IEM-platform based managing systems vs in-house developed systems and mass-produced ERP-systems

IEM-platform based managing systems vs in-house developed systems and mass-produced ERP-systems
A perfect mixture of all the advantages of mass-produced ERP and in-house developed systems. No demerits at all.

"There is nothing more practical than a good theory."

(C)Everybody

Could you possibly give names of the modern operational leaders and market leaders working on mass-produced ERP-systems?

Maybe it is

Walmart?

or AliBaba?

or Amazon?

or PayPal?

or eBay?

NONE. They all use in-house developed systems.

Moreover, any attempt to move from a successful in-house one to a "miracle" ERP-system results in an operational disaster. 

A question suggests itself — why the annual revenues for ERP market reach billions of dollars?

Why not to develop in house, once success stories of Walmart and etc are so bright and in all papers?

The thing is success stories are scarce (how many can you recall?).

Sadly the probability of failure is somewhat 99%.

A 1% percent chance of sounds encouraging and according to a law of large numbers, amid thousands of no-name daredevils a good dozen will manage to win.

Front pages of Forbes and Businessweek will help us to identify them.

Oops, they are already there — Walmart and Amazon and so on.

The rest 99% are known to insiders and a few professionals.

Besides a 1% chance of succeeding there is another important thing worth mentioning — money. The cost of the in-house development is quite high, let alone the time it will take.
IEM systems, designed as an exact opposite of ERP, on one hand

  • provide all the advantages of the in-house development whereas on the other hand

  • contrasting to mass-produced ERP-systems let alone in-house ones offer a by far lower price and the implementation speed massively higher  with failure risks tending to zero

To put it another way, any company can use and benefit from what used to be available for big players only, but ten times or even more as fast and cheap.

November 16, 2016 by John Galt