agility in disruptive times qad 2018 · how well prepared are you for the unpredictable, yet...

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April 2018 THE VALUE OF AGILITY IN ERP DURING DISRUPTIVE TIMES Fit and functionality has always been the linchpin in selecting software that runs your business. When companies are asked to stack rank the priority of selection criteria for Enterprise Resource Planning (ERP) solutions, this is clearly at the top of the leader board, followed closely by completeness of solution. While features and functions are indeed important, there is danger in making a decision solely on what you need today, because it might not be what or all that you need in the future. The 2018 Mint Jutras Enterprise Solution Study found 90% of companies believe they face some level of risk in their businesses and/or industries being disrupted by new innovative products, new ways of selling or pricing existing products or services, entirely new business models, or some combination of all of the above. And then of course there are still the more traditional disruptive factors like expansion and growth, organizational restructuring and regulatory changes, just to name a few. All this disruption can have a cascading impact on business application requirements, making agility - the ability to easily innovate, evolve and change - even more important than current functionality. How well prepared are you for the unpredictable, yet inevitable disruptive forces of the digital economy? After all, we live in very disruptive times. DISRUPTION? WHAT DISRUPTION? We asked survey participants in our 2018 Mint Jutras Enterprise Solution Study to estimate the level of risk they face in their industry (and therefore their business) being disrupted (Figure 1). Figure 1: How much risk do you face in your industry being disrupted? Source: Mint Jutras 2018 Enterprise Solution Study Data Source In this report Mint Jutras references data collected from its 2017 and 2018 (and prior) Enterprise Solution Studies. For years this annual study has investigated perceptions, goals, challenges and status of software used to run a business, as well as the impact of these solutions on the enterprise. Each study collected responses from over 400 participants from companies of all sizes from very small to very large, representing a wide range of industries.

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Page 1: Agility in Disruptive Times QAD 2018 · How well prepared are you for the unpredictable, yet inevitable disruptive forces of the digital economy? After all, we live in very disruptive

April2018

THEVALUEOFAGILITYINERPDURINGDISRUPTIVETIMES

Fitandfunctionalityhasalwaysbeenthelinchpininselectingsoftwarethatrunsyourbusiness.WhencompaniesareaskedtostackrankthepriorityofselectioncriteriaforEnterpriseResourcePlanning(ERP)solutions,thisisclearlyatthetopoftheleaderboard,followedcloselybycompletenessofsolution.Whilefeaturesandfunctionsareindeedimportant,thereisdangerinmakingadecisionsolelyonwhatyouneedtoday,becauseitmightnotbewhatorallthatyouneedinthefuture.

The2018MintJutrasEnterpriseSolutionStudyfound90%ofcompaniesbelievetheyfacesomelevelofriskintheirbusinessesand/orindustriesbeingdisruptedbynewinnovativeproducts,newwaysofsellingorpricingexistingproductsorservices,entirelynewbusinessmodels,orsomecombinationofalloftheabove.Andthenofcoursetherearestillthemoretraditionaldisruptivefactorslikeexpansionandgrowth,organizationalrestructuringandregulatorychanges,justtonameafew.

Allthisdisruptioncanhaveacascadingimpactonbusinessapplicationrequirements,makingagility-theabilitytoeasilyinnovate,evolveandchange-evenmoreimportantthancurrentfunctionality.Howwellpreparedareyoufortheunpredictable,yetinevitabledisruptiveforcesofthedigitaleconomy?Afterall,weliveinverydisruptivetimes.

DISRUPTION?WHATDISRUPTION?

Weaskedsurveyparticipantsinour2018MintJutrasEnterpriseSolutionStudytoestimatethelevelofrisktheyfaceintheirindustry(andthereforetheirbusiness)beingdisrupted(Figure1).

Figure1:Howmuchriskdoyoufaceinyourindustrybeingdisrupted?

Source: Mint Jutras 2018 Enterprise Solution Study

Data Source InthisreportMintJutrasreferencesdatacollectedfromits2017and2018(andprior)EnterpriseSolutionStudies.Foryearsthisannualstudyhasinvestigatedperceptions,goals,challengesandstatusofsoftwareusedtorunabusiness,aswellastheimpactofthesesolutionsontheenterprise.

Eachstudycollectedresponsesfromover400participantsfromcompaniesofallsizesfromverysmalltoverylarge,representingawiderangeofindustries.

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Whileonly7%feltthatriskwashighand/orimminent,most(90%)dounderstandtheriskisreal.Whilemorethanhalf(51%)feelstheriskislowornonexistent,wehavetoask:HowdoyouthinkthetaxiindustrymighthaveansweredthisquestionontheeveofthelaunchofUber?DoyouthinkthehotelindustryanticipatedAirbnb?DidBlockBusterforeseethedevastatingimpactNetflixwouldhaveonitsbusiness?Whatkindofdisruptionislurkingoutthereforyou?

DIGITALDISRUPTIONTheInternetandthedigitaleconomymadeallofthesedisruptionspossibleandnoneweredecadesinthemaking.Comparedtoslow,evolutionarychangesofthepast,theyliterallyhappenedalmostovernight.

Thistypeofdisruptionmightcomefromavarietyofsources.Weaskedsurveyparticipantstoselectthesinglemostlikelycauseofpotentialdisruption(Figure2).

Figure2:Whatismostlikelytocausethisdisruption?

Source: Mint Jutras 2018 Enterprise Solution Study

Whilethethreatfromnew,innovativeproductsmayhavethelesserdisruptiveimpactonbusinessprocessesandbusinessmodels,itdoesrequirecompaniestoplacemoreemphasisoninnovation.Windowsofopportunitycanopenandcloseveryquickly.OfcourseanagileERPsolutionisn’tallyouneedtoacceleratenewproductintroductions,butyoualsodon’twantittobethereasonyoucan’trespondtonewmarketdemandsortakeadvantageofnewandunprecedentedopportunities.

Newwaysofselling/pricingexistingproductsmightincludesubscriptionstoservicesoroutcomesthatreplaceoutrightsaleofproducts.Ratherthansellingamachine,youmightinvoiceforuptimeorhoursofproduction.Youmightshipaphysicalproductforfreeandchargeforusageand/orconsumables.Softwarecompaniesthatusedtoofferperpetuallicensesmightnowalso(orinstead)offersubscriptionstosoftwareasaservice(SaaS).Andsoftwareismoreandmoreoftendeliveredasacomponentofproductofferingstoday.Thesetypesofchangescanhaveamajorimpactonhowyouinvoice,

HowdoyouthinkthetaxiindustrymighthaveassessedthethreatofdisruptionontheeveofthelaunchofUber?DoyouthinkthehotelindustryanticipatedAirbnb?DidBlockBusterforeseethedevastatingimpactNetflixwouldhaveonitsbusiness?Whatkindofdisruptionislurkingoutthereforyou?

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recognizerevenueandmanagecash.AndthesechangesmustbereflectedinyourERPsolution.

Theimpactofentirelynewbusinessmodelsisevenhardertopredictbecauseoftheinherent“newness.”Youdon’twantyourERPsolutiontobethereasonyoucan’tcapitalizeonthatbrilliantnewideathatcancreateanewrevenuestream.YourERPmustadaptasyourbusinessevolves.

AndwhataboutnewtechnologieslikeBlockchainorembeddedsensorsthatmakeproducts“smart?”Thesetechnologiescanhavearippleeffect,subsequentlychangingorcreatingnewbusinessmodels.

Andtheoptionmostlikelytobeselected-28%ofoursurveyparticipantsexpectchangetocomefromacombinationofthesedisruptivefactors,whichisevenhardertopredict.Youmustcontinuetosupportyourcurrentrevenuestreamsinconjunctionwiththesenewopportunities.

DON’TFORGETTHEMORETRADITIONALDISRUPTIONDisruptionisnotentirelyneworexclusivelytheresultofthedigitaleconomy.Growthandregulatorychangesareperhapsthetwomostcommoncatalysts.Howeverwhilenotexclusivelytheresultthereof,growthisinfactimpactedbythedigitaleconomy.TheInternethasleveledtheplayingfieldforglobalization.Innovationandadvancedtechnology,combinedwiththeInternet,haveopeneddoorstoopportunitiesallaroundtheworld.Newconsumermiddleclasseshavesprungupincountriesthatwerehardlyindustrializedashortdecadeago,creatingunprecedentedgrowthopportunities.Butwindowsofopportunitycancloseasquicklyastheyopen.

Totakeadvantageoftheseopportunities,youmightexpandintonewterritorieseitherorganicallyorthroughmergersandacquisition,bothofwhichcancausedisruptionthroughouttheenterpriseandplacenewrequirementsonfinance,accountingandcompliancereporting.Thismayalsoresultinorganizationalrestructuring.Ifyourorganizationalandreportingstructureisstillhardcodedintoyourchartofaccounts,youareseverelylimitedinhowandhowquicklyyoucanrestructure.

WhetherchangeisinitiatedbygrowthorbythefactorsshowninFigure2,theseinturn(orindependently)cancausechangestoaccountingmethodsandreportingrequirements.Achangeinaccountingmethodmightbemadeatthediscretionofexecutivemanagement,butmoreoftenisimposeduponanenterprisethroughnewlawssuchasthoseintroducedin2002withtheSarbanes-OxleyActandtheconvergenceofstandardsandreportingrequirementsofInternationalFinancialReportingStandards(IFRS)andUSGeneralAcceptedAccountingPrinciples(GAAP).

Aperfectexampleofregulatorychangesthatcanbedisruptiveisthechangetorevenuerecognitionasaresultofthemergingofaccountingstandards(ASCandIFRS).TheseplaceadditionalfunctionalrequirementsonERP,requiring

ASC 606 and IFRS 15 InMay2014,FASBissuedAccountingStandardsUpdate(ASU)2014-9,RevenuefromContractswithCustomers(Topic606).AtthesametimetheInternationalAccountingStandardsBoard(IASB)alsoissuedInternationalFinancialReportingStandards(IFRS)15,RevenuefromContractswithCustomers.Indoingso,thesetwogoverningbodieslargelyachievedconvergence.Theseconvergedstandardsforrevenuerecognitionwentintoeffectthebeginningof2018forpublicentities,bringingverysignificantchangestofinancialstatementsandreportingforanycompanydoingbusinessundercustomercontracts.

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changestoinstalledaccountingsoftwarethatarenotinsignificant.Dependingonyourbusiness,thesenewruleshavethepotentialofcreatingthemostsignificantchangesaccountantshavefacedinmany,manyyearsandapplytoanycompanythatentersintocontractswithcustomerstotransfergoodsorservicesorforthetransferofnonfinancialassets.Withthetrendtowardsasubscriptioneconomy,therearefewerandfewercompaniesthatareimmune.

THEBUSINESSCASEFORCONTINUOUSIMPROVEMENT

Giventheacceleratingpaceofchangeandtheunprecedentedpotentialforbusinessdisruption,itshouldbeeasytojustifyabusinessstrategythatembracescontinuousimprovement.Withtheadventof“leanmanufacturing”andSixSigma,manufacturersinparticularhaveadoptedcontinuousimprovementinmanufacturingprocessesforsometimenow.Byproactivelytakingthesameapproachtothesoftwarethatrunsyourbusiness,youpositionyourselftoweatherthestormofdisruption.YetthisapproachisrareinERPimplementations.

AnERPimplementationshouldbefocusedonoutcomes:growth,profits,andefficiencies.Butitissoeasyfortheevaluation,implementationandongoingoperationofERPtobesubsumedbythefeaturesneededtomeettheobjectivesofthebusinessataspecificmomentintime.Thosefeaturesbecometheprimaryobjectiveandtheconnectiontothebusinessstrategygetsblurredorforgotten.

Maybeyoustartoutwiththeobjectiveofreducingproductioncosts.Youmighthavededicatedproductionfacilitiestooptimizelabor,machineandinventorycosts.Youselectasolutionandimplementthefeaturesthatprovideasolidfoundationforthisapproach.Whathappenswhencustomerresponseandlead-timesbecometheprimaryobjectivesinstead?Asoundbusinessstrategymightbetomoveproductionclosertocustomers,whohappentobelocatedaroundtheglobe.Butifthefoundationyoucreatedwaspouredinconcrete,itwillbedifficult,ifnotimpossibletochangeitwithoutdestroyingit.WillitmeanrippingoutyourERPsolutionandreplacingitonlytofacethepossibilityofanotherchangeinstrategyonceimplemented?

Whathappenswhenyouintroduceentirelynewbusinessmodels?

DREADEDBUTINEVITABLECUSTOMIZATION

Companiescannolongeraffordtorespondtothesetypesofchallengesliketheyusedto.Indaysgoneby,companieswereforcedtohandlethiskindofchangeinthesamewaytheyhadalwayshandledgapsinfunctionality:throughcustomizationofthesoftware.Inthepastcustomizationwasinvasive;itmeantmuckingaroundinsourcecode.Notonlywasthisacostly,lengthy

AnERPimplementationshouldbefocusedonoutcomes:growth,profits,andefficiencies.Butitissoeasyfortheevaluation,implementationandongoingoperationofERPtobesubsumedbythefeaturesneededtomeettheobjectivesofthebusinessataspecificmomentintime.

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andtime-consumingprocess,italsocreatedbarrierstoupgrades.Itwastheequivalentofpouringthatcement.

Butinnovationisfarmoreimportanttodaythanithaseverbeen.Businessconditions,processesandevenentirebusinessmodelsaremuchmorefluidthaneverbefore.Nocompanycanaffordtostagnate,norcantheyaffordlongleadtimestoimplementchange.

Thisisexactlywhymodern-dayERPsolutionshavebecomemuchmoreconfigurable,allowingyoutopersonalizeandtailorthesolutiontoyourindividualneedswithoutcostlyandinvasivecustomization.Weaskedour2017EnterpriseSolutionStudyparticipantstocheckoffallthedifferenttypesof“customization”theybelievedtheyneeded(Figure3).Keepinmindthatmostanychangetothesoftwareortheuserexperienceistypicallyreferredtoas“customization.”

Therearetendifferenttypesof“customization”listedinFigure3.Theyaresortedbythelikelihoodofthembeingrequired.AnymodernERPworthitssaltshoulddeliversevenoutofthefirsteightofthese(changingdatamodelsistheexception)withoutrequiringanyinvasivecodechangesandwithoutbuildingbarrierstoconsuminginnovation.

Figure3:Whattypeofcustomizationdoyoubelieveyouneed?

Source: Mint Jutras 2017 Enterprise Solution Study

Ifyourcurrentsolutiondoesnotallowyouto“customize”throughthistypeofconfigurationandtailoring,if“customizing”preventsyoufromconsuminginnovation,adaptingtobusinesschangeorrespondingtonewbusinessornewbusinessmodels,youneedanewone.It’sassimpleasthat.Andwhenyousearchforanewsolution,youshouldnotbethinkingofonethatwilllastfive

Nocompanycanaffordtostagnate,norcantheyaffordlongleadtimestoimplementchange.

“Customization” Manymodern,technology-enabledERPsolutionstodaydeliverahighlevelofpersonalizationandconfigurationwithoutcustomizationasdefinedintheclassicsenseofinvasivecodechanges.

Ifyourcurrentsolutiondoesnotallowyoutorespondtonewbusinessornewbusinessmodels,youneedanewone.

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toeightyears.Therightsolutionshouldnotonlyevolve,butalsoeasilyadapttochangingbusinessneeds.Lookforasolutionforlife.

Addingorchangingdatamodelsorthestructureofthosemodelsislessuniversallyavailable,butwiththerightkindofmodernarchitecture,iscertainlydo-able.

Thelasttwomayormaynotrequirecodechanges.Customlogicmayverywellbeaccommodatedthroughapplyingbusinessrulesthatcanbesetandmaintainedbybusinessusersresponsibleforcreatingandenforcingthoserules,withnoprogrammingorothertechnicalskillsrequired.Theaddedbenefitistheabilitytoeasilychangetherulesasneeded.

Ofcoursethelastone(developingnewfeaturesandfunctions)issimilartowhatwehavebeendiscussing.Thesearetraditionallyviewedasgapsinthesoftware.Butbeforeyoufillthosegapswitheitherinvasivecodechangesor(preferably)addedcomponents,considerthesequestions:

• Isthisfunctionalitygenerallyavailable,justnotinyourERP?Ifso,perhapsyouneedasolutionthatisabetterfit?

• Ifthisisnotgenerallyavailableincommercialsoftware,doyoureallyneedit?Doesitdifferentiateyouinyourmarket?Toooftenthese“customizations”seemnecessaryonlybecausethisisthewaythingshavealwaysbeendone.Butmaybetheyweredonethatwaybecauseoflimitationsimposedbyoutdatedtechnologyandlegacysoftware,oraskilldeficiencyinanemployeethathassinceretired.

Ifyoudoindeed(really)requirethis,anditwillclearlydifferentiateyouinyourmarket,howyougoaboutaddingthatfunctionalitycanleadyoudownapathofstagnation,orapathtogrowthandprosperity.Itshouldbebotheasytoaddandeasytoconsume.

INNOVATIONTHATISEASYTOCONSUME

AddingnewfunctionalitytoERPinawaythatmakesiteasytoconsumehaslongbeenachallenge.TheverydefinitionofERP(atleastthedefinitionaccordingtoMintJutras)contributestothischallenge.MintJutrasdefinesERPasanintegratedsuiteofmodulesthatformstheoperationalandtransactionalsystemofrecordofabusiness.ThisisarudimentarydefinitionbecausetodayERPislikelytodomuchmorethanthis.

NotonlydoallmodulesofanERPsolutionshareacommondatabase,butalsoallaredevelopedusingthesametoolsandtechnology(platform)andtraditionallytheyallmoveforwardinlockstep.Thiseliminatesdataredundancyandanyneedforseparateintegrationefforts.Andacommonplatformfordevelopmentisbeneficialtoboththecustomerandthevendor.

Definition of ERP MintJutrasdefinesERPasanintegratedsuiteofmodulesthatformstheoperationalandtransactionalsystemofrecordofthebusiness.Thisdefinitionallowsforsomeflexibilityintermsofmodulesrequiredsincedifferenttypesofbusinesshavedifferentneedsandtypicallymanufacturerswillrequireamorecomprehensivesetofmodules.Inaddition,thefootprintofmostestablishedERPsolutionshasgrownsignificantlyandprovidesmorefunctionalitythanneededforthiscoresystemofrecord,oftenmakingupgradesharderandmorecomplex.

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WhennewfeaturesandfunctionsareaddedtoERP,eitherasgenerallyavailableinnovationorasacustomization,thistightintegrationimpliesthatallmodules,allfunctions,andthereforealldepartmentswithinanorganizationmustmoveforwardtogether.Thiscanslowdowntheupgradecycle(orinthecaseofcustomization,preventit).Butevenmoretroublesome:Ittakesmassiveeffortsofcoordinationforalldepartmentswithinacustomer’sorganizationtotakethosenextstepsalltogether.Andallmightnothavethesamelevelofmotivation.

Sowhat’sthealternativetothistightintegration?Thealternativeisoftenreferredtothesedaysas“looselycoupled,”butthatterminologyfrequentlyconjuresupthe“bestofbreed”approachofyesterday,whereyouhadindependentpointsolutionsthatneededtobeinterfacedorintegratedbackintoERP.We’renotadvocatingtakingastepbackwards.Perhapsabetterwayofdescribingtheneweralternativewouldbe“component-based”or“service-based.”

Whenitcomestimetoofferupnewfeaturesandfunctions,insteadofinsertinglinesofcodedirectlyintoERP,youmightinsteadcalluponastandard“service.”Whenitcomestimetoupgradeoraddnewfunctionality,simplyswapouttheold“service”forthenew.Youmightalsoviewtheseservicesasexternalcomponents.Whilethisisanoversimplification,itconceptuallydescribeshownextgenerationERPcaneffectivelydelivernew,targetedinnovationwithoutforcingalldepartmentsservedbyERPtomarchforwardtogether.

Whilecomponentsandservicesarebecomingmoreprevalent,solutionprovidershavetakenawidevarietyofdifferentapproachestodeliveringinnovationtoday.Manyarestillpackagingupreleasesthatrequireanall-inclusiveupgrade.Butthatdoesn’tmeanyouhavetotakethisapproachinaddingonnewfunctionalitythatyoueitherdevelopyourself,commissiontohavebuilt,orbuyfromathirdparty(typicallyapartnerofyourERPsolutionprovider).Anythingyoucandotomoveawayfrommanagingasingle,massivemonolithicstructureisastepintherightdirection.

CLOUDANDSAASOPTIONS

Nodiscussionofinnovationandcustomizationwouldbecompletetodaywithoutaddressingtheshiftinmovementtocloudcomputingingeneralandsoftwareasaservice(SaaS)inparticular.WhileMintJutrasbelievesthetransitiontoSaaSERPwilltakeyears,thisislargelybecauseofthesheerdominanceofon-premisesolutionsand(historically)thereluctancetoripandreplacesystems.

Wehavebeenaskingthefollowinghypotheticalquestionforyearsnow:Ifyouweretoselectasolutiontoday,whichdeploymentoptionswouldyouconsider?

Anythingyoucandotomoveawayfrommanagingasingle,massivemonolithicstructureisastepintherightdirection.

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WehavewatchedthepercentagethatwouldevenconsideraSaaSsolutiongrowfromsingledigits(10+yearsago)tooverhalf.Figure4alsoshowsSaaSasthedeploymentoptionmostlikelytobeconsideredforthepastthreeyears.

Figure4:Whichdeploymentoptionswouldyouconsider?

Source: Mint Jutras Enterprise Solution Studies

* Option was added in 2015

Therearetwopointstoconsiderhere.Firstofall,youcan’tbeagileifyouarestuckonoutdatedreleasesandnotabletoinnovatetomeetthenewdemandsplacedonyourbusinesseitherbecauseofdigitaltransformationormoretraditionalbusinesschange.InaSaaSenvironmentyouarenotallowedtostagnate,butyouwillalsoberelievedofmuchoftheburdenoftheupgradeprocess.Ofcourseyouneedtoreviewnewfeaturesandfunctionsand“optin”tousingthem,buttheSaaSsolutionproviderdoesalltheheavylifting.Youcanspendyourtimeandenergymakingthosedecisions,respondingtochangeandrunningyourbusiness.

But(secondly)whataboutthepossibilitythatyouwillneedtofillsomegapsinthesoftwareordifferentiateyourself?Inotherwords,whataboutarealneedforcustomization,ratherthanconfigurability?Ifyouarerunninginaprivatecloudorjustahostedenvironment,thesituationisnotverydifferentfromanon-premiseenvironment,exceptperhapsthatyoupayathirdpartyforthecareandfeedingofyoursolution.Butthenyoudon’tgetallthebenefitsofaSaaSsolutioneither,includingthepotentialformoreandmorefrequentupdates.

WhiledifferentSaaSsolutionprovidershandlecustomizationsindifferentways,invasivecustomizationofcodeisdiscouraged,ifallowedatall.Hereiswheretheabilitytoexternalizethecustomizationandplugitinasaserviceissoimportant.YoucanleaveyourSaaSsolutionessentiallyuntouchedandsimplyplugyourcustomizationin.Whileadmittedlyweareoversimplifying,yougetthepicture.

Cloud versus SaaS

Cloudreferstoaccesstocomputing,software,storageofdataoveranetwork(generallytheInternet.)Youmaypurchasealicenseforthesoftwareandinstallitonyourowncomputersorthoseownedandmanagedbyanothercompany,butyouraccessisthroughtheInternetandthereforethroughthe“cloud,”whetherprivateorpublic.

SaaSisexactlywhatisimpliedbywhattheacronymstandsfor:SoftwareasaService.Softwareisdeliveredonlyasaservice.ItisnotdeliveredonaCDorothermediatobeloadedonyourown(oranother’s)computer.ItisaccessedovertheInternetandisgenerallypaidforonasubscriptionbasis.

Usingthesedefinitions,wecanconfidentlysayallSaaSiscloudcomputing,butnotallcloudcomputingisSaaS.

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KEYTAKEAWAYSANDRECOMMENDATIONS

ManyoftheERPsolutionsinstalledtodayremainrigidandrequireextensivemodificationstomeetthechangingneedsofenterprisestoday.Isyoursoneofthem?Didyouoriginallysetouttosupportyourbusinessobjectives,butgotside-trackedinbecominglaser-focusedonthefeaturesneededtomeetthoseobjectivesatasinglepointintime?Didyoulayafoundationthatnowneedstochangeinshapeorsize?Isthatfoundationcastinconcrete?

WhilemostconsumersofERPwillinitiallyselectasolutionthatisthe“bestfit,”alltoooftentheylosesightofthefactthattheirrequirementschangeovertime.ManyoftheERPsolutionsinstalledtodayremainrigidandrequireextensivemodificationstomeetthechangingneedsofenterprisestoday.

Andthepaceofchangedoesnotappeartoslowingdown.Eventraditionaltypesofbusinesschangeresultingfromgrowth,expansion,organizationalrestructuring,and/orregulatorychangesareacceleratingalongwiththepaceofbusinessitself.Addtothatthethreatofdisruptionmadepossiblebythedigitaleconomyandastagnantsolutionmayjustputyouaheadintheracetothebottom.

RECOMMENDATION:Don’tletchangebeyourenemy.Makeyourabilitytomanagechangeacompetitivedifferentiator.Considerthefollowing:

• Ifyourcurrentsolutionisrigidandmonolithic,movingforwardatasnail’space…youneedanewone.

• Ifyourcurrentsolutionisnotsupportedbyaplatformorarchitecturethatallowsyoutoeasilyconnectnewservicesorcomponents…youneedanewone.

• Ifyourcurrentsolutiondoesnotallowyouto“customize”throughconfigurationandtailoring,if“customizing”preventsyoufromconsuminginnovation,adaptingtobusinesschangeorrespondingtonewbusinessornewbusinessmodels…youneedanewone.

Ifyoudoindeedfindyourselfinneedofanewsolution,youstillneedtoconsiderfeaturesandfunctionsthatgiveyouthebestfittoday.Butdon’tstopthereinyourevaluation.Acknowledgethefactthatweliveindisruptivetimesandseriouslytakeintoconsiderationtheagilityofanynewsolution.Agilityprovidesyouwiththeabilitytoinnovate,evolveandchangeinordertotakefulladvantageofnewbusinessopportunities.Youmaynotbeabletoaccuratelypredictwhatthefutureholds,butwithanagilesolution,youcanbereadyforanything.

ManyoftheERPsolutionsinstalledtodayremainrigidandrequireextensivemodificationstomeetthechangingneedsofenterprisestoday.Isyoursoneofthem?

Agilityprovidesyouwiththeabilitytoinnovate,evolveandchangeinordertotakefulladvantageofnewbusinessopportunities.

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Abouttheauthor:CindyJutrasisawidelyrecognizedexpertinanalyzingtheimpactofenterpriseapplicationsonbusinessperformance.Utilizingover40yearsofcorporateexperienceandspecificexpertiseinmanufacturing,supplychain,customerserviceandbusinessperformancemanagement,Cindyhasspentthepast12yearsbenchmarkingtheperformanceofsoftwaresolutionsinthecontextofthebusinessbenefitsoftechnology.In2011CindyfoundedMintJutras(www.mintjutras.com),specializinginanalyzingandcommunicatingthebusinessvalueenterpriseapplicationsbringtotheenterprise.