Risky business

I followed a spirited discussion on the user group forum hosted by our ERP vendor. Users were clamoring for development to embrace iPhone integration; which led to a general call for the vendor to broaden its scope beyond Windows client applications. ERP company representatives explained (ever so patiently) why they aren't going there, and why the users should see this reluctance as a good thing. With every posting by the software compay, you could see the frustration level rise amongst the users.  Since I've sat in both chairs, I know the frustration from each perspective. User: Why can't you offer more flexibility for my business needs? Vendor: Have you any idea how much this would cost? It has no quantifiable commercial value - how do I pay for this??

Ultimately, if the market eventually demands the new thing, the vendor will develop it -- but it will be a reactive strategy. In the 80s and early 90s, ERP companies could get away with that. The market accepted long lead times for development, and highly valued stability and risk avoidance. The market's in another place now, and users have much different expectations. They look to their technology vendors to bring the future to them. Sometimes (and only sometimes) the new new thing delivers perceivable value and it takes off like a rocket. But, the failure rate is high. 

Someone has to bear the risk, and maybe it's time for ERP vendors to think differently about the value their clients expect from them. Rethinking the relationship may lead to rethinking the contracts that underpin it, which fund development. Sometimes it' s possible to be safe and sorry.