Now that moving to the Cloud has become mainstream, it’s time for organizations to confront their biggest enterprise application challenge in the era of digital disruption – revamping their enterprise resource management (ERP) systems to keep up with the times.
It wasn’t too long ago that many industry pundits suggested that the advent of the Software-as-a-Service (SaaS) model was okay for front office applications, such as customer relationship management (CRM) and collaboration, but would never make inroads in the more complex and complicated world of back office systems, such as financial management and ERP.
Those days are gone.
Organizations of all sizes across every industry are facing escalating customer expectations, intensifying competitive pressures and a widening array of operational demands due to new technological innovations such as the Internet of Things (IoT), artificial intelligence (AI) and machine learning (ML).
The cumbersome ERP systems of the past were not designed to respond to these challenges. Instead, they were often put into place during a period of relatively straightforward external requirements to systematize a relatively static set of internal business processes. As a result, many organizations have been forced to cater their corporate strategies to fit within the constraints of their ERP systems rather than pursue new business opportunities that can be supported by their internal operations.
The growing gap between the functional capabilities of traditional ERP systems and the operational needs of many organizations has resulted in a slowdown in this software segment. Allied Market Research believes the global ERP market will only experience a 7.2% compound annual growth rate (CAGR) through 2020, with the vast majority of the growth being driven by a new set of cloud-based ERP solutions.
There have been a number of Cloud-based, SaaS-oriented companies that have been working hard to fill this void in the ERP market for the past ten years. While Workday has received the bulk of the attention, there are others that have also made inroads into large and mid-size organizations worldwide. There are a number of factors which have contributed to the accelerating adoption of Cloud-based ERP solutions. ERP in the Cloud
The success of Salesforce.com in the CRM, sales and marketing automation and service management arenas, along with ServiceNow in the latter category, has set an example and a new standard for how enterprise applications should look and perform in the eyes of a growing number of corporate executives and end-users. Now, they want similar systems to support their escalating back office needs. ERP in the Cloud