This is due to the fact that vertically integrated supply chains are often inflexible in terms of responding to the diverse stakeholder dynamics that are reshaping the ways in which organizations buy and sell in the emerging global economy.
In a 2002 article Forrester Research’s Navi Radjou linked the lack of flexibility to the inherent problems of enterprise-centric applications from vendors such as Oracle. The specific problem is that batch-based supply-chain tools “can’t support swift resolution of supply chain glitches.” The reason he gave is that “these apps need time to collect and synthesize data from multiple sources – even those unaffected by the exception at hand.”
Radjou’s conclusion that unlike “static, linear supply networks, the emergence of “adaptive supply networks” which will be powered by multi-partner processes that are event driven, real-world aware and self-regulating” coincides with my conclusions in Parts 6 and 7 of the Dangerous Supply Chain Myths series. (If you have the time please read or re-read both Part 6 and 7.)
In those postings, I referred to the meta-enterprise application which can create “on-the-go” real-world metrics that can be reliably incorporated into all purchasing decisions on a real-time basis to the benefit of all stakeholders.
from the August 9th, 2007 Procurement Insights post Double Marginalization and the Decentralized Supply Chain
It is coming up to being 4 years since I originally wrote the above referenced post. At the time, many of the leading SaaS-type applications of today were still moving within the realms of obscurity under the negatively connoted banner of bolt-on accessory to the big boys’ monolithic ERP platforms.
The big question back then, even with the advent of Extensible Markup Language or XML as a viable alternative to the cumbersome and expensive EDI standard whose users according to a 2001 Dale Neef book were limited to 100 companies worldwide, was the cost and purported complexity associated with exchanging data between the main ERP system and these annoying bolt-on applications.
In the finance/IT department driven enterprise world of the day, the absence of appreciation for outside solutions was reminiscent to the dismissive disdain IT departments originally had for personal computers when they first arrived on the scene. Some IT gurus at the time expressed the opinion that the PC was a passing fad. Don’t you just love the prognosticative prowess of mainstream pundits of the day!
This of course did little to help progress the exchange of data at all, let alone on a real-time basis. In fact, I can still recall be quoted $250K to start to build the bridge between a bolt-on application and an organization’s existing ERP system. Emphasis on the to start!
Of course the Oracles and SAPs recognized that the capture and sharing of data in real-time was indeed an important capability and in earnest they introduced their Projects Fusion and Safe Passage respectively, with much fanfare but little if any tangible results.
Ellison’s comedic arrogance belies the fact that Oracle’s Fusion Fizzled!
Having since 1998, worked on the development of Agent-based model solutions that would leverage the power of the Internet, the lumbering limitations associated with the persevering myopic view of timely data exchange throughout the enterprise industry, was at times disheartening and suffice to say frustrating.
But that was then, and this is now!
While waiting for the never to be realized promise of the industry giants such as Oracle and SAP to finally come up with a convenient and cost-effect means of both extracting and utilizing meaningful data at the point in time when it is needed most (before a purchase is made), versus analyzing an acquisition decision after the fact, the industry innovators found a way to do, and do it well.
This breakthrough has started to manifest itself in the form of Rosslyn Analytics exciting Extract Studio.
“Rosslyn Analytics has broken the technological barrier to integrate packaged enterprise applications with spend data in a pay-as-you-go apps store environment,” said Charles Clark, CEO of Rosslyn Analytics. “What we are doing to the finance and procurement applications market is what salesforce.com did to CRM – empowering users to obtain, transform and analyze spend data whenever they want and however they want with no deployment time.”
Based on the above statement by CEO Charles Clark the disruptive innovation company, which is now Rosslyn Analytics has changed not only the rules, but the game itself.
Towards the end of February or in the early part of March, I will once again welcome Charles Clark to the PI Inquisitive Eye TV Channel, as well as the PI Window on Business Show on Blog Talk Radio, where we will discuss at length this exciting breakthrough.
SPECIAL NOTE: Access today’s post as well as future posts regarding Rosslyn Analytics through the following link: http://www.rosslynanalytics.com/newspress/