Robert Kugel's Analyst Perspectives

Deciding When to Replace ERP Is Complicated

Posted by Ventana Research on Dec 19, 2014 9:09:36 AM

A company’s enterprise resource planning (ERP) system is one of the pillars of its record-keeping and process management architecture and is central to many of its critical functions. It is the heart of its accounting and financial record-keeping processes. In manufacturing and distribution, ERP manages inventory and some elements of logistics. Companies also may use it to handle core human resources record-keeping and to store product and customer master data. Often, companies bolt other functionality onto the core ERP system or extensively modify it to address limitations in the system. Because of the breadth of its functionality, those unfamiliar with the details of information technology may perceive ERP as a black box that controls just about everything. So it’s not surprising that when a company’s information technology becomes more of an issue than a solution, many assume that the ERP system needs replacing. This may or may not be true, so it’s important for a company to assess its existing ERP system in the context of its business requirements (as they are now and will be in the immediate future) and evaluate options for it.

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Topics: ERP, Operational Performance Management (OPM), Analytics, CIO, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Data, Financial Performance Management (FPM), HR, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), order-to-cash

Midsize Companies Find ERP in the Cloud Increasingly Attractive

Posted by Robert Kugel on Aug 23, 2012 11:55:22 AM

Midsize businesses “pay” for their use of entry-level accounting systems by not having the essential information they need readily available and by using up valuable time that could be better spent generating business, finding issues or responding to opportunities sooner or simply enhancing the efficiency of the organization. Nevertheless, the transition from an entry-level accounting package such as QuickBooks to an on-premises system can be daunting for companies whose entry-level software no longer addresses their needs. Usually, the shortcomings start off as minor annoyances for companies that have between 100 and 500 employees and grow over time, and usually the pain grows with the number of employees and the volume and complexity of the underlying business. As business volumes expand and complexity grows, entry-level accounting systems are increasingly less able to support the underlying business. Yet finance executives usually don’t want to migrate to a new system until their old software threatens the orderly management of the business or becomes an overwhelming burden on finance operations. I know this firsthand, since not all that long ago I worked at a company where the CFO thought his biggest IT challenge was finding spare parts for the ancient Burroughs mainframe on which our financial system ran.

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Topics: ERP, end-to-end, finance cloud, process, procure-to-pay, Cloud, Cloud Computing, Accounting, Business Performance Management (BPM), Business Process Management, CFO, finance, Financial Performance Management (FPM), Sales Performance Management (SPM), accounting software, business process execution, financial systems, FPM, order-to-cash

Users Should Apply ERP To Manage End-to-End Processes

Posted by Robert Kugel on Dec 12, 2011 9:28:02 AM

ERP systems not only collect information about transactions, they also automate processes. The latter includes managing the handoffs between roles and enabling electronic document creation and management associated with that. Indeed, it was the promise of improving process management and process execution that spurred companies to adopt ERP in the 1990s.

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Topics: ERP, Operational Performance Management (OPM), end-to-end, process, procure-to-pay, Business Performance Management (BPM), Business Process Management, CFO, Financial Performance Management (FPM), business process execution, order-to-cash