Growing Complexity of Data Integration, Governance Could Harm Companies
The increasing complexity of the enterprise resource planning (ERP) application portfolio is driving the need for a “defined postmodern” application integration strategy, according to Gartner Inc.
If companies don’t address the integration concerns in a strategic manner, cost and complexity will begin to spiral out of control and any benefit of the technology will be quickly eroded, the firm says. It predicts that through 2018, 90% of organizations will lack a postmodern application integration strategy and execution ability, resulting in integration disorder, greater complexity and cost.
"Postmodern ERP represents a fundamental shift away from a single vendor mega-suite toward a more loosely coupled and federated ERP environment," Carol Hardcastle, research vice president at Gartner, said in a statement. "This new environment promises more business agility, but only if the increased complexity is recognized and addressed."
The shift to the postmodern world is continuing, Gartner says. The majority of organizations now operate in a hybrid environment, leading to greater complexities in the application portfolio with new integration, analytics and governance challenges that can increase the risk of failure.
Many organizations moving from an on-premises monolithic state acknowledge that they have little or no skills to support postmodern application integration. They have no postmodern application integration strategy, “naively assuming the vendors will take care of it,” the firm says. “Vendors are not doing this, which has left many organizations scrambling to integrate applications when they finally realize this grim reality.”