In 2014, I wrote 7 Reasons Why ERP is Not Enough. My main point was that while Legacy ERP solutions bring many benefits to organizations, they generally do not provide the capabilities and value that an extended solution incorporating Business Intelligence (BI) and/or Corporate Performance Management (CPM) solutions brings.
Depicted visually, CPM and BI capabilities are add-on solutions to complement the Legacy ERP. Though due to the perception that functionality delivered within the Legacy ERP should be enough, many organizations are provided a limited set of supported BI and CPM capabilities. This practice has entrenched the use of shadow systems and the prevalence of management by Excel.
Enter the era of Postmodern ERP, a term coined by Gartner in 2014. It essentially puts an end to ERP mega-vendor’s claims that their integrated suites not only ‘do it all’, but also ‘do it all for everybody’. Instead, agility, innovation, and scalability are driving the way organizations source, implement and manage an integrated set of business functions. This drives the most value from operational business transactions to financial records, from any number of vendors.
Postmodern ERP offers a strategic view and approach to organizations beyond core administrative (financials, HR) and operational (SCM, manufacturing) functions. It includes areas such as CPM, BI and Advanced Analytics.
In fact, this is exactly how ERP can finally be enough! With the organization freed from the idea that the incumbent ERP solution can or should ‘do it all’, CIOs can focus on more innovate strategies to deliver the most value with suitable integrated solutions. At least this has been my experience for several years as I encountered many organizations whose planning, performance management, reporting, dashboards, analysis, data discovery and predictive analytics needs were not well met.
Depicted visually, critical Administrative and Operational ERP, CPM and BI business functions are seen together as an integrated whole.
If this blog has piqued your interest and you’d like to have a conversation, please contact your BDO Client Manager or simply contact me directly.
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