Is the public sector leading the digital Era by replacing ERPs?
João Simões Abreu, January 25, 2021
In the previous article, we discussed the concept of Intelligent Composable Business and how it changes the agility, speed of implementation of new features, and how it enables corporations to stay ahead of their competition.
On this one, we will take into special consideration the frequent statements that large enterprises who use monolithic ERPs are not ready or intend to replace them with modern ones. Interestingly, public institutions worldwide are leading this process – we will discuss some interesting use cases in future articles.
The contemporary digital divide among enterprises
It might come to you as a surprise that state-run institutions might be leading the way in digital transformation. Still, some public organizations – and even some governments – might be ahead of a considerable chunk of the business fabric, which lags on adopting long-lasting software and promoting a quick adaptation capacity. How so? By making sure they have intelligent composable mechanisms in place.
As you know, the pandemic disrupted many of the operations we had in place. Many companies had to pivot their business strategy but governments and public organizations, who are also dependent on their physical premises to help citizens, had to change the way they operated.
The public sector push on technology
According to Bill Finnerty’s, Gartner’s senior research director, presentation during the annual Symposium, by 2025, over 70% of core public safety and law enforcement systems will have to be modernized in response to demands for reform. Not only because they are reaching the end of their life cycle but also because they are not flexible enough to meet the expectations and needs they face. This factor will increase the public sector’s leading advantage over the private organizations. But how could one promote better agility and features to answer these challenges? The same way many of our clients did: replacing the systems they had in place with a flexible counterpart. In case an organization would instead invest in new monolithic systems, Finnerty states they will fail to:
- be agile enough to meet the expectations and demands they face;
- enable the staff to leverage emerging technologies;
- be cost-effective;
- be successful.
Large monolithic systems were not able to adapt previously, so why would they be a good investment now?
The pandemic tested everyone’s flexibility and resourcefulness. The entities that had agile tools in place were given a competitive advantage. It might come to you as a surprise, but our assessments indicate state-run operations are now, more than ever, aware and prone to embrace nimble software solutions to meet the demands they face.
Answering the starting question of “Is the public sector leading the digital Era by replacing ERPs?”: Yes, the public sector is more than ever interested in adopting technologies that make their governance initiatives nimble and in compliance with the fast-paced world we are living in – and modern ERPs are the way to go. We intend to show you how in the upcoming articles.