Over the next ten years, on-premise Enterprise Resource Planning (ERP) systems will be replaced with cloud-based ERP systems. That is what the industry experts are saying.

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Their conclusion is based on the following:

• The robustness of the cloud technology that allows the system to effectively process in a cloud environment.

• The richness of the business functionality.

• The ability to stay current with new releases.

• The reduced need for technical support personnel who are needed to support aging on premise ERPs.

 

This logic may convince leadership to look to the cloud now, however, the organization has to be ready to assess. How do you know if the organization is ready?

 

If organizational leadership can answer yes to the following questions, it is the right time for them to assess the cloud.

 

The questions include the following:

• Is the current ERP System substantially customized?

• Is it hard for the organization to upgrade the current system?

• Is organizational leadership ready to invest additional money in administrative systems?

• Are the impacted business units willing to optimize their business processes?

• Are the current ERP applications not meeting the business requirements?

• Are shadow systems and/or bolt on’s the norm vs the exception for the current ERP?

• Will the current ERP license agreements have to be renewed within the next couple of years?

• Is the CIO having trouble retaining a support team?

 

The Angle? If the answer to all of these questions is yes, it is time to assess. The process is rather simple. It includes developing a strategy, identifying a vendor that can independently help in the assessment, perform the assessment determine if the organization is ready to develop a plan to move to the cloud.

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