Evolving Enterprise Applications 2009 - Increasing the Business Value of Investments in ERP and CRM

Evolving Enterprise Applications 2009 - Increasing the Business Value of Investments in ERP and CRM published by Butler Group in July, 2009. This report consists of 172 pages and the price starts from US $ 2995.

Introduction

Abstract

MANAGEMENT SUMMARY

CATALYST

Enterprise applications are functionally mature at the core but remain immature in the value generation area. Technology changes are opening up more opportunities for value maximisation at the business level but are also increasing complexity so that, more than ever, enterprise applications need to be viewed and managed from the multiple perspectives of architecture, process ability, and delivery, under the banner of cost and value to the business.

KEY FINDINGS

• Enterprise applications are an easy target for cost-cutting initiatives but inappropriate cost cutting of the core applications that run the business undermines value and increases risk.
• Breaking down organisational silos, particularly between IT and business units, is fundamental to exploiting the innate value of enterprise systems but requires a collaborative culture and enterprise architecture approach.
• Applications are in a state of change - restructuring around a series of platforms and tasked with delivering process standardisation.
• Application extension is not just about adding new functionality but providing tools for insight, analysis, and collaboration.
• The Software-as-a-Service (SaaS) model brings its disruptive influence to bear on the integration, ERP, and application development areas.
• Under-utilisation of existing systems is a significant issue - 50% of standard functionality regularly goes unused.
• Standardisation is a major contributor to unlocking value and reducing costs.
• Strategic maintenance management can improve operational costs and release resources for valuegenerating initiatives.
• The next round of upgrades will be more challenging than normal technical or functional upgrades but is necessary in order to support the quest for business agility.
• Stability and flexibility appear to be mutually exclusive, but architectural change is starting to provide a solution, thereby providing a business case for additional investment.
• Service Oriented Architecture (SOA) and Business Process Management (BPM) are edging systems towards the much sought after alignment between applications and business objectives and application agility.

ANALYSIS

Introduction

Enterprise applications - integrated suites of applications used to run a large part of an organisation' s core business - are highly mature in terms of functionality, with some aspects qualifying as commodity operations because there is little differentiation between the various offerings. They are far from being commodity items in their entirety however because of their role in automating, standardising, and executing the critical operations needed to run a business. Investment in enterprise applications is a consistently high priority for organisations but the unfortunate aspects of their cost and complexity make them a prime target for cost cutting during recessionary times.

While constant evolution could be interpreted as a sign of weakness, it is more an indication of their strategic value and a reflection of the cost and intellectual capital tied up in them. Indiscriminate cutting will undermine value and increase risk to the business; strategic investments to improve efficiency or better manage interactions can release the value from existing investments, and generate new opportunities.

• How to make the most of existing financial and intellectual property investments in enterprise applications.
• What steps organisations can take to control the cost of maintenance and assess its real value to the business.
• The impact of Software-as-a-Service on delivery and payment models, and key technology and integration considerations.
• Where to direct investment in application extensions in order to secure the most effective returns.
• How technology change around SOA and BPM is impacting the way applications are constructed, accessed, and managed.
• The role of portfolio management and application consolidation in managing for business value and cost effectiveness.
• Why increased utilisation of standard components reduces cost and risk to the business.
• Why enterprise application upgrades are still so challenging and what can be done to ease the pain.

Table of Contents

Section 1: Management Summary

• 1.1 Management Summary

Section 2: Business Perspectives

• 2.1 Report Objectives and Structure
• 2.2 Business Drivers
• 2.3 Technology Change Points
• 2.4 Reducing Costs, Maximising ROI
• 2.5 Extending Application Boundaries
• 2.6 Enterprise Application Evolution
• 2.7 Application Portfolio Management

Section 3: Architectural Considerations

• 3.1 The Impact of Service Oriented Architecture
• 3.2 Application Consolidation
• 3.3 BPM in the Application Environment
• 3.4 Common Data Models and MDM

Section 4: Application Delivery

• 4.1 The Software-as-a-Service Model
• 4.2 SaaS Architecture
• 4.3 SaaS Integration
• 4.4 Distributed Services - Risk and Management Considerations

Section 5: Application Upgrades

• 5.1 Application Upgrade Considerations
• 5.2 Critical Points in the Application Upgrade Programme
• 5.3 The Case for Application Modernisation

Section 6: Application Maintenance

• 6.1 Identifying Maintenance Value
• 6.2 New Maintenance Models
• 6.3 Strategies for Reducing Maintenance Costs

Section 7: Vendor Strategies

• 7.1 Vendor Strategies
  • BT CRM Services
  • CODA
  • Consona
  • Epicor
  • Exact Software
  • IFS
  • Infor
  • Lawson Software
  • Microsoft Corporation
  • NetSuite
  • Oracle Corporation
  • QAD
  • RightNow Technologies
  • Sage
  • Salesforce.com
  • SAP
  • SugarCRM
  • Unit 4 Agresso
  • Workday
• 7.2 Case Studies

Section 8: Glossary

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