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ERP MODERNIZATION: TURNING AN IT CHALLENGE INTO BUSINESS COMPETITIVENESS

4 minute read | 28 Mar 2022

Categories: Enterprise Integration, ERP Integration



BY BOOMI



It’s no secret that ERP systems were spawned in IT. Early inventory optimization
systems, logistics software, and supply chain management solutions may have been
about the back office, but it’s been IT that’s set the agenda, and that’s borne
the brunt of the cost.

However, the trend toward modernizing ERP systems — bringing them to the cloud,
simplifying their deployments, and making their scale more flexible — represents
an irrevocable shift from IT cost center to business competitive advantage.

Did you know that competitive functionality is the #1 reason companies are
upgrading their ERP systems?

Companies need business results from their ERP, and what does your ERP need to
drive those business objectives? It needs data.

For traditional ERP, the devil is in the data.

First, ERP solutions are limited in areas like machine learning and AI
analytics—critical technologies that can accelerate and simplify how to
identify, catalog, normalize, and centralize data. If you can’t find all your
data, it’s very difficult to gain any intelligence from the use of it.

Second, data optimization depends on reliable data connectivity throughout the
applications using the information. Data-centric actions such as data discovery,
data hub development, and process integration and orchestration are critical.

And third, the keystone for any successful ERP modernization will come down to
speed, and whether you can deploy automation within data usage to deliver
business outcomes more quickly.

At the end of 2020, more than half (56%) of businesses planned to have all their
ERP applications moved to the cloud at the end of 12 months. Only 18% had
managed to do it.

Among the thousands of Boomi customers undertaking ERP modernization projects,
we see five distinct approaches:

 1. Cloud-First Migration: Moving wholescale to a cloud environment. To do this
    successfully, you must intelligently connect and synchronize data in real
    time, leverage automation to gain visibility of cross-cloud processes, and
    speed integration across pure and hybrid cloud ecosystems.
 2. AI Analytics: Improve competitiveness by making better use of data insights.
    You need automated data collection and normalization, intelligent
    connectivity to drive real-time analytics across key business processes, and
    the flexibility to swap out for best-of-breed analytics technology as your
    business requires.
 3. Data Stewardship: To take control of content and data compliance, you must
    ensure no data is lost or compromised during the ERP migration process,
    centralize an intelligent master data set that includes dark data, and
    streamline and simplify enforcement of data policies.
 4. TCO and Improved Productivity: Lower costs and improve total cost of
    ownership by partial or entire replacement of legacy core ERP. To bring
    costs under control, you’ll need to take a holistic view of costs and
    control measures, improve how you measure efficiency and productivity, and
    be able to swap out sources of high costs or inefficiencies.
 5. Composable and Decomposable ERP: Increase agility, drive productivity, and
    improve efficiency with a composable ERP architecture. You’ll need to use
    intelligent connectivity and automation to shorten implementation times,
    compose ERP functionality based on business needs, and provide visibility
    into new composed processes and data.

When you take an intelligent, automated approach to data connectivity throughout
the ERP modernization process, companies can improve reporting and visibility,
gain operational efficiencies, and increase their competitiveness.

> Want to know how your company can reap the benefits of ERP modernization?
> Download our executive brief, “ERP Modernization: An App and Data Integration
> Story,” to learn more.

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