News Articles

High cost of legacy ERP systems

Source: Vsoftsystems, 05/11/2018

Enterprise software is expensive and investing in the latest and greatest ERP software could become a vicious circle that requires huge investment. Businesses that rely on outdated legacy ERP software systems risk losing more than just their money. Legacy software is often no longer updated or maintained, usually in favour of more modern or new offerings. This means that as the software degrades over time, it gradually slows down every single business process and potentially causes disastrous errors in the data entry or manufacturing processes. Local business solutions provider One Channel CEO Bernard Ford says the legacy of enterprise management systems is one of poor quality reporting, inefficiencies and extremely high running costs. `Companies using these outdated systems urgently need to adapt to the changing landscape that allows for any-where, any-device access.` `The lack of standardisation and myriad of bolt-on as well as bespoke components that typically make up the current systems are open to error, difficulty in maintaining, high running costs and worse, security breaches leading to inefficiencies and lack of information,` he explains. Ford says post-modern ERP systems cater for the global realities of this changing landscape. `A system that allows for the standardisation of legislative governance rules around procurement, budgeting, workflow approvals, notifications and audit should be implemented.` `Post-modern, cloud-based ERP suite offers a low cost of ownership that also allows for in-country Software-as-a-Service (SaaS) and on-demand provision of systems,` says Ford. The importance of having access to systems that are designed to fit the functional requirement of the organisation is paramount for the successful deployment of the centralised infrastructure. They must be Web-based, 100% secure and easy-to-use. Early ERP solutions were dominated by heavy customisation. The next phase in the evolution was characterised by a move toward standardisation with commercial-off-the-shelf (COTS) technology and more requirements built into baseline software. This phase was followed by growing use of managed services, starting slowly with the application service provider (ASP) model and progressing rapidly with the advent of browser-based and cloud-enabled services. Over time, technology has become exponentially more complex and costly to manage. Each transition from mainframe to client-server to Web-based technologies has occurred twice as fast as the one before. The number of technologies required in each phase also has more than doubled. This rapid rate of change presents growing risks for organisations that manage their own ERP systems. Based on these trends, CGI believes the next wave in this evolution is the Agile cloud-enabled services (ACES) ecosystem. A growing number of organisations are turning to secure post-modern cloud-based ERP software so they can stay focused on their mission and spend less time managing technology. These systems are sometimes referred to as Agile Cloud Enabled Services (ACES). This integrated ecosystem features flexible use of three delivery models: * Company-owned private cloud - where the company provides the infrastructure on which the software provider deploys and manages the solution. * Community cloud - where the software provider owns, operates and maintains the entire infrastructure and application `stack,` including the operating system and database, and is responsible for security, disaster recovery and backups. * Software as a Service (SAAS) - where the software provider owns, operates and maintains the entire infrastructure and application `stack` as in the community cloud, but deploys and manages a single instance of the software across multiple clients. Acumatica is one of the new breed of so-called `post-modern` ERP systems, defined by Gartner as a technology strategy that automates and links administrative and operational business capabilities (such as finance, HR, purchasing, manufacturing and distribution) with appropriate levels of integration that balance the benefits of vendor-delivered integration against business flexibility and agility. Consulting firm CGI says organisations are moving away aggressively from highly customised, on-premises solutions toward shared platforms and cloud-enabled managed services. It says traditional ERP deployment models are giving way to more efficient, managed services that are supported by cloud-enabled technology. Acumatica was designed and built from the ground up for the modern era. Acumatica is a post-modern, cloud-ready, integrated ERP and Project Centric Management system comprising a suite of built-for-purpose components. Ford agrees with CGI that a `one-size-fits-all` approach is a thing of the past. `ERP software and delivery strategies must converge to address the growing demand for flexible deployment options by function, even when part of an integrated ERP suite.` CGI believes the time is right for an Agile Cloud-Enabled Services ecosystem that gives organisations the versatility to balance control, customisation and cost when deploying modern ERP functions without locking them into a single deployment model.


Search

  •    Johannesburg - Home Affairs officials and former prison warders are set to appear in court on Monday morning over allegations that they hatched an elaborate plan to assist in the illegal release of prisoners for a fee.... Read more...
  •    Last week we learned that hundreds of IT contractors across the Department of Home Affairs were told they were no longer needed, with just a few weeks notice, six weeks before Christmas.... Read more...
  •    When it comes to South African tourism, our beaches, safari parks, Table Mountain and the Garden Route undoubtedly garner the most attention.... Read more...
  •    SA`S NEW travel rules prevented our minor children from attending a family funeral. My wife and children were on holiday in Florence, Italy, and I had returned early to our home in Singapore when we received the tragic news that our three-year-old niece had passed away. We wanted to return to SA immediately, in time for the funeral last Friday.... Read more...
  •    EE and Virgin Media fined for breaking consumer protection rules Ofcom has imposed fines totalling £13.3m on EE and Virgin Media, saying both providers levied excessive charges on customers who ended their contracts early regulator Ofcom has imposed fines of £6.3m on EE and £7m on Virgin Media for overcharging phone and broadband customers who were trying to leave their contracts early.... Read more...
  •    Smart cities: how IOT is putting Africa on the map Internet of things infrastructure opens the door to technological innovation from the private sector, says IoT.nxt.... Read more...
  •    UK firms have a long way to go in building the business resilience required to withstand cyber threats and other major disruptions, a study shows... Read more...
  •    In South Africa, unregistered people working as migration agents are not breaking the law but are unregulated and you have no recourse for poor advice which will have devasting consequences on your application and your future in South Africa.... Read more...
  •    Overstaying one’s visa is a common occurrence among people who applied to extend their visa in South Africa and said visa not issued in time for travel.... Read more...
  •    Yes. In South Africa VFS, the officer taking your photograph and fingerprints ( biometrics) will talk to you using an interpreter.... Read more...

Get the latest Immigration News