Enterprise Resource Planning has been around for decades, starting as Materials Requirements Planning (MRP) and transitioning to today’s familiar ERP. But as the technology has slowly improved over those many, many years, two things have become crystal clear: companies are realizing great value from the concept of ERP and it’s about time for an updated approach.
To help companies plan an ERP modernization, Gartner just released their “2019 Strategic Roadmap for Postmodern ERP” and you can get your free copy here. In the report, the research firm looks at how companies are rethinking their approach to technology as more of a means to an end. Progressive companies are moving from simply “what technology do we need” to “what outcomes, results, and goals do we want to achieve”. From there, they then choose the technologies that will help them achieve those outcomes.
Download Gartner’s 2019 Strategic Roadmap for Postmodern ERP to learn more.
So what are the benefits of shifting to an outcome-based approach? Gartner says those who take a business-strategy-first approach will deliver 60% increased business value over those who take a vendor-first approach. The takeaway is to throw out your preconceived notions about which brand is best or which vendor has the most customers. Instead, look at your desired outcomes and determine which solutions will best help you achieve those goals.
Gartner also found more reasons to update and modernize your ERP: organizations that continuously improve their cloud-based ERP will realize 60% more business value simply by adopting the latest best practices vendor’s provide via frequent SaaS releases. The critical piece of that statement is SaaS, which enables you to quickly take advantage of frequent updates and advancements rather than undergoing massive business disruptions for infrequent upgrades to older technologies.
So how can organizations take advantage of postmodern ERP? Changing your approach, outlook, and expectations is the first step, according to Gartner. The firm found that many companies are still stuck in their thinking that the popular (i.e. largest) vendors are the best place to start. That “technology-first” thinking not only puts desired outcomes on the back burner, it keeps you from considering newer, more nimble, and more modern ERP vendors.
Gartner also points to the changing nature of business as a driver for ERP modernization. As the lines between business and IT continue to blur, and massive IT infrastructures become relics of the past, technology that’s easier to deploy and manage is becoming more attractive. That means cloud-based solutions. When you put it all together, the relative ease of implementation, maintenance, and upgrades of cloud-based ERP becomes even more attractive.
Download this Gartner report today to read all of their key findings and recommendations, and see their detailed roadmap for postmodern ERP.