“Successful execution of a postmodern ERP strategy requires a life cycle approach that extends far beyond the initial implementation to a whole series of follow-on projects.”
Gartner Research Director
TERM COINED BY GARTNER IN 2014
Postmodern ERP is “a technology strategy that automates and links administrative and operational business capabilities (such as finance, HR, purchasing, manufacturing and distribution) with appropriate levels of integration that balance the benefits of vendor-delivered integration against business flexibility and agility.”
WHAT'S WRONG WITH THE MEGASUITES
► Monolithic, adj. large, powerful, indivisible, & slow to change
Too cumbersome & expensive to modernize (1990’s technology)
► Considered by many as a necessary evil that rarely delivers value
► Require high spending levels to maintain
► Lack of agility & flexibility to support digital business
► Customers isolated from the developers by ‘Partners’ who thrive on pushing customizations
► Too many ‘horror stories’, $billions wasted.
► The ERP strategies of product-centric versus service-centric organizations are diverging
► By 2020, the number of organizations adopting a governed, business-led postmodern ERP strategy will rise from approximately 15% today to over 40%
► PaaS will play a strategic role in postmodern ERP deployments by 2021
► Most midsize and larger enterprises require external competency from new vendors to extend the ERP suite to meet differentiating & innovative business requirements
► Advanced Analytics will be embedded in ERP applications
► The relationships that organizations have with their technology providers in postmodern ERP are moving from one of client/vendor to business partner
► Will the SAP, Oracle, Microsoft suites disappear?
RECOMMENDATIONS TO CIO’s
► Develop a postmodern ERP strategy that focuses on the parts of the ERP core required to support & add value to your digital business strategy and platform.
► Build a bimodal governance model that adapts accordingly across systems of record, differentiation and innovation.
► Investigate beyond traditional ERP vendors — especially for differentiated and innovative capabilities.
► Those who do not create a postmodern ERP strategy & environment will find themselves at a competitive disadvantage at best, & obsolete at worst.
► Transform yourself & your team from being the procurer, provider & integrator of technologies to being the enabler of business outcomes.
POSTMODERN ERP LIFE CYCLE