Gartner first coined the term "postmodern ERP" in 2014 as an effort to describe how the ERP landscape had evolved up to that moment. Previously, the ERP existed as a single central software application housing a whole host of functions. As time passed, however, the technology grew and changed to become an overarching suite to which applications from outside parties connected and fed information.

Postmodern ERP: Integrating Administrative and Operational Components

Gartner categorizes ERP functions according to two strategies, which the postmodern ERP integrates: administrative and operational strategies.

The administrative strategy component is common to both manufacturers and service-oriented enterprises. Generally speaking, all companies require administrative functions from their ERP, like solutions that handle financial, HR and purchasing functions.

The operational component is often unique to supply chain functions required of manufacturers, logistics providers and other organizations that make, sell and transport tangible products.

Most businesses, especially newer ones, have unique needs that require specialized services to help them manage their administrative and operational functions. The postmodern ERP sits at the nexus point of these two domains, integrating separate applications produced, and perhaps maintained, by third parties, according to the enterprise's needs.

Is a postmodern ERP right for me?

If the idea of moving your solution toward a postmodern ERP model sounds enticing to you, you may be looking for some guidance to determine if this is really the right choice for your enterprise. Here are three questions to consider on your road to that decision.

Are my current needs addressed by my traditionally configured ERP?

If you're still relying on independently created, ad hoc solutions like custom spreadsheets that don't connect with your ERP architecture to handle business-critical tasks unique to your industry, this could be a problem. If duplicate data or a lack of communication has produced organizational headaches, and the out-of-the-box solutions for your traditional ERP don't address your needs, a change could be in your future.

Are there third-party solutions available that better meet my unique needs?

A postmodern ERP configuration will be most attractive to you if you research and discover third-party applications that meet your needs and integrate with a postmodern ERP setup that you find suitable.

Am I paying for functions I don't use?

Even if you have to continue to subsist on your customized spreadsheets or other siloed software, if you're paying for ERP functions that you aren't using, and if you could save money by scaling back, that might be the right direction to go. It will give you added flexibility as your company matures, too. Just make sure to factor the change-over process into your cost-benefit analysis.

If you want further help making this decision and finding a partner who can help you update your ERP as needed, reach out to Accent Software to see how we can assist.