Don't Let ERP Costs Spiral Out of Control - Blytheco Blog
Don’t Let ERP Costs Spiral Out of Control

Don’t Let ERP Costs Spiral Out of Control


A recent article in Information Age titled, “Businesses that neglect strategic app integration will see ERP costs spiral out of control, says Gartner,” came as no surprise to those of us at Blytheco.

We’ve seen it happen more often than we like in our 35+ years as software consultants.

Because of changes in the software industry, including cloud software, some executives are beginning to believe that business software can simply be downloaded and installed like an iPhone app. Unfortunately, it’s not that simple for business software solutions, and that’s what Gartner has reported.

“The increasing complexity of Enterprise Resource Planning (ERP) application portfolios is driving the need for a defined postmodern application integration strategy, according to new advice from the analyst firm,” the article reports.

We couldn’t agree more. Making the wrong choices without guidance can send your ERP costs through the roof.

Because of the many excellent options available, businesses now have more applications that can integrate with their ERP solutions, including:

  • Warehouse management
  • Ecommerce
  • Tax automation
  • Document management
  • And many more

However, integrating these applications with an ERP system requires more than a download and click of a button:

  • A well-defined application integration strategy
  • Insight into how the software integrates
  • Capacity on the part of staff for the time required for successful integration
  • The skills needed to integrate the applications successfully

ERP Costs out of controlAs stated in the Information Age article, “Postmodern ERP represents a fundamental shift away from a single vendor mega suite toward a more loosely coupled and federated ERP environment,” said Carol Hardcastle, research vice president at Gartner. “This new environment promises more business agility, but only if the increased complexity is recognized and addressed.”

In addition to the items listed above, successful implementation of any ERP and integrated applications requires things we’ve detailed before, which are the basis of our 35 years of success:

  • Thorough discovery to define the business needs, goals and industry requirements
  • Careful definition of the scope of the project to insure all key deliverables are provided
  • Meticulous development of the budget required to avoid overruns
  • The expertise to implement and support today’s ERP solutions

The article concludes, “As many organizations move from an on-premises monolithic state, they acknowledge they have little or no skills to support postmodern application integration, naively assuming the vendors will take care of it.

“But vendors are not doing this, which has left many organizations scrambling to integrate applications when they finally realize this grim reality.”

Don’t be caught in this trap—contact a reliable partner who can help you make sure that you are getting the software you truly need, who will make certain that it all works together, and who will help you when you need support… and most importantly, not let your ERP costs spiral out of control!

If you’d like to discuss your needs with a Blytheco consultant, contact us any time.

 

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