Our team at K2B has professionally supported processes of selection, implementation, and sustainable evolution of systems that improve the efficiency of recording economic operations within organizations. While choosing them, organizations must fully comprehend how to move forward with the process.
The implementation of an ERP system is usually a lengthy and difficult process involving high risk. This is primarily because the concepts of complexity, size, high costs, and a substantial development team, as well as the investment of time and resources, must be thoroughly considered.
The world evolves and transforms. It’s the same with how we do business. Reality demands us to be efficient and precise in order to be increasingly competitive. People make decisions and lead changes, but technology is a great ally. We work for the corporate world.
We put technology and a committed team at your service to make your business grow. K2B is launching this series of talks as a contribution to the community so you can dive into the world of ERP and learn first-hand what to consider when choosing a system for your company. If you are about to start the process of selecting an ERP or looking to change the system of your organization, this program is for you.
A little bit of history
With more than three decades dedicated to the business of enterprise solutions, we have professionally supported processes of selection, implementation, and sustainable evolution of systems that improve the efficiency of recording economic operations within organizations. We understand that, while choosing them, organizations must fully comprehend how to move forward with the process.
In the 1990s Gartner coined the term “enterprise resource planning” (ERP) to describe an emerging class of integrated software suite. This suite would include applications
to address Finance, Human Resources, CRM and MRPs.
Shortly after 2000, ERPs began losing their reputation as a result of high prices coupled with inflexibility and failed implementation processes. We find that today many companies are:
- Replacing some functionalities with robust applications in the Cloud (cloud deployment) that integrate with the ERP.
- Using multiple ERPs for different subsidiaries depending on the quality of local support.
- Giving up the use of ERP altogether by targeting only best-of-breed applications.
“The ultimate goal of a postmodern ERP strategy is to identify the best applications available in each particular business function, and then ensure they can integrate well with one another where needed. These systems may be hosted either on-premise or in the cloud, depending on what is required” Source: Gartner
It is now the second decade of the century, and, with the evolution of technology and business models, the role of these types of systems is slowly shifting its focus away from «the enterprise». It is evolving, and as such, so is the terminology used to describe it. Forrester proposes looking beyond ERP. He recommends adopting Digital Operations Platforms (DOP), as many digital initiatives are failing due to isolated ERP solutions, legacy operating systems and uncoupled processes. There is a need for a bold digital approach that leverages a low-code platform to achieve scalability and real organizational success.
In his view, Gartner now proposes Enterprise Business Capabilities (EBC) and identifies a 4th era that expands and better serves the needs of the business and its customers. In 2023,
40% of large enterprises will shift towards EBC strategies from traditional ERP vendors, according to him.
In the past, ERP systems had a very specific purpose: to provide integrated internal processing. Today, EBC is expected to achieve another goal: meeting customer expectations to deliver a seamless customer experience (CX).
Customers have adapted to quick service, simple online ordering and near-instant shipping, and 24-hour access to their account details and purchasing options. This includes B2B customers.
These days, no matter who your consumer is, if you don’t provide the best CX, somebody else will. That’s why leaders must shift the focus from operational efficiency to CX efficiency.
ERP will play a role in this experience, but it will only be a small one; however, a system that cannot integrate and adapt quickly to the rest of the components and processes will harm your business. Accordingly, the most critical features to consider when selecting a solution for your organization are agility and adaptability.
About the selection process
Keeping in mind the historical references and emblematic features that organizations should expect from their suppliers when deciding to implement an ERP, and in the spirit of providing methodological references, we share the vision of a consulting firm with solid expertise in the subject so that we can combine both strategic and operational visions during ERP system selection.
Others news you might be interested in
