Enterprise resource planning (ERP) modernization is the re-architecting, re-platforming, re-hosting, replacing, re-engineering, or retiring (to name a few) of the software to align more closely with current business needs. The overall goal is to create new value. In fact, 31 percent of small-to-medium businesses (SMBs) have a goal to modernize their business systems. But why is modernizing your ERP system so important? Because ERP must address more (and more) complex processes in a digital era.
And this can be a problem for fast-growing SMBs. ERP is a mission-critical application. It provides decision-makers with needed visibility, streamlines processes and promotes efficiency, enhances collaboration, and creates a master data repository (a single source of truth, if you will). Growing companies can’t afford to become complacent with this business-critical application. In this era of mobility, big data analytics, and always-on transactional demand, your ERP system must perform faster, handle more capacity, and be 100 percent reliable. Not only that, but it must support new capabilities such as machine learning, blockchain, digital assistants, and artificial intelligence.
The average age of an ERP solution with medium-sized (midsized) companies is 7+ years. It is very hard to transform and support a variety of digital initiatives, keep one step ahead of your customers, and reduce costs with a system that old. Utilizing the same ERP solution for seven years is like trying to collaborate using a thumb drive (which happened to be the hot technology at the Consumer Electronics Show (CES) in 2012).
Increased efficiency (which leads to cost savings)
Scalability (which lets companies rapidly expand their ability to process a higher number of business transactions during peak business cycles)
Lower capital expenditures (which are replaced with a ‘pay as you go’ computing model)
Simplified system management and updates (thanks to a common suite of application and infrastructure management tools)
Improved marketplace agility (which is made possible by a better understanding of profit winners/losers, better data for expansion initiatives, etc.)
Greater mobility and flexibility (employees have access to needed information wherever they are, boosting job satisfaction levels and removing process bottlenecks)
That is a lot to digest, and it is difficult to know where to start. And that is where Oracle can help. Download our newest ebook, which lays out five easily digestible chunks to help you modernize those business-critical applications to deliver additional significant value to your business.