Collaborative ERP software-plus architecture emerges

The age of fast, efficient, lower cost collaborative business operations, driven by equally collaborative software components, is upon us (again) if we’re to believe high flying enterprise software vendor Scala Business Solutions. Last week the firm launched its iScala 2.1 as an ERP package with much the same functionality as its earlier Series 5.1, but founded totally on an XML communications-based Global Commerce Server technology. What it means is a route back to the mix and match ‘best of breed’ large scale software components architecture proposed for all systems several years ago, and somewhat abandoned in the face of upgrade and maintenance difficulties – but with those apparently overcome by the isolating features of XML. By relying on standard web technologies messaging between ‘modules’, you can phase development as and when, the argument goes. And clearly, there is a great deal of flexibility driven by what is a low cost infrastructure base. Scala has the temerity to brand it as the “world’s first purpose-built collaborative ERP platform … ready to fundamentally change business processes with genuine online collaboration.” It’s not quite that; indeed many will see it more a case of ‘catch-up’. But the fact that all component functionality, both ‘internal’ and to ‘external’ third party software, is handled by XML is a useful departure. Probably most interesting for users is that the firm’s VARs in their specialist industries will be better able to add future-proof functionality beyond the ERP shell, aided by Scala’s technology toolset. In fact, Scala seems to be using it as something of an excuse not to go the ERP extensions route, so favoured by most of its competitors, precisely because there’s little point. If you want to bolt on APS (advanced planning and scheduling), for example, then just do it! Kirsi Lopperi, business systems manager at load handling equipment manufacturer Partek Cargotec, says of his Scala system: “We will definitely gain from being able to connect the sales force with production. The factories will instantly know what is being sold and can adjust the production schedule accordingly. That way there will be less redundant time in the factories, which will be able to see what parts they need to order based on what is being bought and therefore work to a just-in-time delivery philosophy.” Scala is currently the second top performing share on the Amsterdam stock exchange, with revenues static for 2001 and 2000 around $71 million, but profitability radically improved from $36.6 million loss in 2000 to £4 million profit last year. Secrets of its success are its restructuring (it halved the workforce during 2000) and its move to drastically reduce direct consulting and focus on license sales. And hence its development path geared very much towards its alliance partners and VARs.