Why are large companies considering switching to new age ERPs ?, IT News, ET CIO
ERP solutions today are accelerating rapidly and also offering uniqueness through innovations brought by artificial intelligence, data analytics, user experience and automation. These changes benefit companies by giving them increased visibility and flexibility in terms of resources, and next-generation ERP solutions also help increase organizational efficiency.
During a panel discussion on building a future-ready business on a modern ERP, industry leaders shared their views on the biggest trends in modern ERP and how which it helps to shape the operations of the company.
Abhijit Katkar, Partner, Deloitte India believes that the definition of ERP deserves to be revisited today, stating: “In the digital age, the avatar in which organizations implement ERP and speak or mean ERP is very different from what it was before. So, I’m just going to share some trends from what I see from my perspective, advising and working with multiple clients across the world and industries.
Katkar believes that while the fundamental requirements, in terms of improving operational efficiency, providing data for decision-making, etc., remain the same, there is a fundamental change in the way that organizations extract value from ERP investments.
“In this context, I clearly want to talk about three or four mega-trends that I see, the first trend that I see is hyper-connectivity. So today we are building systems not just for our business, but for a larger ecosystem. When we talk about ERP today we mean enterprise ERP extended to our ecosystem partners and others and this is only possible because today’s ERP offers open architecture, APIs and endless connectivity possibilities using the world’s IoTs and OTs, ”he said,“ Today the idea is not to implement ERP just for the business, but essentially orchestrating a system design using multiple components or ERP solutions that support business needs. ”
The second trend Katkar mentioned is hyper-automation. He says that while in the past ERP was used to provide data or reporting requirements, today ERP is used to help the business meet its future needs by providing analytics.
The third trend observed in the ERP world is continuous improvement, he adds: “Today, the way modern ERPs are sort of freeing themselves is continuous improvement. There is an incremental but continuous update and functionality of functionalities, an enrichment of the ERP.
Speaking on the latest trend, he said, “The latest trend I want to talk about, which is very relevant in the cloud context in particular, may be related to external factors but there is a greater geographic location. of the regulations. What I mean by this is that there are regulations around privacy, data residency, and data ownership that are emerging and contrasting sharply with the concept of the cloud.
While there have been significant changes in modern ERP, it is important to see if it copes with the dynamic changes in the business environment. Ashish Desai, VP, IT & CIO, Aditya Birla Group thinks the answer to this question is twofold.
He thinks today’s ERP is more focused on the business aspects of the business, adding that “the futuristic demand of business is how can I leverage real-time data.”
“So the need for the business in the future is how can we get everything from ERP in real time? How can I use the data for real-time analysis? How to use this data to provide information in real time or use this data for hyper customer journey maps? How can we integrate OP systems with ERP that can help us improve productivity and at the same time analyze in real time, ”Desai said.
Dinesh Talniya, CIO, APL Apollo Tubes believes that at this time, ERPs should not be run on their own. “ERP, you will call it an autonomous system for the internal organization. While the organization nowadays has become a kind of integrated organization that consists of customers, suppliers, other stakeholders and ERP does not function as a common tool for all, ERP serves to maintain and running the business internet, that’s what ERP is from now on, ”said Talniya questioning whether the company’s current business priorities are up to the standards. technological stacks already present in the organization.
Jagdish Kumar, Group President and CFO, Anand Auto shared his thoughts on how ERP systems contribute to the financial transformation of the organization, stating: “As a user of the system, there are two aspects to ERP, one is very clear that ERP alone today is limited and the reason I say this is that over the years we have seen multiple implementations and as the world changes too quickly, LES in themselves are, to a certain extent, rigid and because of the rigidity, there is a way to go. As soon as you say you want things to be more flexible, then you see the cost of implementation soar.
The second aspect, according to Kumar, was the interfaces present. He elaborated on this point, stating that they are driven more broadly. “Things change so quickly in the real world, especially in India, given the saturated demands and stuff, sometimes it seems like the rigidity comes in the way it works. “