1   © 2011 Forrester Research, Inc. Reproduction Prohibited
Cloud Breakout Session:What Comes After ERP?China Martens, AnalystForrester ResearchApril 12, 2012 4:45 p.m.2   © 2011 For...
AgendaIntroductionERP: Yesterday, today, and tomorrowChallenges companies battle in their supply chainThe appeal of the cl...
What do we mean by “cloud”?    Cloud = Forrester defines cloud computing as: “a standardized IT    capability (services, s...
What do we mean by “network” and “collaborativecommerce”?    Network = a platform to connect companies with their trading ...
The processes powering ePurchasing                                                                                   Emerg...
Potential agendaIntroductionERP: Yesterday, today, and tomorrowChallenges companies battle in their supply chainThe appeal...
Seven trends are reshaping ERP, other business apps Flexibility drives higher value and business involvement  8   © 2012 F...
A closer look at three of those trends:SaaS, mobile, and collaboration   Cloud deployment models change app economics    ...
But much of ERPs focus remains inward looking  ERP as a transactional system       – Centered on individual company‟s nee...
Four forces are reshaping ePurchasing                                                                            Vertical ...
Four drivers for ePurchasing customers  SaaS is becoming more attractive – sometimes, epurchasing software is   only avai...
Most enterprises still have a buyer-centric approach     to ePurchasing13    © 2012 Forrester Research, Inc. Reproduction ...
We‟re now seeing the emergence of global communities of buyers and sellers                                                ...
Three tiers of B2B supplier networks     EDI-based                                 GXS, IBM Sterling,                EDI s...
Emerging tier of B2B supplier networks: Transaction and relationship-based network Enables advanced collaboration  In add...
Potential agenda Introduction ERP: Yesterday, today, and tomorrow Challenges companies battle in their supply chain The ap...
Challenges companies are trying to deal with across their global supply chains  How to more proactively respond to change...
Challenges companies face with managing their supply chains – looking outward as well as inward  How to continue making i...
Customers are keen to open up their supply chain beyond the four walls of their organization20   © 2012 Forrester Research...
Potential agenda Introduction ERP: Yesterday, today, and tomorrow Challenges companies battle in their supply chain The ap...
Why companies are choosing SaaS apps  Don‟t want to be in the “IT business” of supporting on-premises software  Seeking ...
What are your firm‟s concerns about using SaaS?           Percentages represent the percentage of respondents who selected...
Companies worry about SaaS security, but that concern is being gradually allayed  Enterprise use of SaaS means enterprise...
Benefits of collaborative commerce  Technology that non-invasively hooks existing ERP into supply chain   community to ac...
Recent cloud moves from ERP and supply chain vendors  Ariba – Commerce Cloud – combines SaaS spend management, finance   ...
Vendors expanding scope via M&A  2011:*  Ariba buys Quadrem (supply network provider, SaaS supply   management)  Emptor...
Potential agenda Introduction ERP: Yesterday, today, and tomorrow Challenges companies battle in their supply chain The ap...
User case study - Nalco29   © 2012 Forrester Research, Inc. Reproduction Prohibited
User case study - Alcoa30   © 2012 Forrester Research, Inc. Reproduction Prohibited
User case study – Rio Tinto31   © 2012 Forrester Research, Inc. Reproduction Prohibited
Potential agenda     Introduction     ERP: Yesterday, today, and tomorrow     Challenges companies battle in their supply ...
Q&A33   © 2012 Forrester Research, Inc. Reproduction Prohibited       2009
Thank youChina Martens+1 617.613.6548cmartens@forrester.comTwitter: @chinamartenswww.forrester.com  © 2009 Forrester Resea...
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What Comes after ERP?

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  • *Date of deals cited are the closing dates for the acquisitions, not the announcement dates.
  • What Comes after ERP?

    1. 1. 1 © 2011 Forrester Research, Inc. Reproduction Prohibited
    2. 2. Cloud Breakout Session:What Comes After ERP?China Martens, AnalystForrester ResearchApril 12, 2012 4:45 p.m.2 © 2011 Forrester Research, Inc. Reproduction Prohibited 2009
    3. 3. AgendaIntroductionERP: Yesterday, today, and tomorrowChallenges companies battle in their supply chainThe appeal of the cloud and collaborative commerceUser case studiesQ&A3 © 2012 Forrester Research, Inc. Reproduction Prohibited
    4. 4. What do we mean by “cloud”? Cloud = Forrester defines cloud computing as: “a standardized IT capability (services, software, or infrastructure) delivered by Internet standard technologies in a pay-per-use, self-service way.” There are three classes of cloud services – software you rent (software- as-a-service -- finished apps); app services and platforms (platform-as-a- service -- middleware for developers to build cloud apps); and infrastructure services and platforms (infrastructure-as-a-service -- places to deploy cloud apps – on-demand virtual hosting).4 © 2012 Forrester Research, Inc. Reproduction Prohibited
    5. 5. What do we mean by “network” and “collaborativecommerce”? Network = a platform to connect companies with their trading partners and to facilitate collaboration between all parties. The network supports a wide variety of functionality including partner discovery, e-procurement, and e-invoicing. Collaborative commerce = a combination of cloud software, services, and community to enable organizations and their current and potential trading partners -- suppliers and buyers -- to negotiate and work closer together for their mutual financial benefit.5 © 2012 Forrester Research, Inc. Reproduction Prohibited
    6. 6. The processes powering ePurchasing Emerging category: Supplier risk and 2. Supplier performance assessment management 1. Spend analysis 3. Supplier identification8. Electronicinvoice Supplier network 4. Sourcingprocessing andpresentment services 7. Order 5. Contract fulfillment life-cycle (services management procurement) 6. Procurement 6 © 2012 Forrester Research, Inc. Reproduction Prohibited
    7. 7. Potential agendaIntroductionERP: Yesterday, today, and tomorrowChallenges companies battle in their supply chainThe appeal of the cloud and collaborative commerceUser case studiesQ&A7 © 2012 Forrester Research, Inc. Reproduction Prohibited
    8. 8. Seven trends are reshaping ERP, other business apps Flexibility drives higher value and business involvement 8 © 2012 Forrester Research, Inc. Reproduction Prohibited
    9. 9. A closer look at three of those trends:SaaS, mobile, and collaboration Cloud deployment models change app economics - SaaS is also impacting look-and-feel of apps - Creating cloud apps ecosystems. Mobile technology accelerates business processes – Rethinking apps for mobile impacts user interfaces – Tablets extend user experience Social collaboration tools come to apps – Much of the initial focus is on internal collaboration – Creates linkages across a firms business apps9 © 2012 Forrester Research, Inc. Reproduction Prohibited
    10. 10. But much of ERPs focus remains inward looking  ERP as a transactional system – Centered on individual company‟s needs – Some vertical focus – On-premises deployment  ERP as transactional and enablement system – Centered on individual company‟s needs – More vertical focus – Variety of deployment options, including SaaS10 © 2012 Forrester Research, Inc. Reproduction Prohibited
    11. 11. Four forces are reshaping ePurchasing Vertical Cloud industry computing focus E-purchasing Smart computing software Supplier networks11 © 2012 Forrester Research, Inc. Reproduction Prohibited
    12. 12. Four drivers for ePurchasing customers  SaaS is becoming more attractive – sometimes, epurchasing software is only available as a SaaS deployment, e.g., supplier networks.  The rise of „smart computing‟ – the addition of analytics and collaboration to apps.  A stronger focus on the needs of specific industries – to meet the different buying processes of verticals including government.  Supplier networks are the place for buyer-supplier engagements – exchanges of purchase orders, invoices, documents, etc. More recognition among buyers of the value of such networks.12 © 2012 Forrester Research, Inc. Reproduction Prohibited
    13. 13. Most enterprises still have a buyer-centric approach to ePurchasing13 © 2012 Forrester Research, Inc. Reproduction Prohibited
    14. 14. We‟re now seeing the emergence of global communities of buyers and sellers Cloud Computing •Scale and reach to be effective •Unstructured collaboration, not merely transactions •Sharing information with your peers14 © 2012 Forrester Research, Inc. Reproduction Prohibited
    15. 15. Three tiers of B2B supplier networks EDI-based GXS, IBM Sterling, EDI standards, direct Crossgate, SPS between buyers and Commerce, Covisint, suppliers, any documents Covisint, Liaison, EasyLink, through pipe, charge Seeburger, NuBridge suppliers more than buyers PO and/or Ariba, ADP P2P (DO2), XML standards, standard invoice based Basware, Hubwoo, security and reliability, POs Quadrem, OB10, Perfect, and/or invoices and related Emergence of Capgemini Procurement, documents, charge buyers Relationship-based GHX, TradeCard, Elemica, or suppliers more heavily Exostar, Agentrics, networks SciQuest, OFS Portal, JPMorgan Chase P2P General Itella (Finland), Stralfors Basic security and reliability, electronic (Norway), Evenex any documents, low fees documents (Denmark) equally for buyers and suppliers15 © 2012 Forrester Research, Inc. Reproduction Prohibited
    16. 16. Emerging tier of B2B supplier networks: Transaction and relationship-based network Enables advanced collaboration  In addition to exchanging PO/invoice data, companies are also: – Reaching out during the sourcing process to discover new suppliers, or, if suppliers, finding potential new customers. – Proposing and evaluating services, e.g., temporary labor candidates, with the aim of discovering the best value. – Negotiating spot buys.16 © 2012 Forrester Research, Inc. Reproduction Prohibited
    17. 17. Potential agenda Introduction ERP: Yesterday, today, and tomorrow Challenges companies battle in their supply chain The appeal of the cloud and collaborative commerce User case studies Q&A17 © 2012 Forrester Research, Inc. Reproduction Prohibited
    18. 18. Challenges companies are trying to deal with across their global supply chains  How to more proactively respond to change – economic, environmental, industry – and manage risk  How to improve connections between their ERP apps and the many disparate apps being used by trading partners to minimize process inefficiencies, errors, and costs  How to cut back on manual processes and move to more automation, freeing up staff from data entry, support desk, and “firefighting” roles  How to better co-innovate with suppliers in both good economic times and bad  How to gain more visibility into order, invoice, and payment status  How to gain more control over spend18 © 2012 Forrester Research, Inc. Reproduction Prohibited
    19. 19. Challenges companies face with managing their supply chains – looking outward as well as inward  How to continue making internal processes more efficient and streamlined, both to cut costs and to grow profitability.  How to boost interorganizational productivity by forging tighter bonds with all their partners and the transactions they‟re engaged in.  How to achieve a deeper level of collaboration with partners and customers and a more effective two-way flow of information.  How to realize more benefit from buyer and supplier networks – both in terms of expanding additional relationships and identifying potential new opportunities and partners.  How to work with partners so they and the company function as a community, a combined organization for the better benefit of all – re resolving issues faster, negotiating discounts, etc.19 © 2012 Forrester Research, Inc. Reproduction Prohibited
    20. 20. Customers are keen to open up their supply chain beyond the four walls of their organization20 © 2012 Forrester Research, Inc. Reproduction Prohibited
    21. 21. Potential agenda Introduction ERP: Yesterday, today, and tomorrow Challenges companies battle in their supply chain The appeal of the cloud and collaborative commerce User case studies Q&A21 © 2012 Forrester Research, Inc. Reproduction Prohibited
    22. 22. Why companies are choosing SaaS apps  Don‟t want to be in the “IT business” of supporting on-premises software  Seeking cheaper alternative to on-premises software and associated maintenance  Keen to cut costs of IT infrastructure, servers, etc.  Speed of SaaS implementation and deployment  Gain features or functionality not available in traditional licensed product  Comfortable with SaaS model, want to try it elsewhere in the organization  Want to focus internal IT resources on other projects  Have a SaaS-first IT strategy for apps  Mismatch between existing on-premises apps and business needs is widening22 © 2012 Forrester Research, Inc. Reproduction Prohibited
    23. 23. What are your firm‟s concerns about using SaaS? Percentages represent the percentage of respondents who selected “4” or “5” on a scale of 1 to 5 where 1= not at all concerned and 5= very concerned. Base: 556 North American and European software decision-makers in enterprise organizations Source: Forrsights Software Survey, Q4 201123 © 2012 Forrester Research, Inc. Reproduction Prohibited
    24. 24. Companies worry about SaaS security, but that concern is being gradually allayed  Enterprise use of SaaS means enterprises have carried out and continue to carry out their own assessments of SaaS vendors‟ infrastructure  Some organizations view SaaS as potentially more secure and less risky than their own aging, on- premises environments  SaaS vendors continue to build out data center infrastructure around the globe  Increased confidence in SaaS vendors‟ security policies and their service level agreements  More interest/confidence in third-party certification of SaaS security24 © 2012 Forrester Research, Inc. Reproduction Prohibited
    25. 25. Benefits of collaborative commerce  Technology that non-invasively hooks existing ERP into supply chain community to access a broader wide range of spend and collaborative business processes  Access to a large community of suppliers and buyers beyond the trading partners firms already engage with  A single point for all suppliers to collaborate  Better positioned to manage supplier relationships, more easily onboard new suppliers, etc.  Can be more proactive to change, speed invoice process  Can better communicate real-time invoice and payment status to suppliers  Can realize savings when more transactions are automated25 © 2012 Forrester Research, Inc. Reproduction Prohibited
    26. 26. Recent cloud moves from ERP and supply chain vendors  Ariba – Commerce Cloud – combines SaaS spend management, finance management, and sales generation apps with Discovery services  Basware – B2B Cloud - Alustra multi-tenant cloud-based platform for B2B transaction collaboration – focus on wide range of company sizes.  IBM – Smart Commerce – combines recently acquired (DemandTec, Emptoris, Sterling Commerce) and in-house technologies  Oracle – Fusion Procurement  SAP – SAP Supplier Infonet – cloud-based data collection service collects information from customers‟ ERP systems and presents to suppliers as KPI graphs and alerts26 © 2012 Forrester Research, Inc. Reproduction Prohibited
    27. 27. Vendors expanding scope via M&A  2011:*  Ariba buys Quadrem (supply network provider, SaaS supply management)  Emptoris buys Rivermine (telecom expense management)  Emptoris buys Xcitec (German supplier management vendor)  Ariba buys b-process (French e-invoicing service provider)  SAP buys Crossgate (B2B integration provider)  2012:  Basware buys First Businesspost (German e-invoicing network operator)  IBM buys DemandTec (SaaS price, promotion, merchandising analytics)  IBM buys Emptoris (supply and contract management vendor)27 © 2012 Forrester Research, Inc. Reproduction Prohibited
    28. 28. Potential agenda Introduction ERP: Yesterday, today, and tomorrow Challenges companies battle in their supply chain The appeal of the cloud and collaborative commerce User case studies Q&A28 © 2012 Forrester Research, Inc. Reproduction Prohibited
    29. 29. User case study - Nalco29 © 2012 Forrester Research, Inc. Reproduction Prohibited
    30. 30. User case study - Alcoa30 © 2012 Forrester Research, Inc. Reproduction Prohibited
    31. 31. User case study – Rio Tinto31 © 2012 Forrester Research, Inc. Reproduction Prohibited
    32. 32. Potential agenda Introduction ERP: Yesterday, today, and tomorrow Challenges companies battle in their supply chain The appeal of the cloud and collaborative commerce User case studies Q&A32 © 2012 Forrester Research, Inc. Reproduction Prohibited
    33. 33. Q&A33 © 2012 Forrester Research, Inc. Reproduction Prohibited 2009
    34. 34. Thank youChina Martens+1 617.613.6548cmartens@forrester.comTwitter: @chinamartenswww.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited

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