This marks the final blog in our three-part series discussing ERP industry trends for the year 2020. Over the last few weeks we have provided an overview of our new white paper, 20/20 Panoramic View of the ERP Industry, highlighting trends that are highly relevant to organizations in the process of implementing ERP software.
To continue this series, I’ll discuss three additional trends that likely will impact the ERP industry in 2020:
7. The return of best-of-breed and two-tier solutions. There was a time when IT environments with more than one ERP system were considered bad practice. While that still may be the case for many organizations today, forward-thinking CIOs and CFOs recognize that a best-of-breed or two-tier strategy isn’t necessarily a disadvantage. After all, single ERP systems can never be everything to everyone in your organization – and integrating systems is becoming easier day by day – so more companies are starting to consider multiple systems to meet their needs. For example, an organization may find that it wants a Tier I solution like SAP or Oracle for its back-office financials and inventory management, but would prefer more specialized packages from Infor, Epicor, IFS and others for more niche functions, such as manufacturing, warehouse management, demand planning and other industry-specific functions. While single-system solutions offer a relatively limited number of options in the marketplace, the best-of-breed option opens up a nearly infinite number of possibilities to address the diverse needs of an organization.
8. The rise of independent ERP consultants and the “single throat to choke” consulting model. When Panorama Consulting set up shop and pioneered the concept in 2005, there was no such thing as independent consultants. Now, this concept is becoming increasingly mainstream and accepted by the market. Independent consulting – a market that Panorama leads with the most market share globally – has become best practice and will continue to increase in adoption between now and 2020. Forward-thinking organizations will use independent consultants to not only evaluate and select potential ERP systems, but also to help implement solutions, manage organizational change, reengineer business processes, provide functional and technical experts in an organization’s chosen software, and provide quality assurance and oversight of system integrators. In other words, the best independent ERP consultants provide a one-stop shop, or “single throat to choke,” for organizations needing help with their ERP initiatives.
9. ERP consultants will be required to be certified in tested and proven methodologies and toolsets. Gone are the days of gun-slinging consultants powering their way through ERP implementations with whatever tools that came to mind at the moment. This flawed and unpredictable approach is a big reason why so many ERP implementations have failed. Instead, organizations are recognizing the need for consultants who are trained in specific methodologies and toolsets that have been proven and tested over time. In other words, the more successful ERP implementation teams leverage collective best practices learned from thousands of ERP implementations via repeatable methodologies. For example, Panorama’s entire consulting team is trained in its proprietary and technology-agnostic 360-Degree ERP Certification program, which is based on years of research, experience and best practices. Organizations that demand this more innovative and effective approach from their consultants will ensure that they are not leaving their ERP implementation outcomes to chance.
While no one can predict the future with 100% certainty, there are a number of trends we see developing that will be important for CIOs, CFOs, project managers and implementation teams to navigate carefully into the future. By understanding, embracing and mitigating these various trends, organizations will be better equipped to ensure their ERP implementations are successful, rather than repeating the mistakes and failures of years past.
To learn more, download our eBook, Nine Business and Technology Trends to Watch.