The story is all too familiar. After an expensive and arduous implementation your company’s ERP system is still not bringing in the promised benefits such a costly solution should provide.
The issues can be many, but there are, of course, some usual suspects: continuously increasing costs to implement and maintain the system, and an inability to adopt minor changes. On top of that, many ERP projects reach a point of ‘no return’, where downsizing and going back to former systems can be even more costly and frustrating than pushing through the pain with your current ERP solution.
That’s why Excel in the cloud and the value of a hybrid ERP approach can be a much needed prescription to the pain. In fact, Gartner estimates that over the next few years, at least a third of organizations will move most of their ERP applications to the cloud:
“Early ERP adopters, particularly large enterprises in energy, manufacturing and distribution industries, are paying the penalty of a decade or more of excessive customization. Businesses looking to improve administration today can take advantage of lower costs, better functional fit and process flexibility offered by blending cloud applications with on-premises applications in what we now refer to as ‘postmodern ERP.”
That’s not to say that legacy ERP systems are bound to die—instead they are undergoing an exciting evolution. The old-school concept of a solitary suite that meets all of the organization’s needs does no longer applies, and has been replaced by a hybrid ERP approach, combining niche cloud solutions with smaller on-premise ERP modules.
“Longer term, over the next 10 years and more, we envision a scenario where more of the market ‘flips’ to the cloud. Instead of having on-premises core solutions that are complemented by innovation or differentiating processes being supported in the cloud, some organizations will move all their ERP functionality to the cloud,” said Nigel Rayner, research vice president at Gartner, in a press release.
What makes this evolution all the more exciting is the newly found power that the CFO has found in the cloud, giving business leaders the greater influence, technology ownership and flexibility they’ve long demanded. Applications in the cloud, as PWC reports, “offer significantly lower barriers to entry in terms of time and cost, allowing functional teams to pilot and implement function-specific applications — in some cases, without any help from the IT department at all.”
Linking cloud-based applications to legacy ERP systems is truly the best of both worlds, giving the CFO and his team much needed and long awaited ability to generate business value from their ERP systems.
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