Is there a future for classical old school ERP solutions? I wonder….

I see a lot of catch up from modern platforms and solutions on old school ERP as partnership models. Now why is that?

Old school ERP solutions are not considered the future primarily because of their limitations in terms of speed and adaptation to the current AI market trends. Here are some reasons why they are not inherent future-proof:

Limited Speed

Traditional ERP solutions are often slow and may not keep up with the increasing data processing demands of modern businesses. In the fast-paced digital environment, speed is crucial for real-time decision-making and responsiveness.

Lack of AI Integration

Old-school ERP systems generally lack advanced AI capabilities. AI is becoming increasingly vital in optimizing business processes, predictive analytics, and automation. Without AI integration, ERP solutions may not effectively leverage data insights or provide intelligent decision-making support.

Scalability Challenges

Legacy ERP systems can struggle to scale effectively with growing data volumes and business complexities. As companies expand and divers ify, the rigidity of traditional ERP setups may hinder their ability to adapt to changing business needs efficiently.

Inadequate Personalization

Modern businesses require personalized, user-centric experiences. Old ERP solutions often lack the flexibility to customize user interfaces or experiences to meet individual user requirements, which is a limitation in today’s customer-focused market.

Integration Issues

Interoperability with new technologies and platforms is crucial for seamless business operations. Old ERP systems may face compatibility challenges when integrating with emerging technologies like cloud computing, IoT, or mobile applications, limiting their ability to stay competitive in the rapidly evolving digital landscape.

Security Concerns

Outdated ERP systems may not have the robust security measures needed to combat modern cyber threats. With the increasing frequency and sophistication of cyber-attacks, security vulnerabilities in legacy ERP systems can pose significant risks to sensitive business data and operations.

In the world of contractmanagement i see a lot of clm providers gambling on integration with these moloch ERP systems out there. And I wonder is that a strategic wise choice? I have seen in the rpa market the value erosion by late standards and tech enablement on these large old school platforms.

Isn’t it time for a change and go away from this old tech and api libraries and metal based (silver/gold etc) partner models?

Author: Arjen van Berkum