Consider a Cloud Strategy

Why is the company’s brand new ERP solution already obsolete – and how do you avoid it?

It happen all too often at companies: the ERP solution is brand new, the most expensive servers have been purchased and after spending two years and thousands of hours on implementation, they are finally ready to put the solution into operation. Instead of being happy, new developments and changing business needs have passed them by – and the new and expensive ERP solution already seems obsolete.

Mobile phones are a good example of how the times have changed. Ten years ago, it was normal to have a phone for five years; today it is normal to get a new phone every two years.

Has the house become too small?

It is of course much easier to replace a mobile phone than an ERP system, so the comparison is probably not entirely fair. Maybe we should compare an ERP system to buying a house instead.

When you are young and you buy a house, you may have fewer resources and expect to have two children. But then it turns out that you had three children, and as time passes your needs for the house itself also change. So should you move or build an addition?

It is often a complex and troublesome task under any circumstances, and many companies imagine it will be the same with their ERP system. The solution is called the Cloud.

With the Cloud, the ERP system can be almost as flexible as a mobile phone

You can change the setup on your mobile phone quickly and easily so it always matches your current needs. Shouldn’t the company’s ERP solution be just as quick and easy to set up, so it can quickly be adapted to changing business needs? There is neither time nor money for a long implementation process and rigid ERP solutions.

With the Cloud, the company gets the necessary flexibility and rapid implementation that many companies need.

The Cloud is like a huge mansion where you are only using one small room

When you need to upgrade or replace your ERP solution, you should consider using a Cloud solution.

Having a Cloud strategy is like having a huge mansion at your disposal, but only paying for the amount of room you use. You can start small and grow as the need arises.

So the only thing still missing is for our customers and ERP vendors to be better about implementing standard ERP solutions instead of customized solutions. Once that happens, customers can update their servers and ERP solutions so seamlessly that they will hardly even notice it themselves.

Read more about this topic in the free book: The Profitable ERP Strategy

I have written a book with input for your ERP strategy, and you can read it for free.

It contains 7 recommendations for a healthy and changeable ERP system:

1. Consider a Cloud Strategy
2. Focus on value and readiness for change
3. Select “best practice” scalable standard functionality
4. Have a strategy for flexible management of master data
5. Select ongoing operating costs rather than large investments
6. Consider a strategy for upgrades where only relevant data is included
7. Select a needs-driven ERP strategy – perhaps with different platforms?