- ‘Techquilibrium’ is a balancing act as enterprises embrace agility in their core IT. Infor’s Rod Johnson explores the role of modern ERP in digitalization
Flexible ERP-Technology is fueling the transformation of industries worldwide. Digital innovations are changing the way we work and live. But, enterprises often struggle to keep pace with the new demands and expectations. Remaining competitive requires investment in new solutions. Pressures to adopt modern technologies, such as artificial intelligence (AI), machine learning (ML), and the Internet of things (IoT), can push companies into projects that lack sound strategies, plans for deployment and budgets for training.
The hype surrounding digital solutions also adds to the confusion, sometimes creating expectations that are unrealistic. For some early adopters, proof-of-concept projects brought disappointing results. Plans were derailed, putting the entire IT infrastructure under scrutiny. Some industry pundits are even questioning the role of enterprise resource planning (ERP) solutions in a hyper-connected ecosystem of multiple solutions. Is an ERP solution critical for visibility and a single view of the enterprise performance? Or, does it get in the way of agility? The answer, of course, is that it depends on your ERP system, when it was updated, and if it is deployed in the cloud. Some solutions with built-in industry functionality are highly successful. Others … well, not so much.
Three stars out of five
Just as ERP systems have varying degrees of success, so do digital initiatives. Some have flopped. Others have been wildly successful. Industry observers loved to speculate on the straw that broke the GE Digital’s back. Even the wunderkind of new digital revenue models, Uber, has provided plenty of fodder for skeptics, as the company is now in hot water over its profitability and financial health. This proves once again that a brilliant idea — without sound profits and business management — is unlikely to experience long-term business success.
Gartner’s model of the typical hype cycle includes a “peak of inflated expectations,” followed by a severe drop into the “trough of disillusionment,” as early adopters become discouraged. Digitalization has been no exception to this typical roller coaster shaped curve. While we may be at a low point now, the “slope of enlightenment,” the next phase, may be only months away. Enterprises are certainly moving forward with modernization plans. Digital initiatives are still driving software sales, including migration to the cloud.