ERP’s Ticking Clock
In her article on ERP Today, senior editor and technology writer Radhika Ojha delves into the challenges organizations face as they embark on lengthy, multi-year ERP transformations. Drawing insights from Karthik Chakkarapani, SVP and CIO of Zuora, the article highlights a critical point: waiting for a traditional, monolithic ERP system to be fully rolled out before addressing urgent business needs—such as order-to-cash transformation—is akin to remodeling a house while ignoring a leaking roof. As businesses strive for market agility, this old-school ERP mindset is quickly becoming a liability. Chakkarapani stresses that the classic all-in-one ERP solution is ill-suited to today’s rapidly evolving business landscape, particularly for industries like telecom, publishing, and automotive. These sectors can’t afford to be shackled by a vendor’s slow-paced development roadmap. Instead, the shift is towards a composable ERP architecture where the core ERP serves as a stable financial backbone, while specialized platforms take over dynamic, customer-facing operations like billing, revenue automation, and complex pricing. This flexibility allows businesses to move quickly and innovate, without waiting for a full ERP transformation. The urgency of this shift is underscored by the fact that more than 50% of enterprises are expected to deploy hybrid revenue models by 2027. Failing to adapt to these changes in time will lead to lost revenue, slower product launches, and growing frustration within Finance and Go-To-Market teams. Rather than waiting for an entire ERP system overhaul, Ojha agrees with Chakkarapani advocating for a “decouple first” approach. By implementing a flexible, ERP-agnostic monetization layer early in the process, companies can unlock immediate benefits like faster financial closes, reduced revenue leakage, and the ability to launch new products in weeks instead of months. Moreover, while ERP remains critical, its role is evolving. There is a future where the ERP is the “orchestrator” of a suite of interoperable, cloud-native tools that enable rapid, agile responses to market needs. This modularity reduces risks, accelerates product launches, and future-proofs organizations without locking them into long-term, monolithic ERP systems.
