Partner Article

Gartner ERP predictions for 2022: FinancialForce Comments

By Andy Campbell, global solution evangelist at FinancialForce

Prediction 1 By 2023, 65% of large enterprise developments will be executed by predominantly remote implementation teams.

“This is completely true and it is welcoming to see how both customers and vendors have successfully embraced this change. It is also worth noting that in a cloud world, the relationship between customer and vendor doesn’t finish as soon as the project goes live. You continue to engage with that customer on an ongoing basis, as you provide them with new releases and additional functionality. The ability to continue to share and collaborate with both customers and partners needs to be an integral part of the capabilities of your ERP system. A new solution is not just for Christmas – it’s an ongoing relationship.”

Prediction 2 By 2024, more than 60% of organisations will deploy cloud ERP as an ecosystem of application and technology platforms from multiple vendors.

“The hybrid model will definitely dominate but this does bring its own challenges, since managing and maintaining various clouds does have a cost. The biggest risk is that each of the clouds will have their own cadence of regular updates and these upgrade cycles will probably be out of sync with each other. As a consequence, customers risk having to spend all of their time doing regression testing across all of the integration points between these different systems each and every time that any of the vendors upgrade any of their systems. This will not only add significant time, effort and cost but will also act as a brake on innovation.”

Prediction 3 By 2024, at least 50% of existing mega vendor clients will evaluate multiple vendors rather than automatically adopting the latest versions of incumbent ERP suites.

“Traditionally, replacing existing ERP systems has been perceived as being a large and unpleasant task for businesses and the barriers to migrating to a new model have been prohibitive. In order to overcome these issues, organisations have begun to adopt a phased approach, replacing their current ERP systems and moving strategically to a cloud model, but doing so in a staged manner. For example, this might entail a piece-by-piece approach, moving one business unit, or operational area at a time. Perhaps this could involve implementing cloud-based systems for key business functions such as project automation and billing using a sub ledger model. This could deliver significant business benefits without requiring the wholesale replacement of the core general ledger system. The advantage of this phased method is that you can deliver what is required to improve business operations, but do so in a way that minimises risk, business disruption and cost.”

This was posted in Bdaily's Members' News section by FinancialForce .