Key Challenges Companies Face with ERP Solutions
In February, 2010 Forrester Research published a survey (Paul D. Hamerman: “Enterprise Apps Customers Have Issues”) that outlines the key challenges that enterprise companies face with their ERP solutions when trying to meet today’s business and IT challenges. The survey was done with business process and application professionals.
Not surprisingly, there are many similarities between the findings of this study and the key challenges and IT business trends we have discussed in previous articles. So let’s compare the top four challenges Forrester identified with Microsoft study findings:
- Finances
- Forrester found that 91 percent considered high cost of ownership as their primary challenge. Microsoft studies showed the need to reduce operational costs. Both studies show that finances are a huge deterrent.
- Business infrastructure
- Eighty percent told Forrester that mismatched applications were keeping them from realizing their business objectives. Microsoft found that organizations need business infrastructure support to align with their business objectives. Poor infrastructure is inhibiting rather than helping companies reach their goals. And finances and upgrade difficulty are keeping them from IT investments.
- Difficulty of upgrading
- Forrester found that 87 percent did not upgrade because they thought it would be too difficult. Microsoft showed organizations needed to reduce IT operational costs. So organizations avoid upgrades that would reduce IT costs and add flexibility for change.
- Poor cross-functional processes
- Eighty-six percent told Forrester that they had systems with poor cross-functional processes. So extending to external partners was out. As was collaboration using internal and external controls. On the other hand, Microsoft studies showed organizations were having difficulty getting partners to use their ERP software. With a first-rate ERP system, cross-functional processes, change, partner adoption, and collaboration would be much easier.
As you can see, the results Forrester surfaced with this study harmonize very closely with our own findings around the key business and IT challenges organizations face every day.
So what role is information technology playing in causing these issues?
For many organizations, the technology that’s still in use today originates from the 1980s. It’s complex and inflexible―unable to provide the power and agility businesses need to thrive, change, and grow. Let’s take a closer look at these systems.
- Application code and parameters are intertwined, tangled—like spaghetti. There’s no way to customize or integrate the software.
- Duplicated data structures complicate the task of focusing on what’s critical―extracting, transforming, and presenting accurate data in the most appropriate format to enable performance and ease of use for the user.
- Middleware and batch processes are often used as necessary workarounds to overcome the lack of integration and interoperability across implementations and business processes.
- Key work-related functionality sits in separate applications, so users have to access multiple programs to complete daily tasks. In addition when upgrading the systems, the customer has the challenge to solve the integration problem not the vendor.
- Business intelligence is an afterthought for many customers. They’ve continued doing business the way they’ve always done business, because despite the complex processes, they are still getting reasonable results. So the need for deeper insight into the business is not always an investment priority.
- The user experience is task-oriented, not role-tailored or process-oriented, and there is little or no opportunity to customize or optimize the user experience.
With this backdrop, it’s easy to understand many of the challenges we just discussed. Organizations are not set-up to cope with a changing economic climate and need new solutions to keep pace with current and future trends.
Organizations need new systems that will work for them–not against them! They need business applications to be an asset in the face of change. Not a liability. They need simplicity and agility without sacrificing power. Successful organizations need complete, packaged industry-specific solutions designed for their business needs. Not inflexible software that requires customizations. Organizations need powerful embedded analytics and business intelligence (BI). Not data overload.
These needs and more are met in Microsoft Dynamics AX 2012–by introducing a generation shift in the way we think about the ERP model. Read the Top Ten Reasons to Buy Microsoft Dynamics AX 2012!



