A federated enterprise resource planning (FERP) system is an ERP system that allows various functions of business applications and components to be assigned or developed by different providers or vendors. As businesses continue to grow, expand, and evolve, business software has attempted to keep stride. Systems are now offering what is referred to as postmodern ERP systems that offer businesses increased flexibility with a blending of on-premises and cloud-based application. FERP solutions are one of such postmodern system.
Postmodern ERP solutions offer businesses more flexibility and many other benefits, but it’s not all glitz and glamour. With various complexities and challenges, a business must navigate carefully to avoid failure during implementation or deployment.
Here’s a look at four of the most commonly overlooked challenges of FERP solutions.
Wouldn’t it be nice to have a system that helps increase the flexibility and agility of your ERP system while reducing the complexity of business operations? Sorry. You can’t have it all, even with FERP. FERP solutions move away from a “single-vendor mega-suite” to gives businesses increased agility in operations, but reaching business goals and objectives could be complicated, requiring delicate management and maintenance.
The majority of companies have been operating with a single vendor for on-premises or cloud-based applications but not both. Their workforce has been trained to use a single vendor or operating system to complete business operations, which leads to another common challenge of FERP solutions: Businesses aren’t ready or don’t properly prepare for managing multiple vendors or sourcing solutions. Obtaining various applications through different vendors automatically increases the complexity and difficulty of managing a postmodern ERP solution. Employees will require additional training and staff hours, and the business will need to add IT staff to manage the new, more complex, multiple-vendor system.
Companies won’t fix existing issues simply by integrating a FERP solution. Many companies assume that if they replace their poorly functioning application with a new or more advanced solution, the issues will solve themselves. This just isn’t true. Postmodern ERP solutions aren’t a patch. They may run well, look good, and offer what’s needed for a while, but the consequences can be even more damaging in the future. Businesses must first address any underlying issues prior to FERP solution implementation and deployment. Doing so will increase the functionality of their FERP solution when it has been incorporated into the existing system.
As time passes, things change, and with these changes, rules change. With each evolution, businesses must remember to throw out the old rulebook and play by the new rules and guidelines. The advancement of ERP solutions is a perfect example. Postmodern ERP solutions such as FERP combine two aspects of ERP applications into one, requiring management of a more comprehensive and collaborative type.
Attempting to manage FERP software by using the rules of a traditional or “monolithic” ERP system not only fails to take into consideration the workforce but also the damaging effects to the software itself, which could ultimately result in intensive IT involvement.
FERP solutions offer businesses a useful blend of on-premises and cloud-based application. This postmodern system requires a more holistic approach to supporting successful business operations and to aiding in achieving business goals. However, as many businesses continue to use a tactical approach to implement the change to a FERP system, they soon learn the truth about the various challenges. Once they recognized and address those challenges, businesses can comply with the increased level of complexity and embrace the promising new business operations to help achieve their business objectives.