Lack of agility is transforming how enterprises use ERP systems

A new report suggests that there is going to be a "shake up" in the Enterprise Resource Planning market

Lack of agility is transforming how enterprises use ERP systems

Today, more enterprises are implementing new technologies as part of their overarching business transformations. However, a new report from Third Stage Consulting indicates that a lack of agility is delaying this digital shift.

A “shake up” for ERP

According to the report, there is going to be a “shake up” in Enterprise Resource Planning (ERP) systems. As professionals seek to manage their business rather than their ERP platform, the most popular ERP software could experience a decline.

Overall, companies that completely outsourced their deployments to an ERP system integrator, VAR, or reseller were more likely to experience challenges. On the other hand, those that took more active ownership of their transformations experienced less difficulties.

As a result, companies are more likely to use most approachable tool, such as those offered by Salesforce or Workday. Although many enterprises traditionally perceive these systems as CRM platforms, these tools delivered better business value on average.

Traditional ERP will become obsolete

Traditional ERP and human capital management (HCM) implementations will also become increasingly obsolete. While the report ranks the top ERP and HCM systems, it also predicts that it is the end of ERP as we know it.

“Implementing ERP like it’s 1999 didn’t work then – and it’s definitely not working now,” the report claims. In 2019, however, more companies will find success by broadening their overall view of enterprise technology.

Traditionally, the report states that companies view ERP and HCM as a way to automate back-office functions or inefficient business processes. However, it added that more innovative organisations “will find success by breaking with the status quo.”

Digital transformation failures increase

This year, cloud ERP will also reach a “tipping point” in terms of adoption rates. Apparently, software vendors and the entire ERP ecosystem are investing far too much in their flagship cloud products.

While most digital transformation predictions tend to be optimistic, the report insists that some trends could bring challenges. There are a “number of reasons” why digital transformation failures are on the rise.

For example, customers are being forced off of their legacy on-premise systems while vendors teams are “focusing too much” on technology. Moreover, the company’s ERP expert witness practice has seen a marked increase in demand.

As a result, it is likely that 2019 will see more ERP failures. However, organisations will hold their ERP system integrators accountable for their results by leveraging effective (and independent) third parties.

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