The 7 Trends for ERP in 2008: SaaS, SOA, and Web 2.0
So you want to know the hot areas in ERP. If so I highly recommend to my readers Forrester Research’s R. “Ray” Wang’s Op-Ed piece 7 Trends in Enterprise Software Adoption for 2008. In it Wang discusses the latest survey that finds the trend for IT Decision Makers is for upgrades, collaboration, and knowledge management. Wang’s article is comprehensive and includes detailed bar graphs that enable the reader to clearly follow his text and assists in understanding the salient points.
I’ll list out these 7 trends with a brief explanation/summary, but check out his article for the full impact of the findings:
1. Software spending budgets for 2008 nearly identical to 2007: There actually is a slight up-tick of 9% planned for 2008. Although enterprises will be spending on licenses, operations, and development, there still is quite a lot to be spent on maintenance.
2. There is a need for Long Term App Strategies: Companies are laboring under the disjointed approach of the past (i.e. a little upgrade here, a little BPO there, with a little project integration thrown in for good measure). As we move to a Service Oriented Architecture (“SOA”) enterprises will take advantage of this and begin to implement long term strategies. Integration of applications is the number one priority.
3. A move toward packaged applications: Due to a possible economic slowdown, enterprises are focusing on operational efficiency and compliance as their main business drivers. Interest in BI is closely followed by CRM. There also will be major upgrades of ERP suites.
4. Web 2.0’s time has come: Enterprises are slowly recognizing how these tools improve collaboration and productivity, but are still reticent about security.
5. A majority adopt SOA: This supports the enterprise’s integration projects.
6. SaaS adoption grows by 50% in 2008: Pricing, ease of deployment, and minimal IT involvement are the key drivers for adoption.
7. Software investment in collaboration and content management: Enterprises allow access to new stakeholders such as suppliers, partners, and customers.
Wang concludes his article with a list of three recommendations and urges enterprises to develop a long term app strategy:
· Don’t delay: No need to buy all the new technology today. Plan ahead with an eye on use of existing technology and investment in future apps.
· Take an inventory of existing apps:Organize these apps by business process.
· Ongoing review of your apps strategy: Gauge progress and adjust accordingly.
