-Like Software Gains Financials Beta">Workday, with the beta release Aug. 20 of applications like payables, receivables and general ledger, now offers a more complete suite of ERP-like software that includes Human Capital Management and core finance and accounting software. Workday, pitched as the "un-ERP" (enterprise resource planning) company that produces ERP-related software, in its latest financial software release has added Web 2.0 tools like tagging to deliver information based on users and events. Started in March 2005 by PeopleSoft co-founder Dave Duffield, Workday says it expects its approach to ERP software developmentmodel-based development that includes the newer Web 2.0 featuresto differentiate it from the groundswell of on-demand software coming or on the market now. Industry analysts say its too soon to tell, but from the looks of it, Workday could be on to something.Click here to read more about Workdays launch and strategy. At the same time, by adding functions like business intelligence and GRC (governance, risk and compliance) features natively, it gives users the ability to avoid using data warehousing to pull data out of the system, because it is, theoretically, smart enough to know up front in what ways a salesperson, or a budgeting person or the CEO, needs to know information. "Were offering something quite different than ERPits the first system really built for the modern era," said Mark Nittler, vice president of Applications at Workday, based in Walnut Creek, Calif. "Little things like the Internet, like Sarbanes-Oxley, have significantly impacted business and changed business. Except ERP. We are the first company since the world became flat." According to Nittler, where Workday differs from other ERP companies is their focus on accounting, an approach that omits information about economic events. What Workday wants to do, he said, is redefine the way corporate finances are handled by starting with a set of processes that define much more of what a chief financial officer is interested in, going beyond accounting and quarterly reporting to areas like resource management and revenue management. Workday says its assumptions are that business is about commerce and the whole businessnot just the accounting departmentwants good information about the business. "We want to support employees on the perimeter of the organizationnot just the ones that close the books," Nittler said. "The real data is what happens in a business event. Its defining who, what, where, when and why. This is the place where we really break tradition with ERP and change completely the way we identify information in the system." "Workday talks about definitional services [with which] you can define what you want the software to do using a Visio-like tool," said AMR Research analyst Bruce Richardson. "Its brand-new, so it looks like the right idea." While Workday has announced the beta of its financial applications, the real story, according to Richardson, is the platform that forms the underpinnings of all Workdays applications. "The financials applications are built on an event-driven object management system that manages and deploys worktags to ensure optimal reuse of financial and other data based on the data consumer: CFO versus marketing, internal customer versus reseller, and so on," Richardson wrote in an Aug. 17 research note. "The worktags could be by account, campaign, channel, cost center, company, customer, department, facility, group, industry, product, program, project, region, supplier, supervisor, territory or the link. Its a very clever idea that is linked into the model-based software design." But there is plenty of competition looming on the horizon. While there arent a lot of on-demand ERP contenders aside from NetSuite, SAP is set to release its "A1S" suite Sept. 19, software that is reportedly on-demand and model-driven. Microsoft will release its multitenant CRM (customer relationship management) software later in 2007. While its CRM is not a full ERP suite (yet), Microsoft has been dabbling with role-based development and could turn an eye to on-demand financials and HCM. Page 2: Workdays ERP-Like Software Gains Financials Beta
Workdays development strategy is based on the idea that by modeling software based on three areasresources, people and eventsrather than credits and journals as found in traditional ERP, the company will be able to provide a different user experience.