Not only do organizations need to decide between ERP vendors, but they need to weigh the costs and benefits of different deployment options, integration strategies and digital technologies, like IoT and artificial intelligence.
Do you already have an IT strategy? It doesn’t hurt to reevaluate it to determine if it’s really meeting your organization’s needs, both now and in the future. Here are five signs you need to redefine your IT strategy:
1. Your enterprise technology hasn’t been updated in the last decade
Most organizations replace their ERP systems every ten years – at minimum. If you’re not replacing your enterprise technology every decade or so, you’re falling behind your competition. While it’s wise to make the most out of your current IT investments, you should also be able to discern when systems become outdated.
2. Your IT strategy isn’t aligned with your overall business strategy
When CIOs decide to implement new ERP software, they have good intentions, but sometimes, those intentions aren’t aligned with the organization’s overall strategy. For example, an organization may want to reduce capital costs, but the CIO wants to implement a SaaS solution instead of an on-premise solution. Before selecting ERP software, you should first define your strategic objectives, and then define specific IT objectives that support those overarching business goals.
3. You haven’t considered all the strategic options
You may think an IT strategy entails a full-scale ERP implementation. However, ERP software is just one of many technology solutions that can improve your operations. Digital technology such as IoT, artificial intelligence and business intelligence are also viable options.
4. You don’t have an actionable plan for replacing your enterprise technology
5. Your IT strategy doesn’t meet your organization’s ROI thresholds
SAP vs. Oracle Case Study
SAP and Oracle both invest heavily in cloud technology. However, our client was skeptical about cloud scalability and unsure if the products were mature and proven.
How to Develop an IT Strategy
1. Define your company’s overall strategy
2. Define IT’s role and purpose in your organization
Does your organization view IT as a commodity or as a competitive differentiator that provides unique value to your customers? The answer to this question will lead to one of two decisions: outsourcing IT functions or building IT competencies in house. This will also determine the types of technology you consider – cloud, SaaS, on-premise, best-of-breed, etc.
3. Assess your IT department’s competencies
If your IT department is sophisticated, your organization may be equipped to handle a best-of-breed, on-premise ERP system. A less sophisticated IT department may want to implement a SaaS ERP system instead. When assessing your competencies, be sure to consider your overall physical infrastructure.
4. Consider all your digital transformation options
The enterprise technology industry has evolved from just a few large ERP vendors to several vendors offering a variety of point solutions. Instead of implementing a single ERP system, you can now choose from industry-specific solutions and point solutions focused on certain functions. Aside from technology, you can transform your organization by reengineering your business processes or reimagining your business model.
5. Develop a long-term strategy
6. Consider the non-technical aspects of your digital strategy
Many organizations focus on the technical aspects of their IT strategies without considering the people and process aspects. Your IT strategy should address business process reengineering and organizational change management – both of which will help you realize the full benefits of your software implementation.