ERP systems are designed and developed based on the operating environment within a business entity. Therefore Western ERP systems are developed based on western businesses' operating environment, or in other words Western business culture.
Currently Western ERP players dominate the Asian markets. As a result, Most Asian businesses are accustomed to 60-40 or 70-30 ERP implementation ratio, whereby the former refers to requirement compliance and the latter for customisation, usually done by their locally appointed dealers, not the vendors' own research team. This is because generally Asian manufacturers dominate the western economics as we are more competitive.
Therefore we need a bigger and more "competitive" ERP system in order to remain more competitive than the west. The results, "chaos" in ERP implementations! Project schedule and costs overrun. Disruptions as focus on customisation become top priority.
About 30 or 40 percent of customisation is considered highly substantial. An IT specialist will agree that heavy customisation is the main reason for ERP project failures. At the end of the day, the ERP system may have gone "live", but still considered a failure if the desired ROI is not achieved. Worst if it is performed by the dealer. It is universally known that customisation for complex technologies are best left to the researchers. You may maintain and accessorize or change the surfaces but not beyond.
What excites me about Malaysia market is that companies are beginning to invest again in ERP system due to the imminent GST implementation. The market has been slow for quite some time due to economic uncertainties.
Just like Malaysia, Asian businesses including those in developed countries like South Korea and Japan usually share a common set of characteristics, namely highly fluid, dynamic and versatility as compared to Western's straight-line and simplistic culture. Asian business culture is unique and different from the Western. This explains why our manufacturing dominates the world.
This is the main reason that Asian companies are still struggling with their ERP systems. Apart from that, most western ERP systems are designed for discrete-based manufacturing industries which are common in industrialized economies. Unfortunately Asian's economies, especially the developing countries are resource-based in nature and require Process-based or Formula-based manufacturing ERP system, which is very different from discrete-based ERP system.
With the release of our fifth generation ERP system, iContro G5, what truly excites me about the rest of Asian countries is iContro Software is now ready for regional and international expansion.
We have successfully replaced numerous top 10 ERP systems with higher efficiency and ROI. We believe we could replicate the same success stories across Asian countries as we share the same business culture. - Frank Lee IContro CIO.Asia
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