Despite the maturity of the technology, fundamental trends and shifts continue to happen in the Enterprise Resource Planning (ERP) software space. Eric Kimberling, CEO of Third Stage Consulting, shared in a video about the future of ERP software to help organisations consider their options as they navigate the industry.
Cloud maturity
“The first trend we are seeing is something that is a weakness today, but in the future should be a strength, and that is the level of maturity we are seeing in cloud solutions,” said Kimberling.
Kimberling noted that some ERP systems originated on-premise, and migrations involve a large investment.
“A few years from now, we are going to see that the cloud solutions are mature enough to rival the on-premise functionality that companies are used to,” he said.
Platform-as-as-service
Kimberling also noted the prevalence of platform-as-as-service, saying, “More software vendors are becoming less concerned with trying to be everything to everyone and provide functionality that does everything that an organisation.”
He said vendors will be more concerned about creating an ecosystem others can build on instead of providing a single all-in-one solution.
Cloud reckoning
“There is going to be a day of reckoning where organisations realise and recognise that their cloud solutions are costing them a lot of money,” he predicts.
There is going to be a day of reckoning where organisations realise and recognise that their cloud solutions are costing them a lot of money.
Eric Kimberling
Best-of-breed ERP
He said this will push software vendors to deliver value that justifies the high cost or drop prices to prevent their clients from transferring to other lower-cost options.
“One of the philosophical battles that I do not think will ever get resolved in the ERP space is whether you should be looking for a single ERP system or whether you should be looking at best-of-breed point solutions,” he said.
He thinks the debate between single ERP versus best-of-breed will never get resolved, but organisations must remember they have options.
Vendor domination
“The software vendors that are dominating today are not likely to be dominating in the future,” Kimberling predicts.
He advises organisations not to focus on a single software vendor and keep their options open as they consider upstart vendors.
Watch the video to hear Kimberling discuss the future of ERP software, such as cloud maturity, platform-as-a-service, cloud reckoning, best-of-breed ERP, and the possibility of upstart vendor domination.
