Constellation Research says that more companies have begun adopting two-tier ERP where they use legacy ERP systems for HR and finance ,while using a second ERP system for more innovative applications. Why is that happening? I don't think you can say it is a trend yet. I just read an abstract of the report and I think it has some merit as a future trend. I believe that what you are going to see is people having both on-premise and on-demand applications, where they actually mix those depending on how important, how core, how complex [their applications are].
Most often, when ERP projects do fail, what's the primary problem? The best companies use these technologies to change. It's whether they want to go after a new market, a new way of sourcing, a new way of managing their business -- whether they want to be competitive, whether they want to do acquisitions. When there are problems, the usual issue is that they want to actually get what they did before without changing what they do now. They don't go after new processes that are best-in-class to adapt to the new realties of the market they compete in. They just flat out want to pave the cowpath. That's not the way to use this technology.
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