Nowadays, new market-distorting business models buzz around. The so-called ‘disruptive models’ have a significant impact on pricing, quality, competition and law and regulation. Everyone is aware of the news about Uber’s taxi services and Airbnb’s accommodation services. But, what is the role of disruption in the ERP world? Is your company ready to cope with disruption?
The global ERP market we’ve known for years is no more. Today’s market is facing fundamental changes. These changes are so radical that it shakes up the whole ERP market indeed. Companies that want to survive have to be willing and able to adjust to these changes rapidly. Change or get lost!
Cloud SureStep program
Microsoft is fully engaged to help her Dynamics partners in the transformation to this new world by means of the Road to Repeatability training program – in short R2R RAMP. By the way – since July 1st this program is now called ‘Cloud SureStep for Dynamics’.
Over the past 24 months Partner Master Class delivered these training programs in over 10 European countries and we certified over 100 Dynamics NAV partners in R2R RAMP. That makes us the biggest Cloud SureStep for Dynamics training partner worldwide.
These are the main transformations that we’ve observed during in these two years:
- Modern ERP buyers are risk averse.
- The IT department has a diminishing influence on the decision-making process. On the other hand, business people have a bigger influence.
- Subscription pricing really is the starting point for more and more buyers.
- There is a fast growing need for standardized solutions! (Experimenting with) customized solutions is losing popularity.
- Ranking arguments for choosing an ERP solution: speed of implementation (time to value) is getting the most important.
- Simplicity is always chosen over complexity.
New ERP competition
Over the past years, several new, disruptive ERP suppliers responded successfully to these buyer’s new wishes. Vendors like Xero, e-conomic and Netsuite are growing rapidly without an end in sight. These vendors are a direct threat to the Dynamics NAV channel, in which this growth today is significantly lower.
Only a few Dynamics partners seem to be aware of the necessity of responding to the changing wishes of buyers. The average Dynamics NAV partner focusses mainly on supplying traditional, customized projects. And they claim they’re too busy with their daily business to start their transformation process. There is nothing wrong with this on itself. However, partners neglecting to follow the immersive trends and impactful changes are at risk of ending as an ERP-fossil.
Be honest – is there really no time? Or is it a matter of priority? In the end, you’ll have to change or you’ll be doomed to lose the fight against competitors that do change.
If you decided to change, you obviously have to know what to change, and why.
Let’s take a look at the characteristics of a traditional, customized Dynamics NAV project:
- High complexity
- Project risk is mainly for the buyer
- Projects are lengthy
- High costs. Besides that, the licenses are sold
- Most NAV projects are still focused on function/feature
It is getting harder for traditional NAV partners to find organizations willing to take these features and risks for granted. Especially because there are more and more better alternatives to find.
Take action now!
Do you and your company want to survive this wave of ERP disruption? Take action! Find time to deepen your knowledge of contemporary buying behavior. Study why new ERP vendors do grow rapidly. Investigate how you can reduce the buyer’s risks of your proposition. And shift to offering based on subscription pricing.
We can help you!
Of course PMC can help you with this transition by educating, training, coaching and inspiring you and your organization. A nice first step is to attend one of our the so-called ‘workshop ERP Disruption’ which is or will be scheduled in various countries throughout Europe. In one day, this workshop will give you a clear overview on the current trends in the ERP market, the impact it has on your business and the way your organization can respond effectively. You’ll benefit from the insights, the experiences and the best practices we’ve gained in several European countries.
By attending this workshop with your complete board or management team, everyone will start thinking alike and everyone will be at the same knowledge level. It will be a fine start to fight the many changes and threats in a structured manner.
See you soon in one of our workshops?