Increasing IT velocity while minimizing IT risks
This Panaya whitepaper explores methodologies and best practices for achieving IT agility for critical enterprise applications (ERP) in the era of digital transformation. It provides a unique perspective about how to increase IT velocity while minimizing IT risk and ensuring quality in a traditional IT environment.
What You Need for Agile ERP
Mati Cohen, Co-Founder & CTO, Panaya
Some might say that digital transformation is the latest buzzword word much like IT agility and Bimodal IT. And although it is a buzzword, that doesn’t devalue the importance of meeting these business models.
Businesses today face the risk of missing the boat, or standing idle on the sidelines with hopes pinned to great products, service, delivery, etc. But with all the “greats” in play, digital transformation must happen now because if not, even the greatest of greats will be surpassed by the latest innovation (e.g., Blockbuster to Netflix).
Systems of Differentiation as a competitive edge
According to a recent article on Forbes, IDC expects that the percentage of enterprises creating advanced digital transformation initiatives will more than double by 2020, from today’s 22% to almost 50%. For many companies, digital transformation is linked to the ERP systems that serve as the core of the business across the organization.
Companies must begin to define their ERP systems as more than just systems of record, but also to utilize them as systems of engagement or to take a step further, as systems of differentiation. Systems of differentiation are, according to Gartner, “applications that enable unique company process or industry specific capabilities.” Simplified, they are the systems that give your business a competitive edge.
What is agile ERP
As businesses take on digital transformation, ERP systems will need to be more agile in order to support the new requirements, hence agile ERP. So what is agile ERP? In simplest terms agile ERP requires your core business system to be highly effective and extremely efficient. You must keep your ERP system continually current, while also supporting the increased rate of change through acceleration of projects.
Testing must be streamlined with smarter processes to hoard off bottlenecks. The quality and speed of the ERP system must be high without requiring additional costs or resources. ERP agility is fast, responsive and adaptable, all with ease of use; i.e., easy to get information in and out of the system.
With responsiveness and adaptability inherent to digital transformation, we must ask, can IT deliver? IT projects, where the ERP is at the core have traditionally been managed in a waterfall method, meeting challenges and failures along lengthy project timelines. In fact, according to the Standish 2015 CHAOS report, IT projects with an agile approach, where change is more efficient and fast, have comparatively had higher success rates: 39% success rate with agile approach as opposed to 11% success with waterfall methodology.
Agile ERP for success
With an agile ERP approach delivering more successful IT projects, IT will need to integrate tools that can align with their business and deliver agility without disruption or risk. Furthermore, IT will need to ensure executive sponsorship before the digital transformation can begin, which according to the Standish report is a leading factor for project success.
Learn how to be successful in your journey to digital transformation. Download Enabling Enterprise Digitalization through ERP agility.