ERP to evolve into e-services

Electronic marketplaces will save static ERP products from becoming obsolete as companies look to move applications online, according to Sanjiv Sidhu, founder of i2 Technologies.

Sidhu says the electronic marketplace will provide ERP (enterprise resource planning) with a way to take advantage of the Internet. Business to business portals, he said, will enable ERP companies to sell complex applications as components instead of complete packages.

Robert Wayman, CEO of Hewlett Packard (HP) agreed, referring to e-services "the next big thing".

"These will be the next chapter of the Internet with applications and services online so anyone can get access anywhere to anything using these services," he said.

Greg Brady, president at i2 Technologies said: "It [e-services] extends ERP and procurement more effectively beyond its current abilities into one place."

However, Serge Wynen, principal analyst at ERP research house, ERPworld.com, claimed e-services are still in their very early stages. He accused ERP companies of suffering from "me-too" syndrome.

"Companies are pushed into the marketplace to maintain their competitive advantage, they have to invest in these areas as a way to accelerate acceptance of their technology.

"The US is highly trendy, technology driven and is ready, before Europe, to move into the next stage of ERP. The European vendors see the need to break up their complicated packages and adopt the Internet, but they are slowed down by the massiveness of their products, not to mention the high costs.

"Some people are still in the middle of a first implementation and are not ready to move onto the next stage. Some countries don't necessarily want to as they are still preparing for Y2K and the Euro."