Editorial

By Richard N. Stover, Publisher

Our last issue (May/June) introduced an new section of the Magazine on Enterprise Resource Management (ERM), a trend that we see becoming very influential on Document Management. Fortune 1000 companies are spending millions of dollars per installation for the ERM or ERP (Enterprise Resource Planning) capability. We have chosen the name ERM rather than ERP because we see the ERP systems (what vendors are delivering) being integrated with Electronic Document Management (EDM) and Product Data Management (PDM) systems to deliver the full enterprise requirements. We believe that organizations want to manage their total resources (assets), hence the term "Enterprise Resource Management." And they will manage those resources by employing ERP, EDM and PDM systems.

Currently we are seeing two things happening: EDM companies are scrambling to interface and partner with ERP companies. Why? Because the ERP companies are charging "big bucks" to install their comprehensive capabilities. And since the customer is spending a major budget for an ERP installation, any potential EDM vendor had better provide an interface to that system. The second driving force is that any manufacturing company that delivers customized products (the current marketing trend where a consumer wants a customized* automobile, appliance, etc.), will need the PDM system tightly integrated with the ERP system. This is causing the ERP vendors to acquire or develop a PDM capability. ERP vendors doing this include SAP America, Baan and J.D. Edwards, the first two of which are European headquartered companies. Other ERP vendors that may be working on a PDM capability include PeopleSoft, Oracle Manufacturing, SSA, Glovia, QAD and many more smaller suppliers.

What functions do ERP systems perform that EDM and PDM systems lack? ERP systems are made up of tightly integrated modules that can be implemented in any combined configuration of organizational functions: sales order entry, availability of inventory, production and equipment scheduling (including overseas facilities if applicable), purchasing (materials acquisition or reordering), human resources, quality control, shipping, etc. Depending on the size and kind of operation, these modules can be configured to any organization. PDM systems can supply the engineering drawings and specifications to manufacture the products. EDM systems can supply all of the documents that already exist within an organization to augment the ERP databases. It all sounds simple but these system are trying to automate the critical processes of complex business operations and the associated costs are immense. We intend to provide insight to the impact on EDM and PDM by the ERP systems in future issues. Until next time...


* See our related Cover Story on page 12 which describes the need for customized instruction manuals (documents) to meet the need for customized products.