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by jl6 598 days ago
> It is set to re-implement an "out of the box" version of the solution after customizations in the first effort disrupted its bank reconciliation system.

Root cause.

When you buy from an ERP vendor, you are not just buying software, you are buying a logical model of an idealized corporation. If that model doesn't reflect your actual organization, you can try to customize the software, but beyond some threshold of mismatch, it's easier to change your accounting & control & governance processes to match the software.

SAP and Oracle are no different in this respect.

4 comments

Also this goes beyond just ERP - core banking packages like Temenos or Avaloq are the same. They have something called 'model bank' which is some default simple model of common expected behaviors, workflows etc.

But almost none of the banks actually work like that, apart form some small insignificant shops which can't afford such customization. Each has some unique stuff that makes it better than most competition in that area. Behemoths of banking world run their pretty unique things, workflows, specific jurisdiction reporting etc. so each of them have more or less massive customization on top of basic common stuff.

I guess it goes without saying almost constant flow of changes, either from business or regulators keeps hefty IT teams busy to maintain that customization and ensure things keep working. Also logically the complexity has only one direction to go, and so it goes, slowly but surely.

I am not even sure if business properly realizes all this, maybe they do or maybe they are kept in continuous cloud of bullshit from IT managers who of course want to preserve their jobs and importance (headcount, impact) within corporation. Anyway the prospect of migration to something else is something they (rightly) detest and want to avoid if possible, since costs and duration are massive, potential issues tremendous and backbreaking, and there is absolutely no guarantee of success.

> I am not even sure if business properly realizes all this

It definitely doesn't, as in the top directors likely don't. It is likely that they brought in some kind of consultant who sold them this solution to the higher ups against the protests of the lower managers

Tax agencies might be the way to hammer this into organizations. If they demanded specific sorts of data for specific activities for audits everything else would quickly evolve to support that.
Seen a few projects which are equivalent to a tenant cutting off structural columns in a high/mid rise to install safes. Are people going to be punished for demanding impossible customizations or attempting them, or rewarded for "keeping the integrity" like magicalhippo and their client did, as mentioned in their comment?
Real question is why does it need customising… every council is going to have supply chain, payroll, asset management etc
You are right, but everyone feels they are the one special exception. And unfortunately the public sector are especially rigid in sticking to their 40 year old processes, garnished with an organization-wide god complex that they are holding the world together with it

I managed a whole 8 months in a local government role (not UK) before jumping ship when I realized how futile trying to improve anything was