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Post-modern ERP Challenges

Posted On: April 27, 2017

Topic: ERP Application Management

blog_confused.jpgConnecting with Key Internal Business Applications

Digital businesses want to turn on a dime. They strive to tightly integrate every facet of their organization to better support customers, make better data-driven decisions, continually build market share and drive revenue growth. Unfortunately, most ERP systems – the linchpin that drives product planning, development, manufacturing, human resources, finance, sales and marketing and other mission-critical functions – weren’t originally built for the digital business.

According to recent research from IDG, companies invest in ERP systems primarily to provide:

  • Better reporting (57%)
  • More accurate decision-making (49%)
  • Speedier business processes (46%)
  • Tight cost optimization (44%)
  • Streamlined, integrated processes (43%)

Few organizations making the move to digital business, however, reap those benefits. As they struggle to make their ERP implementations move along with them, the same survey finds they are instead challenged by:

  • Cost/budget concerns (52%)
  • Application integration (49%)
  • Business process integration (46%)
  • Change management/internal people issues (39%)
  • Finding solutions to meet specific needs (39%)

This is because most ERP systems today are locked in yesterday’s technology. More than two-thirds of organizations (69%) say their ERP system runs completely on-premises, while just 18% use the cloud – despite the fact that many of these same organizations are cloud-first for every other business initiative. What they need is an ERP platform that can grow with them, ensuring they reap the benefits of the cloud while maximizing investments in current on-premises technology. 

ERP systems based on hybrid cloud technology, what is often termed “post-modern ERP,” do just that. Hybrid cloud solutions integrate on-premises and cloud-based applications (private, public or managed), enabling businesses to protect/extend their IT investments while making the move to the cloud in a thoughtful, strategic way.

Getting the right post-modern ERP solution in place isn’t easy, however. It requires:

  • A clear roadmap: Deciding what to keep on-premises and what can safely move to the cloud, as well as where the biggest synergies lay, isn’t easy. IT must take the time to craft a strategic migration plan upfront.
  • ERP-cloud integration: A post-modern ERP solution is only as good as its integration with other mission-critical cloud apps. Without tight integration, most companies fail to fully streamline their operations and lose out on critical post-modern ERP benefits.
  • Smart use of disruptive technologies: Post-modern ERP isn’t simply lifting old-school ERP and placing parts of it in the cloud. Organizations must ensure their ERP platform leverages new digital business initiatives, including mobile, social and big data, to keep the business moving forward.
  • Tight communications: Post-modern ERP fosters communications between all employees, no matter where, when or with what device they work. It is built from the ground up with mobility in mind.
  • Strong business intelligence (BI) tools: Post-modern ERP can’t match the agility of digital business unless it is optimized with big data and other on-site and cloud analytics to foster true business insights.

The key to successful post-modern ERP is in tightly linking ERP with key internal business applications to digitally transform your business processes end-to-end. OneNeck IT Solutions is well-versed in hosting and managing post-modern ERP solutions. Whether you use Microsoft Dynamics AX, SAP, Oracle E-Business Suite or another major platform, we can ensure your post-modern ERP solution offers the flexibility and agility your digital business requires. Learn more.