Exploring Composable ERP

The Future of ERP

Composable Is the way to go to support innovation, drive growth, and squeeze value from existing ERP investments.

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ERP is Table Stakes

While tech headlines tend to focus on the shinier topics — AI, automation, the metaverse — ERP remains a foundational concern for companies worldwide. Adapting to changes in how ERP is defined, connected to other solutions, secured in today’s highly digital environment, and supported on a hybrid platform will be critical to enabling the business to thrive and grow.

According to a Gartner’s 2021 ERP, Procurement, HCM and Finance Survey, more than 70% of organizations have ERP modernization plans that have already started or will start in the next 12 months, and 16% have already completed the modernization process for one or more ERP applications.

“Gartner forecasts that the ERP market will be worth $52.7 billion by 2023, up from $40 billion in 2020.”

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5 Categories of Change

Understanding ERP as table stakes, let’s look ahead to explore the impact of a shift in ERP strategy from integrated suites to a composable portfolio of solutions, and what related actions to take.

Five key categories of change surround a shift to a composable ERP strategy:

Emerging technology will shape ERP strategy

In 1988, General Motors conducted a relaunch campaign around the tagline, “This is not your father’s Oldsmobile.” As we consider the future of ERP, are some vendors putting their hopes on similar marketing spin? Hopefully they’ll find more success than did GM, which killed the century-old brand just over five years later.

58% of CIOs say digital transformation is only going to continue to speed up.

Interoperability & integration are critical

In a world that’s composable, how do you ensure that the individual products and services comprising the application portfolio are bolted together properly and can operate seamlessly with each other?

Talent strategy becomes an art

Composable ERP requires a broader set of support skills than integrated suites. It also requires experts with knowledge that spans the business and IT. Yet, CIOs face a tough truth – some ERP skills are going the way of COBOL programmers: fundamentally critical to operations, but increasingly scarce and losing all appeal as a career path.

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Composable ERP doesn’t eliminate security concerns

There are no easy solutions when it comes to cybersecurity, but when it comes to ERP it can be easy to be lulled into complacency. One the one hand, companies with stable on-premises solutions may assume criminals aren’t targeting ERP, or their organizations’ existing defenses will thwart attackers. On the other hand, companies migrating to the cloud may believe they can simply hand off security concerns to their cloud service providers (CSPs). Neither of these assumptions comprises an effective defense.

49% of respondents in a recent CIO study cite cybersecurity as a top skill to hire for

Supporting composable ERP is different

When ERP is composed of a variety of products and services, who do you call when something doesn’t work? How do you coordinate changes across the portfolio of solutions? And…how do you ensure that a change in one component is compatible with other components? These are just a few questions that need to be thoughtfully answered when moving to composable ERP.

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