ERP Today: Challenge, Opportunity, or Both?

Blog /ERP-Today-Challenge-Opportunity-or-Both

The age-old IT truism “stabilize the core, innovate at the edge” no longer applies. The pressure to transform into a truly digital business demands a thorough reassessment of all core business applications and established architectural practices.

To help our customers better understand and navigate today’s dynamic ERP waters, and to help us better meet our customers’ third-party service needs, NTT DATA recently enlisted IDG to conduct a survey of IT and business leaders.

Here’s a selection of survey-result highlights:

Top 5 ERP investment drivers

ERP investment decisions are frequently driven by the need for better reporting (57%), better decision making (49%), and to increase the speed and agility of business processes (46%). Rounding out the top five ERP investment drivers is cost optimization (44%) and integrated process platform/streamline processes (43%).

ERP complexity reigns

Complexity permeates today’s ERP landscapes with more than 73% of respondents agreeing that their ERP ecosystems have become more complex over the past 2 years.

Complexity drivers include:

  • Multiple ERP platforms – 33% report an increase in the number of ERP platforms/packages in use at their organizations over the past two years; 61% are using a core platform plus one or more additional platforms.
  • Expanding ERP scope  – 32% added ERP functionality in past 2 years; 18% plan to add ERP functionality within 2 years; One in five organizations will move or deploy customer relationship management and/or data services (“self-service” interfaces) to a secondary ERP platform in the next 12 months.
  • Increasing hybrid [on-premise + cloud-based] ERP deployments – 44% have a strategy in place for integrating on-premise and cloud environments, while 36% report this is a priority over the next 12 months.

Top 5 ERP challenges

Cost/budget is the top ERP challenge (52%), followed closely by integration challenges (for both applications (49%) and business processes (46%). Change management comes in fourth (39%) and finding solutions that meet specific needs ranks fifth (39%).

ERP strategy is lacking

Less than one-half of respondents’ organizations have an enterprise ERP strategy that governs ERP deployments today. However, 32% cite this as a future priority.

Top 5 criteria for choosing an ERP partner

The need to tightly link different ERP elements and run business processes across them has companies searching for ERP integration and deployment partners that can deliver a range of skills and expertise.

Here are the top five capabilities survey respondents rank as critical or very important:

  • Integration expertise (85%)
  • Specific business process expertise (80%)
  • Cost competitiveness (72%)
  • Industry/vertical expertise (57%)
  • Project/program management expertise (56%)

For complete survey results, and to download “Tackling ERP Complexity” white paper, visit NTT DATA.

Post Date: 10/9/2015

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