I’ve run across enough blog posts alluding to the “dangers” of industry-specific solutions that I can’t help but think that there must be some misunderstanding about this topic. At Tensoft, we have specialized in industry-specific solutions for over 20 years. We know first-hand how beneficial our products are to our customers and partners. I suspect that part of the issue is simply terminology.
“Industry-specific ERP” often seems to be used to describe an ERP system that provides a “complete” system (General Ledger, Accounts Payable, Accounts Receivable, etc.) that has unique functionality for a specific industry. By that definition, I would heartily agree that Industry-specific ERP is dangerous, since it’s a huge undertaking to create and maintain a complete ERP system. Only the top tier, established ERP vendors – or a really well-funded newcomer with truly breakthrough technology - can afford to do this well. The problem is that the distinction between industry-specific ERP and industry-specific solutions seems to have gotten muddled.
An industry-specific solution is intended to integrate with one or more of the big ERP systems, extending their core functionality for industries with such unique needs that an out-of-the-box horizontal ERP system would fall short. These solutions are often called “add-ons” or “best-of-breed software.” What Microsoft – and all of the other big ERP players – have known and have been telling their channel for years, is that “industry-specific solutions” are what they believe is needed to deliver the last mile of functionality to their ERP customers. Without these solutions, customers in industries with unique needs have no choice but to: 1) customize their system themselves, at considerable initial expense and in a never-ending spiral of ongoing upkeep; or 2) live with inefficient work-arounds that may end up costing as much as those expensive customizations in terms of lost opportunities and inefficiencies. Industry-specific solutions (or “add-ons” or “best-of-breed) have the significant advantage of being commercial products, with both user communities and a developer community to back them up. This is a huge benefit, especially in the mid-market. Large enterprises can afford to staff and maintain development and support teams for customized back-office solutions but must do so with the full knowledge that it’s a big financial commitment to maintain software solely for their own use.
Tensoft’s approach to industry-specific functionality has always been to determine how far standard ERP functionality will take our unique industry customers, and then to extend the ERP system for the industry’s needs by developing only for the areas that are unique. For example, our fabless semiconductor customers need a “reverse Bill of Materials,” (BOM) so a standard ERP Inventory module is extremely challenging – if not impossible – for them to use. That’s the point at which Tensoft Fabless Semiconductor Management Solution, Tensoft SemiOps, begins. Tensoft SemiOps is added on to Microsoft Dynamic’s core accounting and financial capabilities -- as well as its technology stack -- providing a seamless integration for the customer, and a solution that truly meets company needs. It’s that simple and not in the least scary. Just ask, and we’d be happy to tell you more about how an industry-specific solution can change your life!
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies. However you may visit Cookie Settings to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.