IS DIGITAL TRANSFORMATION KILLING ERP?

There’s been lots of talk of Digital Transformation lately and questions about whether ERP or Business Transformation is right for your business.  It’s impossible to deny the impact of digital technologies on the speed of innovation.  As businesses adopt digital technology and become digital enterprises, do they really need ERP?  It’s an interesting debate and a question that warrants further examination.

What Is Digital Transformation?

There isn’t a clear definition of digital transformation because it is a broad term that covers every aspect of changing technology in business.  Wikipedia defines it as a transformation or “change associated with the application of digital technology.”  In the business world, the term is often associated with companies striving to keep up with changing business environments brought about by customer demand and technological innovation by transforming its core business processes using digital technology.  Digital innovations change how people interact with each other, in turn, how they interact with businesses.  Organizations need to determine the intensity with which they wish to adopt digital technologies.

In our blog post, “How to Embrace Disruptive Innovation” we discussed the importance of creating a company culture that is comfortable with innovation.  Digital transformation means embracing digital disruptive technologies, fully embracing the cultural changes to digital technologies and leveraging them for your business.  It is a strategy for change and a cultural mindset to embrace that change, yet the end state of digital transformation is essentially a moving target.  A “digital enterprise” evolves with the ever-increasing speed at which technology changes society and business.  This means that digital transformation is an ongoing evolution, a continued organic growth that must adapt to changes as they happen.

Digital Transformation Or ERP?

This is a false choice.  When authors post articles titled, “RIP ERP” or something similar, they are referring to the ERP of the past i.e. accounting software packages and monolithic, customized software.  In many ways, Digital Transformation requires an adaptable platform or system of record like modern ERP or what Gartner refers to as Post-Modern ERP.  These modern ERP platforms embrace digital disruption through agility, mobility, customization, real-time visibility, adaptability, and by embracing the multi-cloud world to increase functionality.

So, is Digital Transformation killing ERP? No, at least not modern ERP solutions that are adaptable enough to embrace disruptive innovation and technologies.  Digital Transformation is not primarily focused on implementing IT solutions, it is an overarching cultural change within an organization.  However, in order to complete the digital transformation, new solutions must be adopted, and old solutions will need to be adapted.  In order to stay relevant, ERP vendors have had to undergo their own digital transformation.  The result is a new breed of modern ERP platforms that can function as a digital system of record, from which users can set themselves up for success on their very own digital transformations.

Free eBook - Future-Proof your business with Postmodern ERP

Learn more about our modern ERP solutions and Contact us to start your Digital Transformation today!


Solutions by Industry

What's New

Private versus Public Cloud

The term “cloud” has become common in the ERP world. Migration or moving to the cloud is becoming more popular as technology evolves. While your data can be moved to the cloud, there are different ways that data can be stored: public or private. Below are the differences between public and private cloud hosting environments. Read More

Submitted by Ally Donahue on Fri, 04/02/21 - 1:46

Your Brain on ERP

Just as your body needs your brain and central nervous system, your business needs an integrated ERP system. Read More

Submitted by Ally Donahue on Fri, 03/26/21 - 1:40

Benefits of Ongoing Staff Software Training

After ERP implementation, employees who will use the technology are trained on how to use the new software. However, software systems are constantly improving and updating which can cause employees confusion while working in the system. By hosting ongoing staff software training, your staff will feel confident and prepared to do their job effectively and be well versed in the updated technology.  Read More

Submitted by Ally Donahue on Fri, 03/19/21 - 1:44

Whatever Your ERP Needs, We Have the Solution!

Or call us for a free consultation 866-379-3799