The Dbriefs Technology Executive series presents...September 1, 2011 Release for answers to polling...

The Dbriefs Technology Executive series presents:

The Death of ERP:

An Urban Legend Is

Dispelled

Bill Allison, Principal, Deloitte Consulting LLP

Nidal Haddad, Principal, Deloitte Consulting LLP

September 1, 2011

Release for answers to polling questions

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Historical perspective on ERP

Why are people still utilizing ERP?

What are current ERP delivery and business

innovations?

What future strategies should the CIO be asking

about?

Agenda

Historical perspective on ERP


What is the primary ERP solution within your enterprise?

a. Oracle

b. SAP

c. Other

d. Multiple

e. None

f. Don’t know / Not Applicable

Poll question #1


ERP has been called dead before

SAP

founded

1972

Lawson

founded

1975

Oracle

releases

EBS

1986

PeopleSoft

founded

1989

ERP

widespread

adoption

1990-1995

Windows95

released

1995

ERP

resurgence

for Y2K

1998-2001

RIP

ERP

RIP

ERP

US Dot.com

bubble burst

2001

ERP

resurgence

2003-2008

U.S. and

global

financial

crisis

2008

RIP

ERP

ERP

resurgence

2010-

Popularity and adoption of ERP (Enterprise Resource Planning) is directly

related to the economic cycle and the introduction of seemingly disruptive

technologies


• Very wide functional

footprint

• Advanced instances

• Global and

accelerated

deployments

• Big bang and phased

• Rise of analytics

• Beginnings of mobile

• Web integration

• Global and offshore

delivery

• Bigger scopes

• Accelerated timelines

• Global deployments

• Phased go-lives

• Some desktop

reporting

• Batch processing

• Mainframe and client

server

• More end users

• More sophisticated

ERP clients and

integrators

• Single instance

• Narrow functionality

• Complicated

deployments

• Big bang

• Offline reporting

• Batch processing

• Mainframe

• Limited end users

• Everyone learning

how to do ERP

How ERP has changedERP has moved from narrow functionality and extended time-to-benefit to

much larger and ever-expanding functionality and clearly compelling

business cases

Early ERP 1980’s Evolved ERP 1990’s Table Stakes ERP 2000’s

Why are people still utilizing ERP?


ERP needs are timelessAs business have grown more complex and more global, the demands

continue to grow, but at their core remain the same

Data

Information

Business

Intelligence

and

Analytics

Wisdom


What percentage of your ERP system’s capabilities is your

organization currently leveraging?

a) Less than 25%

b) More than 25% but less than 50%

c) More than 50% but less than 75%

d) More than 75% but less than 100%

e) 100%

f) Don’t know/Not applicable

Poll question #2


ERP's compelling potentialAs technological change and vendor consolidation have driven down

costs, ERP is still the main connection to results-driven business systems

in the enterprise

Clearer

Benefit

Case

Lower

Unit

Costs

High Integrity

Data Master

Faster

Time

To

Value

ERP is where

the data lives

and is related

to business

results

ERP

implementations

and

maintenance

are more

efficient and

lower cost

The price of

ERP and

technology

continues to

fall

Benefits are

clearer to see

and accepted

as a cost-

reduction

driver


ERP is a response and an enablerExternal and internal factors are driving companies to embrace ERP as

both a platform for internal improvement and a competitive responses to

outside activities

ERP

Internal Improvement

Cost containment

Internal controls

Reporting

External Factors

Regulation

Software vendor consolidation

Merger and acquisition activity

Technology Drivers

Mobile users

Legacy solution costs

Hosting offerings

What are current ERP delivery and business innovations?


How is your ERP system currently delivered?

a) Traditional ‘own and operate’

b) Traditional outsourced

c) SaaS (Software as a Service) technology

d) Mixed

e) Don’t know/Not applicable

Poll question #3


Software vendor consolidation to acquire new features

• Faster time-to-market with specific functions

• Longer time to a fully integrated product family

Software vendors offer more services for clients

• Hosting offerings

• Application management offerings

Vendors have continued to innovate to ease implementation and adoption

to focus on the overall ownership experience

ERP is delivered differently in 2011

Software vendors will continue to increase margins on license

maintenance, encouraging them to improve the ongoing customer

experience and protect their revenue stream


Desktop computing power has increased dramatically

• More power for more complex reporting

• Distributed and smart analytics that can be automated

New devices and access points

• Heightened demand for access to data

• Virtual and hosted data stores

• New security and controls embedded

Mobile and cloud offerings are expanding the limits of the enterprise

further and further out into the business processes

Technology is pulling ERP along

What future strategies should the CIO be asking about?


Through which of the following do you expect to gain the

most value from your next ERP investment?

a) Through upgrades and technology improvements

b) Through automation of additional process areas such as customer

management or supply chain management

c) Through emerging technologies such as mobility, analytics and/or

social media/social business

d) Other

e) None of the above

f) Don’t know / Not applicable

Polling Question #4


More and More Analytics

• Out-of-the-box analytics with a heavy focus on results

• Increased demand by users and continued data model

development by the vendors

Faster and more complex implementations

• Global rollouts will continue to be popular

More choices for implementation and

operation

• SaaS (Software as a Service)

• Subscriptions

• Niche players and unconventional alliances

Everything ERP is becoming faster, more mission critical and higher profile.

A good ERP system is now table stakes in the competitive landscape.

What should the CIO expect?


More complex integration

• Unstructured data interfaces – in both directions

• Continued increase in the choices to integrate more and

more applications

A different business case

• New items on the costs and savings lines

More moderate implementation options

• Risk-reducing implementation options

• Hybrid approaches to new technologies (cloud)

Everything ERP is becoming faster, more mission critical and higher profile.

A good ERP system is now table stakes in the competitive landscape

What should the ERP customer expect?

Question and Answer

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Bill Allison

Principal

Deloitte Consulting LLP

[email protected]

Nidal Haddad

Principal

Deloitte Consulting LLP

[email protected]

Contact info

mailto:[email protected]

mailto:[email protected]


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The Dbriefs Technology Executive series presents...September 1, 2011 Release for answers to polling...

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