Sunday, August 19, 2007

ERP Vs Family Patriarch

The article doesn’t intent to explain the technology part of ERP, but the significance.

Irrespective of the country or environment, we have all seen the traditional businesses being run, since our childhood.

In a traditional business normally a family is involved. And one of the family members assumes the position of the Patriarch.

Role & Importance of Patriarch

Patriarch is central to the whole business. He is the person, who has final say on every issue. All people, whether a production guy, HR guy, IT guy, Finance guy reports to him. They give reports on issues ranging from minute to critical. He is informed about working capital issues, bad suppliers, bad customers, defaulting employees, competitive landscape and so on.
With this continuous input of information, patriarch becomes most informed and most important person to the whole business.

In other terms, he becomes Datawarehouse of the business. And equipped with this information, when there is any info, advice or decision is required by any stakeholder of the business, patriarch( normally a wise person) applies his Datamining skills on the datawarehouse, and comes out with logical info, advice or decision.

ERP as Patriarch

Now in ERP, the patriarch is replaced by a combination of application softwares, hardware and procedures.

And this creates an Artificially Intelligent System known as ERP.


Virinder Urf Funda-Mentor said...

I like the way u r thinking. But saying that ERP is artificial intelligence wud be stretching it.If that wud be the case, humans as managers would be made redundant. Maybe its the way to the future but as of now its more like a tool for decision making.

Prabal Aggarwal said...

Yes, artificial intelligence with limitations. See, even an animal like pig is intelligent but to an extent. Similary, the ERP is Artificial Intelligent System, but to an extent only.And who doesnt want the intelligent managers? But, nobody likes to them to be over intelligent.

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