TALKING

One area they ’ re paying close attention to is enterprise resource planning ( ERP ) systems , recognized s the nerve center of organizational operations that , when fine-tuned , can unleash new levels of efficiency , opportunity , and innovation .

Foundational to operational functionality , ERP systems are often inflexible and expensive to maintain and upgrade – which is why , as enterprises evolve and demands for agility and adaptability grow , the traditional models of ERP maintenance and support are being looked at more closely .

In fact , we often hear from these leaders that software support alternatives are “ too risky ” or “ don ’ t provide the necessary security and compliance requirements .”

Here ’ s how to challenge these misconceptions :

Balancing risk and innovation

Iain Saunderson , CTO , Spinnaker Support

And it is procurement teams leading the charge , seeing ERP systems as strategic platforms capable of fostering greater business flexibility and growth while being mindful of maintaining their stability . They recognize that every dollar saved from operational efficiencies or smart renegotiation can be reinvested into areas that spur innovation and competitive advantage .

The relationship between procurement teams and IT departments can be tense . IT departments , often inherently risk-averse , tend to favor the stability and predictability of the in-house support contracts provided by established ERP vendors .

So how can your team make thisa reality ?

Consider third-party software support – an alternative to vendor software support which works more like a partner than a supplier relationship . It promises personalized , responsive and cost-effective support solutions tailored for ERP systems . Unlike traditional vendor support that comes with hefty price tags and rigid service structures , third-party providers offer a nuanced and personalized approach – at a fraction of the cost .

What exactly makes third-party support a strategic asset in the eyes of procurement ?

Every dollar saved from operational efficiencies or smart renegotiation can be reinvested into areas that spur innovation and competitive advantage .

Their reluctance to shift from these traditional platforms stems from concerns about potential risks and the uncertainty of transitioning to a new support structure .

It ' s the combination of direct cost savings , operational agility and the freedom it offers businesses to dictate the pace of their own technological advancement and not be beholden to the vendor ’ s preferred support policies .

Of course , recognizing and understanding these benefits is one thing – persuading IT leaders and C-suite executives to overhaul their ERP maintenance systems is another .

Procurement teams , on the other hand , are increasingly recognizing that adherence to vendor support contracts might pose its own set of risks . These risks are not always immediately apparent but can have long-term implications for your organization .

Staying with a vendor ’ s support often means being locked into their ecosystem , subject to their timelines for upgrades and patches , and their pricing structures .

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