Is It Time to Replace Your Enterprise Software?

This IDC Perspective explains the reasons behind companies' thinking about switching away from their longtime ERP, CRM, or other enterprise software vendor and how to make the right decision for your organization and situation. While core enterprise applications are deeply embedded into companies' processes and workflows, there are many cases where it might be time to discontinue some of those enterprise apps in favor of something that better fits with an organization's current and future goals. For example, in the case of ERP, many companies choose to switch vendors because they need to create more speed, scale, and agility to meet digital transformation goals. But that's only one reason, for one type of enterprise application. What are the other reasons companies are choosing to switch enterprise app vendors — not only for ERP, but for CRM, SCM, EAM/ALM, finance, procurement, business intelligence, and human resource management systems? This document will ask these questions and provide context about when to consider switching and how to evaluate potential replacements. There are many reasons for considering a change, including end of vendor support, a modernization or digitization initiative, a focus on AI, vendor changes in cost or licensing, integration problems with other parts of the infrastructure, or regulatory changes. If the decision to switch makes sense, taking the right steps in the right order can mean the difference between choosing the right application for the environment and the company's goals and choosing the wrong one. Steps include evaluating potential vendors' road maps, testing options carefully, and measuring ROI as comprehensively as possible. Along the way, make sure your data is clean, your priorities are straight, and that your timing makes sense."Just because an enterprise app has worked well for you for the past decade doesn't mean it's got everything you'll need to move your company forward," said Karen D. Schwartz, an adjunct research analyst with IDC's IT Executive Programs (IEP). "A lot has changed, and a lot will continue to change, both for customers and for vendors, as well as what's possible with technology. It makes sense to at least take another look at what you've got in place and where you want to be as a company five years from now." Show more