Focus on Digital Operations Platform (DOP) – why even the old ERP should be questioned
In the first two parts of the mini-series “The New Retail Omnichannel Commerce”, we discussed the new omnichannel requirements and examined which approaches can be used to address these requirements.
This last part is about the previously teased scenario 4, in which, for example, an “omnichannel retail all-in-one solution with strong OMS and ERP” could replace large parts of the entire system landscape.
Under the term Digital Operations Platform (DOP), co-coined by Forrester, and driven by trends such as unified commerce, there are a large number of systems that claim a huge range of functions.
Below, we present our meta-definition in terms of scope, framework, and system categories.
A Digital Operations Platform (DOP) potentially covers the following parts:
- Solution for eCommerce – the online shop for customers
- Solution for POS – for customers in the consultation situation and for pickup including integrated POS solution
- Order Management Solution with the Requirements Described in Part 1
- Strong central workflow solution for comprehensive automation
- Strong central data & analytics layer for master data and transaction data, which can be accessed from all processes, coupled with an analysis solution for checking behavior, quality, etc.
- Complete Enterprise Resource Planning (ERP) functionalities for companies in industry and trade as well as in the pure service sector
- Solution for merchandise management and logistics
- Complete Customer Relationship Management (CRM) functionalities for marketing, sales and service
- Product Information Management (PIM) and Digital Asset Management (DAM) Solution
- Integration of marketplaces and other channels
- Integration of backend peripheral systems – existing, established systems can be completely retained and integrated, which is also necessary for the gradual replacement of e.g. the existing ERP with a DOP
From 2022, there are two Forrester Waves on the topic: “DOP for Manufacturing and Distribution” and “DOP for Services“.
As is so often the case with US-focused analyst opinions, many of the systems mentioned there have little relevance for the European market with a focus on DACH and are already failing because there are no corresponding implementation partners.
Unfortunately, you will also look in vain for exciting industry approaches such as “retail all-in-one solution” or Europe-focused products, which is why your own further research is unavoidable.
There are various providers who cover the above parts more or less well. Nevertheless, you can’t get rid of the general feeling: “Such a jack-of-all-trades can certainly do everything a little, but nothing right!” And in principle, you’re probably not even wrong – there can be no ultimate solution.
But the question that our customers are increasingly asking remains: Can this approach make a difference in my system landscape and if so, how?
The question can definitely not be answered generically, but depends a lot on the situation and the requirements. Which brings us to the middle of an evaluation project that we love so much.
Again with a view to the graphic above: A combination of the following most important framework conditions for the inclusion of DOPs in an evaluation must be present:
- The level of suffering, especially in the area of ERP, is very strong
- The current ERP is end-of-life and a new solution is fundamentally needed.
- The migration to the cloud version of the current ERP is simply infinitely expensive and initially without added value.
- There is a lot going on with regard to the Workflow & Automation and Data & Analytics layers, especially with regard to the integration of peripheral systems
- It is not possible to orchestrate the company’s business processes across the board, based on corresponding data.
- It is not possible to consistently focus on the customer and his processes (customer centricity ).
- There is the will that the processes will not be adopted exactly the same – rather, they should be reconsidered in advance and incorporated into the evaluation process
- Internal IT must be able to imagine a changed, comprehensive and more flexible deployment scenario
- Several solutions of the IST architectural landscape are not set in stone and are at least up for discussion.
- Note: For a pure 1:1 replacement of the existing ERP, it is better to look for a suitable, lean cloud ERP.
If several of the conditions mentioned apply, the next look turns to the providers, who cavort in a very confusing field. We assign the providers to one of the following categories:
- Best-of-breed under one product name
- Many components were strategically purchased under one company roof, which are now marketed under one product name.
- Which parts come from which company purchase can be found out with a lot of historical research and, depending on the time and order of the acquisitions, you can see the core of the solution.
- According to the manufacturer, a clean integration of the individual parts has been implemented. However, experience shows that although this is not ruled out, it is rarely the case.
- Platform Approach
- The platform, which has mostly developed from one direction such as CRM, offers many provider-specific modules.
- Third-party providers are enabled to develop their own modules. This means that a large number of broad functionalities and integrations are available.
- The range of functions and quality of the provider’s own modules, but especially those of the third-party providers, is difficult to assess in terms of quality and future viability.
- Complete solution
- The complete solution was developed for an industry and with a focus on SMEs and is now also suitable for larger companies with its range of functions and scalability.
- An integration of individual components is not necessary. It is actually a single solution that is modular according to modern architectural principles.
- The mostly generic approaches in the structure of the modules and in interaction with the workflows can have disadvantages in usability
- ERP Industry Essay
- For almost all large, well-known ERPs, complete industry approaches have been developed by third-party manufacturers, which come up with a large ecosystem of business solutions.
- The industry essay expands the ERP all along the line and promises very lean projects, as processes, data and interfaces are already designed for the industry.
- The final completion of the ERP and industry essay by applications from the implementation service providers promises very broad and deep coverage on paper plus a lot of flexibility at the same time. A combination that can lead to worry lines later in operation and further development.
Summary and conclusion – what can you take away from this final part of the mini-series:
- We are convinced that modern approaches such as DOP can lead to more agility and flexibility in an encrusted environment with ERP components .
- However, it is a very long way for companies to get involved with one of the systems in the first place. However, if the framework conditions mentioned above are met, it is worthwhile to broaden your horizons and “question the old ERP from time to time”.
- In contrast to a rather narrowly defined evaluation of e.g. eCommerce solutions for B2B or B2C, the topic of omnichannel management systems with the consideration of ERP components has a scope for which upstream architecture consulting is highly recommended. Only after restriction to the appropriate scenario can an evaluation of the appropriate solution be carried out in a second step.
We would be happy to work with you to find the right application scenario with the optimal solution for your company situation.
We look forward to hearing from you!