ERP Consolidation: The Rationale Is Growing Stronger

 

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In late 2013, APQC developed and launched a survey to uncover the critical success factors that must be in place when an organization endeavors to simplify and harmonize its ERP landscape, business processes, and data models. According to APQC research, only 30 percent of responding organizations use ideal ERP systems.

One can debate all day how many ERP instances are too many. The real issue is that many executives are reluctant to authorize a consolidation effort because they worry about the inevitable trade-off between (a) the cost and effort required to minimize and (b) the improved operating and decision-making agility that consolidation promises. However, the results of the APQC survey suggest that a tipping point is near. The negatives associated with multiple ERP instances are becoming too big to tolerate. The benefit potential of a consolidated ERP system can no longer be ignored.

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