We are entering a third era of enterprise IT

We are entering a third era of enterprise IT

IT Craftsmanship IT Industrialization Digitalization

Focus Technology Processes Business Models

Capabilities Programming, system_management IT management, service_management Digital leadership

Engagement _{internally and externally}Isolated, disengaged customers, unengagedTreat colleagues as with external customers

Treat colleagues as partners, engage external

customers

Outputs & outcomes _{innovation, frequent issues}Sporadic automation and _{efficiency & effectiveness}Services & solutions, Digital business innovation,_{new types of value}

Classicism

•

1980s to early 1990s

•

Classic “best of breed”

applications

•

Driven by market and

user immaturity

•

Happy users but

integration and analytics

nightmare

Modernism

•

Mid 1990s to mid 2000s

•

Megasuites rule, ERP takeover,

centralised IT

•

Driven by vendors, users

increasingly frustrated

•

Integration trumps

agility and fit to

requirements

Postmodernism

•

Late 2000s to today and beyond

•

Suite deconstructed, postmodern ERP emerges, megavendors not in control

•

Driven by the Nexus and user disillusionment, users taking back control

•

New integration, analytics and

Simplicity

Cost

saving

One

company

Rationalise IT

applications

Yesterday: ERP was supposed to solve all our problems…

and create value!!

Today: Monolithic ERP spiraling to irrelevance?

Go live

party!

Can we get functional changes?

Wait for the next upgrade.

Can I connect via my mobile device?

That's going to be difficult. We need you to support

a new business initiative—FAST!

You do realize this is complex?

Why is it so difficult just to create a basic

requisition? I want an app store app!

It isn't difficult. You got training.

We need budget for an upgrade.

Why is our ERP system so expensive to run, can we switch to something else? Our ERP is falling into dis-use,

I am buying Saas! We've just released a new business release.

Business leaders &

process owners

Business-driven

innovation

Casual

users

User experience

simplification

Information

users

Fact-based

business

Traditional

power users

Process

excellence

Who is disillusioned with ERP?

Most ERP implementations focus on the needs of transactional power users

Traditional

power users

Process

excellence

Information

users

Fact-based

business

Casual

users

User experience

simplification

Business leaders &

process owners

Business-driven

The Nexus of forces impacts ERP,

especially disillusioned users

Social

Mobile

Cloud

SAP in the cloud:

no longer a single product suite

Social people to people collaboration

Business network business to business collaboration

Managed cloud

SAP Business

suite on HEC BW onHEC

From SAP or partners People Customer Money

$

¥ €

Supplier Business

Cloud suite

Public cloud applications

_{SAP Hana}

Partner / ISV

Apps Hana CloudServices

• Database • Infrastructure • Platform

Oracle in the cloud:

no longer a single product suite

APPLICATIONS CLOUD

ERP

cloud

CX

cloud

HCW

cloud

Current technology trends represent

two complementary goals

Bi / Analytics 1 1 Infrastructure & data center 4 2

Mobile 5 3

ERP 2 4

Cloud 3 5

Networking, voice and data comms 6 6 Security 7 7 Digitalisation / Digital marketing 8 8 Industry specific applications 10 9 Customer relationship management 11 10 Legacy modernisation 9 11 Collaboration - 12

Innovation & growth 12

-Ranking based on how many CIOS cited each as a top-three new spending priority for 2014

Renovate

the core

Exploit

the new

The future looks increasingly cloudy

% of 2011 survey

respondents

% of 2014 survey

respondents

In 2011 and 2014, 23%

said ”never"

When will more than half of your business run on public* cloud

infrastructure + SaaS?

Postmodern ERP:

it’s no longer “one size fits all”

Other Fin. Services Govt. & Edcn. Comms. & Services Manufacturing

Already done so Within 3 years 3 to 5 years 5 to 10 years > 10 years Keep core ERP on premises Don't know

100% 0%

Public cloud is being deployed to plug the agility gap

Payback

Agility

50%

Main reason

22

MONTHS

25%

Have made

significant cloud

investments

SA: 50%

SA: 60%

SA: 10%

SA: 20%

The changing of the guard

the mega-vendors will no longer dominate

O

th

er

Which technology company has been the most

influential over the past 10 years?

Next

generation

information

capabilities

What does this all mean?

Within 5 years, hybrid ERP environments will be the norm?

Postmodern

ERP/Apps

More

diverse

partnerships

Hybrid Cloud

Postmodern ERP scenarios:

the “HOOF” model

Conventional Maverick Tactical Strategic

Flip model

(5 to 15 years, or never)

Hybrid reality

(now, next 5 years big shift)

On-premises monolith

(dominant state today)

Outsourced everything

Firstly . . .

Key postmodern ERP strategy drivers

Monday morning

•

Inventory any user-driven SaaS applications

that cross the ERP boundary

•

Discuss the impact of postmodern ERP with

your ERP leaders, application strategists and

enterprise architects

Next 90 days

•

Agree your target “HOOF” model

scenario

•

Review your ERP vendor’s roadmap and

identify how it is being impacted by

postmodern ERP

Next 12 months

•

Update your ERP strategy to accommodate

postmodern ERP

•

Revise roles and responsibilities in

ERP CoE to take account of

postmodern ERP

Recommended Gartner research

Develop a Strategic Road Map for Postmodern ERP in 2013 and Beyond

A Drobik, N Rayner (G00252735)

Predicts 2014: The Rise of the Postmodern ERP and Enterprise Applications

World

D Ganly et al (G00259076)

How to Develop an ERP Strategy

D Ganly, N Rayner, C Hardcastle (G00259897)

Best Practices for Managing Integration in a Hybrid Cloud and On-Premises ERP

World

N Rayner(G00251013)

Survey Analysis: Adoption of Cloud ERP, 2013 Through 2023

N Rayner (G00261104)

"IT sourcing strategies must be structured to enhance IT

agility and address the needs of digital businesses.

Organisations that don't adapt their strategies, and the

competencies required to execute them effectively,

will fail to achieve the value opportunities presented

by a highly digitalised future.”

"The reality is that you do have to operate at two speeds, and

some of that you do by creating dedicated teams for each.

Focusing on the big systems, making them run smooth, while at

the same time having disrupters to innovate, together with

marketing and the customer, exploiting digital."

Build capacity - bimodal IT offers a way to get unstuck

Traditional mode

Postmodern mode

Stuck in the middle ”fit for no one"

Agile dev. Small/ innovative partners Lightweight "Just good enough" governance Managed risk Multi-disciplinary teams

Postmodern ERP - When speed & innovation is needed, or there is a high degree of uncertainty Legacy ERP