracle EBS, or PeopleSoft, or Siebel, or JD Edwards, or whatever other apps they own these days, and just start using it because the intuitive nature and ease of use designed into the user interface essentially eliminated any learning curve? Customers would really experience a substantial, measurable benefit from the elegance of user interface design. As I write this, we're a pretty far cry from realizing this dream in the Oracle apps space.

The good news here is that Oracle has a team focused on user interface design. This team leads a program known as the Oracle User Experience, which is intended to use a customer-centric process to deliver high-quality user interface designs. Even better news: you can participate through the Oracle Usability project. Oracle is actively seeking customers to engage in the design process. This is the opportunity for customers to help inject ease of use and intuitive design into the Oracle enterprise apps they use.

After my switch to Apple this weekend, I really understand the importance and benefits of design. Oracle customers can drive the same importance and benefits in their enterprise apps, simply by getting involved. So get involved.

Running The Rodeo

So I'm sitting here on the train platform at 5:00 a.m. on Columbus Day. It's dark, cold and windy in Southern Cal this morning (the Santa Ana winds are raging), but my mind is racing at hundreds of miles a minute (again...a common occurrence at this time of the day). It's the economy that's on my mind, especially the impact of the economy on Enterprise Apps customers. I have several thoughts on the matter. They make make sense or they might not be worth the time it takes you to read them. Take a read and let me know what you think.

I think we have a "Black Swan" situation evolving in the financial markets. The shut-down of world-wide credit markets, to the point where lenders won't even lend to each other, is definitely large-impact, hard-to-predict, and a new experience for all of us. The impact is even greater than it would have been in the past due to huge recent advances in the integration of global markets. In the short run, the past two weeks have been a mess - early international indicators are that today will be substantially better today (October 13, 2008), but it's hard to say what happens after that. While I don't believe this is an economic melt-down by any means and that the global economy will recover in due time, I also believe that we're in for slower economic conditions over the next little while.

It's also important to note that we really haven't yet felt the disruption from the market uncertainty and upheaval of the past few weeks and months. It typically takes about six months for the waves from the financial markets to ripple across the pond and really start to make waves where you and I do business. That's not to say that some of us are not feeling the impact already; I just think we'll see a much bigger impact later on. I'd suggest that many of us will begin to feel the real impact during the first quarter of calendar year 2009. For Enterprise Apps customers, that will likely include a slow-down in the purchasing of new apps and technology...probably okay to anticipate that same slow-down in upgrade licensing too.

My folks were both children of the Great Depression (no, I don't think we're doing that again now...just stop thinking that way! This is more like a big pothole on the highway of life than a Great Depression-type of event). Whenever faced with uncertain times, their mantra was "Let's do the best with what we have." The idea was, rather than replacing a car or an appliance when the economy got a little tight, they would simply make the extra effort to squeeze the maximum value out of the things they already owned. I suspect we'll see quite a bit of this behavior in the enterprise apps space over the next few months - a slow-down in spending for new apps and technology until things start looking better.

So, if we're apt to see a slow-down in purchasing new apps and technology, how will customers continue to leverage IT in making progress of their various initiatives? By squeezing more out of what they already have (customers will also working to reduce post-implementation ownership cost, but that's another story entirely...best told by my friend Vinnie Mirchandani). This is where talent time kicks in: the game over the next several months will be less about buying what software vendors are selling and more about customers getting maximum value out of what they already own. The latter requires access to talented people, either in-house or through carefully selected partners.

Where I grew up, it's a big event when a rodeo comes to town. Everyone in town shows up and it's a big event that takes all weekend. While the wranglers and cowboys are the stars of the show, it's the folks behind the scenes (the rodeo clowns, the event manager, the handlers, etc.) who really make the whole thing work. A rodeo event offers enough prize money, the wranglers and cowboys will show up. Assembling a good team behind the scenes...that's the trick to a successful rodeo. For the next little while, it's the folks behind the scenes in IT - those that can keep the environment running and extend functionality without investing in new tools or technologies - who will be the stars of the rodeo.

Put another way, those who can use underlying apps technology to extend the functionality of those apps will likely be busier than those whose skills are simply in implementing those apps. In the Oracle apps space, someone with skills and experience in building new XML/BI Publisher reports or BPEL-based business processes will likely be more in demand that someone whose skills lie in implementing specific application modules or suites. Premium skills in leveraging Fusion Middleware to extend the functionality of Oracle apps will be in high demand. Overall, apps customers (regardless of whether they're Oracle customers or not) will be competing to trade out skills on their respective teams, replacing apps implementers with those skilled in extensions, enhancements and maintenance...the folks who probably work in your enterprise right now "behind the scenes" or "out of the spotlight".

If you manage an enterprise IT organization, you might want to think about ways to make those employees or partners who do the enhancement and maintenace work feel valued right now. If you are one of those people who really runs the rodeo...rise up, straighten your ties, polish your shoes, and get ready for your day in the sun.

Keep Sight Of The Target

I had an interesting experience this weekend that really got me thinking about the approach to enterprise applications. Hang with me for this little ride and see if it strikes you the same way.

My back gives me a little trouble most of the time and some big trouble ever few years. No big deal, I've learned to deal with it, but the big trouble events usually drive me to the doctor's office. Last Sunday morning as a big trouble event, so I called the Urgent Care center Sunday morning - explained the situation and they had me come right over. After checking in with the receptionist, the nursing staff pulled me into an exam room and explained their new "Proactive Office Visit" procedure. The idea is that, while a patient is in the office, they'll check their medical records and see if any tests, shots or other procedures need to be done. If so, they'll get done while the patient is in the office. So, I think to myself, they're going to catch me up on everything while I'm here and save me from the trouble of future visits to take care of this stuff...pretty slick idea at first blush. So they ran a few tests, took some x-rays (ironically, as it turns out, the x-rays were of my back) and gave me a pneumonia shot, after which they told me "...you're all done, you can go home now." This last statement was a bit troublesome to me, as I had yet to see the doctor about the problem that brought me to Urgent Care in the first place. I shared my concern, which caused quite a bit of puzzlement with the nurses, as their procedure for the "Proactive Office Visit" instructed the nurses to send patients home once the procedure was complete. I wound up have to be rather insistent, in my own gentle and understated way, in order to finally see a doctor and get some relief for my back pain.

The issue here is that the nursing staff, in following the "Proactive Office Visit" procedure, lost sight of the customer target. In this case, I was the customer and the target was relief of the back pain I was experiencing at that particular moment. The "nice to do" stuff got addressed easily but the "must do" item fell out of sight for a bit.

I think those of us in the enterprise applications world sometimes get caught up in the same type of problem. We see spiffy technology and immediately begin to think of all the "nice to do" value we can bring to the enterprise (social networking, slicker reports, flashier user interfaces, etc.). We sometimes forget that our customer has a list of "must do" items that, at least in his or her mind, take precedence over the "nice to do" stuff. Much of that "must do" stuff relates back to the categories of better, faster or cheaper (can I get better information to make better decisions, can I deliver a service faster, can I deliver a good or service cheaper...that sort of thing). I'll take it even further...in many enterprises, IT is loosing it's seat at the strategic decision-making table specifically due to failure in addressing that "must do" list. We're so dazzled with cool technology that we've lost sight of the target.

So my thinking here is, as you consider your incorporation of new technology to extend your current enterprise apps functionality, maybe you should make your decisions in light of customer "must do" lists? Ditto for enterprise application upgrades, whether they be EBS, PeopleSoft, JDE, Siebel, Fusion Apps, Retek, SAP, or whatever. Technology is an enabler, much in the same way that a hammer is an enabler for building a house...the trick here is to keep sight of the target. Are you building houses or just delivering a state-of-the-art hammer?

I think this may be a core idea that I'll want to explore and discuss further at Oracle-related conferences over the next year or so, preferably drilling from abstract stuff (like this post) down to the details of getting it done. Who would have thought I'd find a silver lining like this from a little pain in the rear? Find the comments and let me know what you think.

The News Just Keeps On Comin'

OpenWorld 2008 may be over, but the news out of the Oracle community just keeps on comin'...

Fusion Middleware Webcasts

The Oracle Fusion Middleware Product Management team, the folks who sponsor the Best Practice Centers dedicated to extending Oracle Applications functionality with Fusion Middleware, is conducting a series of webcasts in October and November (links are to session invitations):

• Leveraging the Enterprise Service Bus with the E-Business Suite: October 7, 2008 at 9:00 a.m. PDT

• Consuming PeopleSoft Pages Using WSRP in WebCenter: October 14, 2008 at 9:00 a.m. PDT
  

• Building a Complex Web Application Using ADF and Siebel: October 21, 2008 at 9:00 a.m. PDT
  

• JD Edwards EnterpriseOne and Fusion Middleware: November 4, 2008 at 9:00 a.m. PDT

I think the last session will be especially interesting for JDE users. Oracle just launched the JD Edwards Best Practice Center during OpenWorld last week, so most of the information in this particular webcast should be new stuff.

So save the dates for the sessions that interest you...and be sure to let me know how the sessions go for you.

Meru Networks Live On R12

Meru Networks announced today that they've standardized on E-Business Suite R12 (thanks to Maggie Sims at Blanc & Otus for bringing this news to my attention). Partnering with NaviSite, they implemented and went live in four months. So add wireless infrastructure solutions provider Meru Networks to the growing list of companies live on R12. Like I said in an earlier post, R12 is starting to build up some momentum.