The new paradigm of ERP

Today you just cannot wait for years to get value from your ERP investment. Those days are long gone.

These years the ERP market is going through a fundamental paradigm change, or disruption if you like, and as a customer on a ERP system you will have to navigate through all the new possibilities.

It is no use to implement ERP in the same way as in the 90s. Long analysis processes, development and heavy implementation and training is no longer your road to success. This method is obsolete due to market forces.

The paradigm shift forces ERP suppliers to meet the rapid changes that companies have to operate in every day. ERP systems must be dynamic and scalable, also in terms of functionality and not least, data structures.

You can find more advice about this topic in the free book: The Profitable ERP Strategy

It contains 7 guidelines for keeping a healthy and flexible ERP system:

1. Consider a Cloud Strategy

We see it happen all too often at companies: the ERP solution is brand new, but business needs have changed during the project, and the new and expensive ERP solution seems already obsolete.

2. Focus on value and readiness for change

ERP systems today can do all sorts of interesting things. However, when users only need fifty processes, the rest of the processes becomes an obstacle, as the system is difficult to use.

3. Select “best practice” scalable standard functionality

It is crucial for the future ERP systems to allow customers to select deep functionality for exactly what they need – and deselect when they do not need them anymore.

4. Have a strategy for flexible management of master data

One of the hardest things about working with master data is setting it up correctly from the outset, but with the right ERP-tools, you can be your own system developer.

5. Select ongoing operating costs rather than large investments

We tend to think about development and operation of ERP systems in an outdated way, out of sync with reality.

6. Consider a strategy for upgrades where only relevant data is included

It is something of a paradox that ERP systems constantly collect more and more data, while we can’t clean this data up in any other way than by starting over completely.

7. Select a needs-driven ERP strategy – perhaps with different platforms?

Everybody has worked with a single mantra for many years: Put the entire company and all its activities and processes and records of this and that into a single ERP system. Is that really the best way?