Enterprise resource planning (ERP) offers new opportunities for finance to enable touchless transactions, drive predictive analytics, improve strategic planning and be the backbone for finance transformation through an integrated suite of business applications. Get to know how this new era of ERP will affect your organization.
By 2023, 65% of organizations will use ERP applications that encompass one or more fourth-era hallmarks
“Around 2010, a new era dawned, where ERP investments are the center of business strategy rather than a singular piece of technology,” says Nisha Bhandare, Senior Director Analyst, Gartner. “This evolution of ERP into enterprise business capabilities is driven and controlled more by the business than by IT.”
The 4th era of ERP
This latest stage is the fourth era of ERP. The first began in 1990, when Gartner expanded the definition of MRPII to include back-office functionality, and ERP has continued to evolve since.
As ERP solutions matured, organizations tried to get more from these expensive assets, and that pushed ERP far beyond its original boundaries in its second era. By the third era, ERP had become more of a strategy than a singular thing. This strategy encompasses whatever business capabilities the organization deemed to be relevant or necessary to deliver “ERP” and the constituent applications required to enable those processes.
The need to create, manage and understand data is paramount in the fourth era of ERP
This fourth era is a more radical shift — beyond just resources or planning or the enterprise and into a wider ecosystem. That ecosystem encompasses not only customers and suppliers, but also partners, competitors and stakeholders, often with interchangeable roles.
“Gartner predicts that by 2023, 65% of organizations will use ERP applications that encompass one or more fourth-era hallmarks,” says Bhandare. To help recognize and capitalize on this trend, Gartner has identified six hallmarks of this fourth era of ERP.