Enterprise applications are not new and have been around for decades. Since their start, enterprise applications have increased in their level of sophistication and business automation. However, this sophistication comes with a significant degree of complexity too.
Historically, enterprises were in the position where they needed to build everything themselves. Much of this stemmed from the fact there were limited options to consider. Fast forward to today and there are a myriad of options of how an enterprise can consume an enterprise application.
However, getting from here to there is not trivial. Practically every enterprise application has a strong degree of complexity that is directly tied to the intricacies of their specific business operations. For decades, enterprises have taken the approach of customizing the application to match their existing business processes. Due to the degree of customization, every enterprise Information Technology (IT) organization essentially created their own enterprise application snowflake.
CHANGING THE ENTERPRISE APPLICATION PARADIGM
One of the challenges for enterprise applications in the cost to upgrade. All of the unique customizations significantly increase the cost and complexity to upgrade the system. The customizations, related programming, configuration and testing involved turn each upgrade into the equivalent of a new implementation.
For many enterprises, it is common practice to skip versions rather than maintain currency due to the cost and disruption associated with the complexity to upgrade. This also means that many enterprises delay their ability to leverage new functionality.
New opportunities from cloud computing and Artificial Intelligence (AI) present unique opportunities to enterprise applications. With cloud-based enterprise applications, no longer is the enterprise required to install, manage and operate the underlying enterprise application. As applications increase in their level of complexity, this takes an increasingly huge burden off the shoulders of the IT organization.
AI presents a different type of opportunity. Enterprises are increasingly their reliance on data to gain greater insights. The volume and types of data are adding increased pressure on the traditional methods to analyze data. AI presents a unique opportunity to automate the process and gain insights not previously possible. However, the more data available to the AI algorithm, the more supportive it can be. And that is where cloud comes in to provide additional resources in a meaningful way when needed without the need to build a fortress internally.
TRADITIONAL VERSUS TRANSFORMATIONAL
Of late, enterprise IT organizations are shifting their focus from a traditionalIT organization to that of a transformationalIT organization. That is to say that their focus is shifting from technology-centricto business-centric. As part of this shift, IT organizations are looking for ways to streamline their technical operations and focus more on data and insights.
The shift to transformational IT organizations is having an impact on the most sacred applications within the IT portfolio including the enterprise applications.
MATURING THE THINKING ABOUT ENTERPRISE APPLICATIONS
More mature enterprises are starting to shift their thinking about enterprise applications. This is due to a number of factors including 1) IT organizations are shifting their focus on business-centric outcomes, 2) Mature alternatives exist for even the largest of implementations 3) The pressure to implement advanced functions is increasing and 4) The speed in which IT organizations must respond with changes is increasing.
Each of these pose a significant challenge to the traditional approach of maintaining enterprise applications. The only real solution is to change the thinking around enterprise applications to avoid proliferating snowflakes.
Agreed. Businesses are starting to think about buying Business Process Platforms based on business outcomes, moving away from applications based on IT KPIs and the constraints of legacy and bespoke development. Leading CIOs are seeing this change and transforming their organisations to be closer to the business functions. New tech like AI, etc is a great enabler to drive insight across all layers and enable orchestration of commodity paltforms.
Thanks for your comments. Yes, businesses are moving toward focusing more on business outcomes which provide greater focus on value.