Enterprise resource planning (ERP) Part 2: Planning the ERP strategy for modernisation
Conclusion: Reimagining the ERP strategy will require IT and business collaboration to ensure requirements are clear. Retaining the 5–10 year old ERP system1 may serve back office functions but this may impede innovation. ERP customisation is being replaced by vendors who deliver regular updates to their SaaS ERP model. This provides innovation which could reduce the need for complex business cases.
ERP vendors have signalled sunset on support for older ERP systems to challenge organisations to embrace modernisation in the next five years2. This seems far away but experience suggests laggards could see skills shortages and higher costs as the deadline approaches.
ROI measures successful ERP migrations but SaaS models will challenge this. Organisations will need to hold regular conversations to understand these competing parameters. Business leaders will question business requirements; however, innovation should not be ignored during the development of the new ERP strategy.
About The Advisor
Mark Unwin is an IBRS advisor specialising in the areas of commercial contract negotiation and vendor management. Mark has a career spanning 25 years across Government, Defence, ICT, Telecommunications and Infrastructure, and in this time has developed innovative solutions to transition and transformation ICT contracts, including project management, effective negotiation and relationship management. Mark is adept at aligning ICT service providers using the ITIL service delivery model in particular encompassing service desk implementation, asset management, unified communications and collaboration, end-user computing, ERP systems design and implementation, and software deployment and licensing. Mark has negotiated software audits and licensing agreements for Microsoft, Adobe, Veritas, SAP and Oracle. Mark is CPA qualified and has supported CIOs and CFOs to justify ICT investment programs throughout his career.