**Cloud vs.

The answer, as with many things in business, is nuanced. While cloud ERP offers undeniable advantages, it’s not a magic bullet. There are still valid reasons to consider on-premise ERP systems. Let’s delve into the pros and cons of both approaches to see if we can gain a better understanding of the cloud ERP’s true value proposition.

Instead, the real value of cloud ERP lies in the ongoing journey of transformation. This journey is not just about implementing the system, but about leveraging its capabilities to drive business transformation. This transformation requires a customer-centric approach, where the ERP system becomes an integral part of the entire customer journey.

This is a common refrain in the modern business world. Customers are demanding more than ever before, and businesses are scrambling to meet those demands. But the focus on the back office, on internal efficiency, can sometimes overshadow the customer experience. This is where the ERP system comes in, promising to streamline operations and improve efficiency.

The shift in language is a sign of a larger trend. Businesses are increasingly recognizing the value of their data and the need to leverage it for strategic decision-making. This is reflected in the growing adoption of data-driven strategies and technologies like AI, machine learning, and big data analytics. The shift in language is also a reflection of the changing nature of work.

This shift in response is a testament to the growing awareness of the value of ERP systems. It’s not just about automating processes anymore; it’s about leveraging data to drive business decisions and gain a competitive edge. For example, consider a manufacturing company that uses an ERP system to track inventory levels in real-time.

Most high-performing ERP customers are also outward-facing, learning from their peers and swapping project pitfalls. But we can start by asking some hard questions, and laying out the advanced benefits. It doesn’t hurt to take an early crack at the impact of AI as well. Cloud ERP vendors – ring-fenced or transformative? The pandemic exposed competitive weaknesses and supply chain vulnerabilities. In turn, this motivated companies to change up – and invest in cloud software. But that urgency also led buyers to invest in customer-facing projects, with a more obvious return. Or: to invest in cloud apps that have a faster impact, and a more forgiving project timeline. Nevertheless, some cloud ERP vendors absolutely saw a pandemic boost, largely driven by the remote work imperative. At the time, Brian Sommer issued a wake-up call that is still relevant: ERP’s new direction – it’s coming from the outside. He warned:

** A CEO, CFO, or CIO might only upgrade their ERP software if they have no other option. This statement highlights the importance of ERP software in modern organizations. It also suggests that current ERP systems might not be equipped to handle the demands of the modern business world.

There are many different types of cloud ERP solutions, each with its own strengths and weaknesses. Some are better suited for small businesses, while others are more suitable for large enterprises. For example, consider a small business owner who wants to manage their finances, inventory, and customer relationships.

**1. True SaaS ERP vs. So-SaaS:**

The author distinguishes between “true SaaS ERP” and “so-SaaS” offerings. True SaaS ERP, according to the author, represents a more comprehensive business model. It goes beyond simply offering a subscription-based service.

While AI offers exciting potential, it’s not a silver bullet. **The problem with the ERP vendors’ pitch is:**

* **Data ownership and access:** While ERP vendors do hold valuable data, they are not necessarily the owners of that data. In many cases, they are simply licensed to use and manage it.

Let’s dive into the power of automation and how it can transform business processes.

But for the customer, it’s a huge win. The summary provides a statement about the current state of data management in many organizations. It highlights the challenges and opportunities associated with achieving a single source of truth. Let’s break down the key points:

SaaS ERP systems are flexible and adaptable, allowing for customization and differentiation. This flexibility is a key advantage over traditional on-premise ERP systems. However, the standardization discipline is still important for ensuring consistency and efficiency. **Detailed Text:**

The rise of SaaS ERP systems has revolutionized the way businesses manage their operations.

It’s not a perfect solution, but it’s a better alternative to a “one-size-fits-all” approach. **Stage 1: Implementation and Configuration**

* **Focus:** Setting up the ERP system’s core functionalities. This includes defining business processes, data migration, and configuring the system to meet specific organizational needs.

(most cloud ERP customers are in a mix of phase one, and some aspects of phase two. Some are only in phase one, even if they’ve been live for years. Few can speak to the true gains of phase two). Then the third phase: 3. Achieving new business opportunities through a more agile and open platform. Think: mobile commerce apps, opening up supplier portals, turning products into consumable services, opening a new B2C marketplace, integrating an acquisition or rolling out a subsidiary – all of which draw on the visibility of process flows, from supply chain -> back office -> customer-facing.

1B – Optimization – streamlining processes and workflows, automating tasks, and improving data quality. This phase focuses on efficiency and productivity gains. 19 – Consolidation – merging multiple legacy systems into a single, unified system. This phase aims to reduce complexity and improve data consistency. 2A – Integration – connecting legacy systems to the new system. This phase focuses on data exchange and interoperability.

2A – Data visibility/single source of truth part one – taking action on the numbers, instead of arguing about the numbers. Yes, this is a thing. 2B – Data visibility/single source of truth part two – dashboarding. Adopting the vendor’s dashboards, and serving up role-based dashboards to execs and LOB managers. Beginning to use the real- information to make real-time adjustments, e.g. store/ad promotions, inventory adjustments and freight tracking. 2C – Automating workflows without any need to speed-dial IT, utilizing so-called “no-code” and “low-code” tools. Personalizing screens and views with the same tools, without mucking up upgrade eligibility. 2D – Labor re-allocation into higher-value tasks – One of the first strategic benefits: prior administrivia (and manual tasks) across roles has (hopefully) been automated by the new system. In turn, that allows employees to be more strategic – IF roles can be shifted, and people embrace the change. Big IFs. Headcount reductions might be part of this, but if that’s the focus, you’re probably doing it wrong.

2E – Data visibility part three – automated decision support, role-based/prescriptive AI actions, and a sophisticated alerts infrastructure. Very few ERP customers are here yet, though some are making strides on alerts. 3A – Platform benefits, add-ons, and industry functions – outside of configuration options, there are nifty ways of extending functionality via the vendor’s app store and ISV partners, allowing for a more vertical approach to ERP without the trap of customizing. Most customers don’t have momentum here, perhaps due to app development shortfalls internally, or with service partners unfamiliar with building out ERP platform IP. 3C – Integration of external data sources with cloud ERP transactional data, primarily for decision making purposes – and predictive algorithms. A recognition that a big chunk of key decision-making data is outside the internal system, from IoT sensors to social sentiment to weather data. ERP vendors are, for the most part, late to this party, but I’m seeing more examples of integrating external (and unstructured) data.

The summary provided focuses on the transformative potential of data in driving business innovation and growth. It highlights the ability of data to unlock new business models, generate insights, and fuel the development of innovative products and services. **Key Points:**

* **Data-driven innovation:** Data is a powerful tool for driving innovation, enabling businesses to identify new opportunities, optimize existing processes, and develop novel solutions.

**Generative AI: Hype vs.

The current state of generative AI is marked by a significant shift in the way businesses operate. While the hype surrounding generative AI is undeniable, the reality is that many vendors are still adding to their generative AI capabilities, but they are at least delivering something of value already, via predictive AI or robotics. Embedded/role-based analytics are also getting better.

* AI is poised to revolutionize the way businesses operate, particularly in the realm of ERP systems. * AI’s impact on ERP benefits realization is expected to be significant, but the current state of AI adoption is limited. * While AI has the potential to transform ERP systems, its impact on benefits realization is still in its early stages.

Let’s dive into the world of generative AI and its potential impact on the ERP landscape. Generative AI, a powerful tool in the realm of artificial intelligence, has the ability to create new content, including text, images, and code. This technology has the potential to revolutionize various industries, including the ERP sector.

* The stages of digital transformation are less of a framework and more of a nudge. * ERP vendors might need to double down on AI. * AI is not a silver bullet.

He was a champion of this idea, and I’m grateful for his insights. The “thrive after go-live” concept emphasizes the importance of focusing on tangible benefits and measurable outcomes after the implementation of an ERP system. It’s not just about getting the system up and running; it’s about ensuring that the system delivers value to the organization and its customers.

This statement highlights the critical importance of vendors delivering on their promises. It emphasizes that the future of ERP is not solely about technological advancements or innovative features, but rather about fulfilling the expectations and needs of users. Let’s delve deeper into the implications of this statement and explore the potential consequences of vendors failing to meet their commitments.

The midmarket will not experience the same AI revolution as large enterprises. This is due to several factors, including the midmarket’s limited resources and the complexity of implementing AI solutions. **Detailed Text:**

The midmarket, often characterized by its smaller size and limited resources, will not experience the same AI revolution as large enterprises.

This is a critical point. The cloud ERP vendor landscape is incredibly diverse, with a wide range of offerings and maturity levels. Some vendors are early adopters, pushing the boundaries of what’s possible with cloud ERP, while others are more established, focusing on traditional ERP functionalities. This diversity is a double-edged sword.