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The Future of ERP

Composable is the Way to Go in order to support innovation and growth, and help squeeze value from existing ERP investments

The Future of ERP

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.

Gartner® research suggests:

“By 2024, at least 50% of existing ERP megavendor clients will evaluate multiple vendors rather than automatically adopting the latest versions of incumbent ERP suites.”[1]

“In the composable ERP era, profound changes will be required within organizations — therefore, CIOs must develop different mindsets to support those.”[2]

[1] Gartner, “Predicts 2022: Postpandemic Recovery Optimism and New Strategic Growth to Fuel Investment in ERP”, Denis Torii, Tim Faith, Greg Leiter, December 14, 2021.

[2] Gartner, “What CIOs Must Do to Avoid Disappointing ERP Initiatives”, Denis Torii, Refreshed 23 March 2022, Published 25 September 2020.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

 

5 Categories of Change

Understanding ERP as table stakes and therefore highly valued, we set our sights on the year 2027—five years from now—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 most companies’ ERP
  • Interoperability & integration are critical
  • Tech talent management becomes an art
  • Composable ERP doesn’t eliminate security concerns
  • Supporting composable ERP is different
Emerging technology will shape most companies’ ERP

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 5 years later.

Read: Top Emerging Technology Trends To Watch
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?

Read: With Composable ERP, Interoperability and Integration Are Not Optional
Tech talent management 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.

Read: Talent Management Could Be Your Achille’s Heal
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. On 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.

Read: Ways to Bolster Security as You Move ERP to the Cloud
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 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.

Read: Composable ERP Support is a Horse of a Different Color

Featured Clients:

Green Cargo
Composable ERP strategy using low-code IT model delivers operational improvements

A composable ERP strategy was the catalyst for building highly responsive, real-time microservice-based applications in a low-code platform. The combination of a composable EPR strategy and independent support for the non-cloud part of an application portfolio allowed Green Cargo to digitalize the business with unprecedented speed and execute transformation and innovation initiatives in the cloud.

Learn More
Featured Clients:

ACM
Bi-modal approach to composable ERP enables a self-directed IT roadmap

ACM is using a composable ERP approach to ensure that resources are channeled toward what it does best — producing quality products for customers — not, as CIO Erik Looi explains “building a big team of developers or support engineers, when I can get that externally.” ACM’s philosophy is reflected in its bimodal IT strategy. Mode 1 is focused on ensuring a stable foundation to keep core systems and processes running. Mode 2 is oriented toward innovation and exploration.

Learn More

Related Resources

Composable ERP for SAP: Your Roadmap, Your Advantage
eBook
Composable ERP for SAP: Your Roadmap, Your Advantage
Read eBook
4 Quick Wins to Drive Success for Your ERP Consolidation Project
Blog
4 Quick Wins to Drive Success for Your ERP Consolidation Project
Rimini Street Staff
2 min read

CIOs: All Eyes are on You An ERP consolidation is no picnic. And it’s certainly not fast. It can be long and complicated, with the potential for stakeholders to lose interest and abandon ship. Add to that the severe lack of skilled ERP talent able to do the heavy lifting of integrating and decommissioning servers, […]

Read Blog
Rimini Street Announces Upcoming 2025 Investor Conference Schedule
Press Release
Rimini Street Announces Upcoming 2025 Investor Conference Schedule

LAS VEGAS, May 15, 2025 – Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support and innovation solutions, and the leading third-party support provider for Oracle, SAP and VMware software, today announced that Michael L. Perica, chief financial officer, and Dean Pohl, vice president, treasurer and investor relations, will be presenting […]

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