Predictions for Reinventing ERP in the Coming Years

Reinventing the monolithic ERP system is not going to happen overnight, but it is happening. What if you could predict what ERP changes would happen in 2016 or 2017?

Having a crystal ball to take a look into the future is possible with independent research from Gartner. Their research – Predicts 2013: Reinventing the Roles of ERP and Application Suites– takes a look at disruptive forces on the ERP system as a whole.

Take a look at some of the key findings:

“By 2016, over 70% of companies will utilize ERP applications embedded with social networking technology.*”

“By 2016, the devolution of monolithic ERP will result in at least 30% of ERP implementations being deployed in a federated manner.*”

“By 2016, at least 50% of organizations will deploy their ERP applications to users via a post-PC environment.*”

“By 2017, in-memory-based ERP applications will become the default expectation of Global 2000 organizations.*”

CIOs and application leaders need to be aware of these changes and their implications to strategic planning. We want our clients to have access to the most appropriate, best-in-breed solutions for their business concerns. We seek to help you, in the midst of the shifts above, find a balance between implementing a system quickly for the wrong reasons versus a too-slow, monolithic approach that misses opportunities.

Gartner’s research includes recommendations. Some may be of use to your company as you balance strategic planning with immediate application demands. We include our take on each recommendation:

Recommendation 1

Use a Pace-Layered Application Strategy, which is something Gartner established in 2010, to determine your ERP footprint, because one size no longer fits all. This also means balancing the IT strategy with the pressing needs of another department. While ERP strategy should not be only an IT function, those technical roles can help guide the decision making process.

Recommendation 2

Build a long-term total cost of ownership (TCO) model to compare the overall costs of software as a service (SaaS) versus other options, and don’t get overexcited by promises of easy implementation and low maintenance. We really like this recommendation as it means taking a step back and carefully evaluating your businesses current and future needs. Just because an ERP platform appears to have all the functionality you need, you still need to make sure. Work with a company that will help you with the software selection process. Make sure the ERP system will truly improve your company.

Recommendation 3

Evolve your mobile strategies toward the post-PC environment. Google recently changed its advertising rates on mobile, reflecting this growing trend of tablet and mobile usage. Take a look at what this means for you when determining the functionality of your ERP system. How easy is it for customers to reach you via mobile devices? How easy is it for your sales and field service to access critical ERP data on the road?

Recommendation 4

Understand the immediate and longer-term opportunities of in-memory computing on business applications and processes. Forbes published an article in May 2013 touting how in bound memory computing changes everything. Their calculations indicated that if you redesigned a data center with memory-based storage systems, you could store 40 times as much data in the same finite space. This will unlock big data capabilities on a new level.

What’s your take? Are you sold on mobile ERP? Will in-memory computing revolutionize data storage? What are your predictions for 2014 and beyond? Let us know!

Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.