Enterprise applications: working harder to maximize value
Tuesday, 21 July, 2009 Leave a comment
When people ask me about the nature, depth and style of change required and I DO try to convey the full message including justification. But I have had to become used to arguments about "cheap is king", etc. Yes, yes, yes so we ALL know how it has been and, to a lesser extent (due to the economic conditions), still is.
But IF you believe that, as we work through this recession and, eventually, come out of the other side this will still be the case don’t waste your time reading the following…or just about anything else I have penned. I would, however, welcome a discussion on the subject as I would really like to hear some convincing argument for the "old order".
Datamonitor Research Store – Enterprise applications: working harder to maximize value
Enterprise applications: working harder to maximize value. In the current economic climate, enterprise applications such as enterprise resource planning and customer relationship management could prove strategically important in terms of running businesses efficiently and effectively.
There is a tendency to focus on cutting costs, but cost reduction and value generation are two sides of the same bottom line that should be tackled together.
Enterprise applications form an integral part of an organization, but this can mean that they are often overlooked. However, no new initiative can be fully effective if the core it relies on is not tuned, and organizations could benefit from a change in perspective in which enterprise applications are perceived as fundamental enablers of change, with the capacity to adapt to new business demands and add further dimensions to new technologies, rather than as static back office transaction engines. Technology changes that bring modularity, such as the move to service oriented architecture (SOA), all play a part in opening enterprise applications up, changing the way they are used and enabling them to be used for more.
However, for this transformation to be effective, closer alignment between business and IT is a prerequisite. Maximizing the value of existing assets can be achieved through internal optimization, which, in addition to reducing operational costs, will improve operational efficiency with minimal investment and prevent investments falling into the application equivalent of negative equity. However, strategic investment in application extensions at the micro level is also a requirement; for example, investing in functionality that reduces waste in production planning by a few percentage points can deliver substantial direct