Around the year 1990, Gartner coined the term Enterprise Resource Planning to represent the new breed of the integrated software suite. These new kinds of suite providers enjoyed the success and glory for good two decades. However, things started turning sour when prices were not justifying the benefits and relative inflexibility of the suite was becoming the reason for ERP implementation failure.
In 2014, the same Gartner came up with the term ‘post-modern ERP’. The organization that thought of rebranding the term in light of changing market dynamics in itself should be enough for enterprises to rethink about their ERP strategy. Post-modern ERP is nicely defined by Thomas Spol in his article in CIO Review. He states that – in the postmodern ERP world, the legacy ERP suite is deconstructed into a more [loose] set of integrated business functions. The pieces make up the whole, rather than the whole (or suite) comprising the pieces.
How do enterprises know that it is the time for them to migrate to new ERP? Here is the list of questions. If the answer to any of them is yes, then it is time for the enterprises to consider migrating to post-modern ERP.
- Do you have single vendor and technology stack?
- Are you getting regular escalations related to usability issues?
- Is your IT team taking longer than expected to react to business changes?
- Are your business teams using SaaS solutions as ERP is not able to accommodate their needs?
Post-modern ERP brings in various benefits to the enterprises. It allows using best-suited application for a particular function. In certain situations, it allows replacing only a specific application leaving other parts of the system intact. Similarly, only a certain part of the system can be upgraded without impacting other applications. However, the success of post-modern ERP relies heavily on the successful integration of the application. If the enterprise is using a core ERP then peripheral applications need to be integrated seamlessly with this core ERP.
Let me know your views in the comment section. In the following blog, I will talk about detailed differences between legacy and post-modern ERP.