I love the regular chuckles and chiding I get over my Gartner email signature tagline: “ERP is sexy!” As you might expect, I make this statement precisely to be provocative and to get a reaction. The truth of the matter is that I’m not kidding. Today’s market dynamics for ERPs – large financial and operations management application suites from companies like Acumatica , Infor, Microsoft, Oracle, QAD, SAP, Unit4 and Workday (alphabetical for obvious reasons) – is utterly fascinating and exciting. Why, you might ask? Let me tell you.
- ERP is essential. Organizations simply MUST HAVE a stable, efficient, digitial core to process orders, track fixed assets, report financials and account for cash. Organizations with efficient, resilient core processing are much freer to focus on differentiating and innovating technologies.
- ERP vendors are investing billions in their ERP software to do more than core systems of record, to lure new clients to buy and to persuade existing clients to upgrade. Vendor money is flowing into innovation for highly-secure, cloud delivery; machine learning as a feature of business applications; high-performance reporting and analytics; state-of the art user interfaces and autonomous support of Internet of Things.
- ERPs are big money. According to Gartner research, the ERP software market hit almost $30 billion in 2016. Our clients tell us that ERP maintenance, support and ongoing subscription fees can account for as much as 50% of their IT budget. Big money = big bets. Every CIO knows that a great ERP strategy can ignite your career, while a poorly conceived ERP can spell personal disaster.
Taken all together, these are amazing dynamics, and they are the reason why I am totally sincere when I say ERP is sexy.
I’m excited to start up my blog again, it’s been a long time! My Gartner ERP team members and I will be posting to this blog on a regular basis. I hope you’ll follow along because our goal is to make YOU successful with this significant, critical asset: your ERP.