If you don’t create a plan on how to integrate your applications into business, your business will end up chaos, with prices and complexity going sky-high.
Those are the results of the latest report by analysts Gartner, on the increasing complexity of the enterprise resource planning (ERP) application portfolio.
Gartner’s predictions are somewhat grim – 90 per cent of organisations will lack the postmodern application integration strategy by 2018, which will lead to ‘integration disorder, greater complexity and cost’.
"Postmodern ERP represents a fundamental shift away from a single vendor mega suite toward a more loosely coupled and federated ERP environment," said Carol Hardcastle, research vice president at Gartner. "This new environment promises more business agility, but only if the increased complexity is recognised and addressed."
Building a postmodern app strategy is no easy task, Gartner continues. The hybrid systems, in which many businesses operate today, are leading to greater complexities in the app portfolio, which might lead to an increased risk in failure. But the biggest risk is that businesses expect vendors to take care of this strategy, which they won’t.
"The poor practices of the past and the associated excuses for suboptimal business outcomes won't hold water any longer. The focus of postmodern ERP is on improved business agility and flexibility — for example, through deployment of solutions and services that are better targeted at the business capabilities and address other needs such as user experience," said Ms Hardcastle.
"It really is time that the significant investments businesses make in ERP solutions reap real benefits. ERP vendors and SIs must raise their game on implementation approaches, renovating and revisiting their own implementation methodologies for speed and with greater emphasis on the benefits realisation activities."
Gartner’s full report, entitled "Predicts 2016: Postmodern ERP Sets Great Expectations but Poses Many Challenges,” can be found on this link.