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POSTMODERN ERP

“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.” 

Denise Ganly
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.
 
 
 
KEY FINDINGS
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