Companies seldom focus on the added value that can be realised through innovations, such as Cloud and In-Memory Technology. This was confirmed by the findings of the recent KPMG survey regarding how SAP users regard ERP software innovations.
Of the companies surveyed, 50 % mentioned that they have no plans to increase their innovation capabilities in the coming years to enable faster and more efficient implementation of new innovations.
Disruptive technologies, such as Mobile, Data Analytics & In-Memory Computing, Cloud and to a lesser extent the integration of social media into ERP systems, are definitely perceived as relevant for driving business transformation, however, only a small number of companies have a clear vision for the implementation of these innovations.
The survey shows that the investments that companies put into their ERP landscapes in the coming years will mainly be focused on achieving the maximum profit from their existing applications. One possible explanation is that for many companies it is a great challenge to introduce new technology into a large-scale and complex ERP environment, and therefore they are reluctant to engage in the process.
For many companies the value of IT in general, and ofERP in particular, will be determined by the timing and effective adoption of the new innovations. ERP that traditionally supported back-office processes are now being extended to support the front-office and client-facing pro-cesses.
Furthermore, the business models of organisations and the manner in which organisations approach their customers and consumers are also changing faster than at any time in the past and the chosen ERP system also has to be ‘sustainable’ to form a solid foundation for the coming decades.
Our advice to organisations is to focus on reducing the complexity of their current ERP environments, which will reduce the costs of the ERP operation and allow room for innovation and the integration of new technologies based on a solid ERP plan. If properly applied, the value of ERP for organisations will only continue to increase.
Download the KPMG survey "SAP Value - A balancing act" here
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