How complex is your IT landscape?
During initial conversations with new prospects I ask, “What systems are you using?” They usually reply with the name of a legacy ERP system which covers finance, sales and purchase orders, inventory and maybe works orders.
But scratch a little deeper and a whole list of applications, databases and spreadsheets become apparent. Their reason for looking for new ERP is generally outdated systems, poor reporting and inefficient processes; however when they start looking they are often surprised just how many standalone point solutions, databases and spreadsheets are used across the company.
Crucial parts of the business are often running on unsupported point solutions brought into fill gaps not covered by the legacy ERP and giant spreadsheets that have little or no security.
CRM, sales forecasting, customer service & support and HR are often standalone point solutions or spreadsheets and BI/reporting and planning & budgeting are often managed in spreadsheets.
This myriad of systems can cause:
- Restricted growth because of a lack of company-wide visibility and poor staff efficiency.
- Headaches for financial and management accountants compiling reports
- Significant risk to the business because of a lack of security
- Poor customer service resulting in loss of business
- Challenges responding to on-going change
- Hidden costs for point solutions that don't give good value for money
This hairball has evolved over time, because companies often find it easier not to touch the core ERP. Instead, standalone point solutions with little or no integration are added with workarounds that only partially fix an issue. After a period of time, companies realise they have a huge mess on their hands and are vulnerable to competitors because of it.
In recent years everyone has been preaching the cloud as the magical cure-all for all of this. However many “cloud” products were not written for the cloud. The vendors have just hosted them in datacenters and charged for them on a subscription. The end results are the same as on premise - integration nightmares, version lock, data is fragmented, processes sit in silos, there are multiple user interfaces, broken transactions and no single version of the truth.
Until companies do a proper stock-take of what systems, databases and spreadsheets are used they don't have a full appreciation of the current state of play or what the scope for their new ERP system should cover.
Creating a diagram of the existing IT landscape, showing current or planned processes and potential integrations helps as part of the selection process review for introducing new ERP and can define what is in scope for phase 1 and other phases.
Having a clear picture of the current IT landscape also helps understand what the true current IT costs are and whether you are getting real value for money, compared to replacing with new ERP.
So, when did you last take stock of your current IT landscape?
Great article John. Then replace with a "modern system". Real-time data, real-time reporting, and a much reduced software complexity. We know what modern looks like.
Nice piece, you could be in content marketing!
Well written John, a clear concise summary! If you do have a particular bespoke operational application that cannot be replaced easily in the short term, then the advantage of a well established, true cloud ERP application like NetSuite is that it will have proven and easy to connect interfaces. Coupled with the fact that the toolkit to extend and configure NetSuite comes pre-bundled, you future-proof your ability to adapt to further business changes.
Great post, John. Very nice summary of the key issues many customers Face when they look under the hood to see what business systems are actually supporting their organisations.