Is Your ERP a Strong Foundation for Emerging Tech?By Guest Author | Posted 2014-09-17 Email Print
Today's technologies are best deployed when they leverage a strong foundation of transactional data—the kind of data that is largely managed by your ERP system.
You must consider several elements when determining your company’s best course of action. I encourage you to answer the following questions before you decide:
1. How much has your company grown and changed since your ERP system was implemented? If you’ve entered new lines of business or new markets, you may need to revisit the adequacy of your current ERP system.
2. To what extent do you believe your company has an opportunity to optimize business processes—or even undergo business transformation—and will your current ERP system be equipped to support this kind of initiative?
3. Is your current ERP system still a good fit, or will moving to a new one give you functionality that you need for current and future growth?
4. How heavily customized is your current ERP system, and is it practical to upgrade it, given the extent of your modifications?
5. Did you realize the benefits you expected from the initial implementation? If not, why not? Identify what you would do differently based on the lessons you learned the first time.
6. Does your vendor still support the product and the version you are running?
7. At what stage in its life cycle is your ERP system—from the vendor’s perspective and from yours?
8. Which approach would have the most attractive cost/benefit model?
9. How does each approach differ with respect to risk and how can you best manage it?
10. What are the system integration considerations, with respect to each alternative?
These are not questions to be taken lightly. Many companies have already asked themselves about the current state of their ERP system and their go-forward viability.
This is the time to come to grips with the state of your ERP system and begin preparing to address it—either now or within the next few years. The right answer will be different for every company. For some, working with an independent facilitator can help streamline this decision-making process.
Tony Perrone is vice president of enterprise technology solutions at ProNexus.