Wednesday, August 15, 2007 Robillo: ERPs now firmly in Davao By Oliver Robillo IT Talks
IN THE last few years, industry watchers have seen the increased adoption of Enterprise Resource Planning (ERP) software systems -- especially from SAP, Oracle and Microsoft -- by Davao-based companies.
And I'm not referring to multinational companies, but to homegrown, medium-sized corporations that software providers call their "mid-market."
In the past, Davao companies relied on either internally developed systems (making use of off-the-shelf software products), or systems created by third-party providers in the city. Smaller operations entrusted their internal data processing requirements to freelance programmers -- even today.
But with the increasing trend of globalization, and the shrinking of the international marketplace, Filipinos have begun to realize the need for more robust and sophisticated software systems.
Such systems would have to address management's demand for up-to-the-minute information, which the latter needs for making informed decisions.
ERPs are software used by companies to plan and administer their resources, and keeps management on top of their various departments: accounting, sales, human resources, inventory, etc.
While reliable software development houses in Davao have been able to develop systems that address these departments individually, not one has achieved a single, integrated system that can rightly be called "ERP".
Enter SAP, Oracle, and Microsoft. While these three have made forays into the Philippine South before, it is only now that we see their presence firmly established in Davao City.
First there's OBTech, a NEC company based in Singapore, which carries SAP Business One, SAP All-in-One, and R/3. For the Davao market, SAP Business One has the most promising future. Then there's FastTrack, with offices in Landco Corporate Centre, and they also offer SAP Business One.
For establishing a presence for Oracle, especially its ERP system called JD Edwards EnterpriseOne, we have Bo Miranda, the Oracle field agent.
Microsoft Dynamics, the division of that software giant that owns their ERP line, is represented in Davao by Raffles, through Digital Interface.
Having more companies deploying ERPs is actually a beacon of hope for our IT industry, and for the local economy as well. We can safely assume that companies in First-world countries -- our potential clients and development partners -- are making use of ERP software.
Therefore, if our exporters, for example, would like to penetrate the markets of developed countries, their being equipped with ERP systems is an excellent first step.
Why? For one, transacting with foreign companies requires that both parties are able to communicate properly. Through ERPs, two companies can integrate their businesses more seamlessly. Also, having an ERP system in place gives the owning company a more stable and professional image.
Mid-market ERPs cost upwards of 1.5 million pesos -- and that does not yet include the cost of implementation and staff training. Looking at it this way, most Davao companies would easily be put off by the staggering investment required to deploy such a piece of software.
However, ERPs are all about resources management and the capability to forecast business activities with a comfortable degree of accuracy. In the long run, Enterprise Resource Planning programs are a boon to any company that uses them.
