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Why Customers Should Care Who Runs Their ERP In The Era Of SaaS Applications

Jan 09, 2025 - forbes.com
The article discusses the implications of moving ERP systems to the cloud, highlighting the risk of commoditization as standardized workflows become more pervasive. It emphasizes the importance of vendor support, particularly in differentiating ERP systems through user experience and data strategies. Vendors need to demonstrate expertise in managing customer data to provide insights and maintain data efficacy, which is crucial for leveraging AI effectively.

Additionally, the article outlines four key factors for evaluating vendor partnerships: modern architecture for interoperability, support for cloud transition, investment in long-term cloud support, and balancing innovation with practicality. It stresses that innovation should address practical business needs rather than being pursued for its own sake. The cloud's impact on vendor-customer relationships will redefine how the value of SaaS applications is assessed, with successful vendors adapting to customer priorities.

Key takeaways:

  • The transition to cloud-based ERP systems could lead to commoditization, making ERP functionality pervasive and standardized.
  • Vendor support and expertise in data strategies are crucial for differentiation and successful ERP implementation.
  • Modern architecture, cloud transition support, long-term cloud investment, and balancing innovation with practicality are key factors in evaluating vendor partnerships.
  • Innovation should be driven by practical business needs rather than adopting new technologies for their own sake.
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