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Oakton: Most organisations have dug themselves an ERP hole, according to survey

Mike Gee | Sept. 2, 2014
Reveals future of ERP delivery in Australia

While running costs were a factor, it was not a strong signal. An indicator that there was poor separation of commodity ERP services that must be driven by cost and the business customisations that are driven by value with:

  • 30 per cent of organisations say Total Cost of Ownership (TCO) is the most important driver in selecting an ERP solution.
  • 35 per cent of organisations cite reducing cost, complexity and capital investment as key drivers to upgrade or replace their ERP.

Respondents recognised the need for innovation and responsiveness with an equal split between building more customisations and adopting new digital and mobile interfaces as the likely response:

  • 34 per cent of organisations believe greater customisation is the right way to get more value from their ERP solution.
  • 30 per cent of organisations would extend ERP to mobile and tablet devices when considering how to make their current ERP more agile.

"Organisations that have invested heavily in standardisation of their back office functions and appification of front office are realising significant improvement in their bottom line. Recent profit announcements from leading Australian organisations is evidence of the same. Alternative is to lose your competitive advantage to faster and more nimble startup and go out of business," Sethu said.

 

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