IT Governance and Executive Strategies

Photo of Aaron PolikaitisOffline

Photo of Aaron PolikaitisOffline

ERP systems have a scary reputation. Over the years many enterprises have initiated massive ERP implementations and upgrades, only to find themselves behind schedule, way over-budget and only using portions of the ERP functionality. Some of these initiatives have been abandoned mid-project or even ended in litigation. As a result, CIOs must carefully evaluate requests to make major changes to functioning, albeit woefully outdated, ERP systems.


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True story: A VSM executive recently renewed an agreement for a legacy on-premise human capital management (HCM) solution. In return for a five-year commitment, the vendor reduced the maintenance fee by 25% annually. Based on IDC's benchmark data, the price was, indeed, best in class. But several months later, another executive in the company’s Digital Transformation Office requested help on a transformation strategy, seeking to replace the company’s outdated on-premise HCM system with a SaaS-based solution. Should the contract renewal be classified as savings or a costly mistake?


Photo of Aaron PolikaitisOffline

Intelligent ERP applications are being evaluated and implemented by enterprises across all industries. Nevertheless, legacy ERP applications continue to consume a significant quantity of resources and money just to keep operations running.

According to Aaron Polikaitis, VP for IDC's IT Executive Programs Vendor Sourcing and Management practice, "Intelligent ERP will eventually replace legacy ERP solutions. Enterprises with coordinated transitions strategies will be in a position to make the shift in a fiscally responsible manner. Those that do not, will end up spending far more and managing a long business time to value.”



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