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Chat with the CEO: ERPs and Digitalization

Updated: May 2

🚀 Did you know that 7 out of 10 digitalization projects fail to create value? This is not because the technology isn’t worth their time.

🔄 Rather, outdated methodologies for selecting and implementing technology still dominate corporate digitalization projects, according to our CEO Henrik Heggland, who witnessed this first-hand and was stirred into action.

🏗️ Many companies still base their digitalization strategy on the notion “One company, one system,” believing that it is less complex to implement one system, rather than several. This type of monolithic approach, which the traditional ERP vendors have taken advantage of, is ripe for disruption.

🛠️ Henrik points out three main “pain points” related to this design:

🔗 "Made for everyone, works for no one." Believing that one system will fit the entire organization and its functions – from finance to operations - is a utopian thought. You end up having to compromise, as the cost and complexity to tailor the system to your way of working is high. The reason for this lies in its tightly coupled design and lack of flexibility.

🔄 "Tightly coupled." The functionality between modules has rigid logical connections and dependencies, making it difficult to tailor any specific module to your work process without making large compromises. This is understandable in large ERP systems, as such dependencies are extremely hard to make generically flexible, so they rely on your ability to adapt your work process to their “standard” unless you are ready to pay top dollar for a development project.

💰 "Driven by finance." The requirement for an ERP system often stems from the finance department needing to streamline financial processes such as invoicing, payroll, and business controlling. This is a worthwhile investment in and of itself, but the issue is that the operational departments in turn need to adapt to a system of reporting that does not necessarily improve their quality of work or their efficiency. In fact, efficiency is negatively impacted as reporting and “data capturing” increases in an organization.

🤖 This is why Konciv wants to be the David in the world of these ERP Goliaths.

💡 “Having seen the challenges first-hand, and the lack of alternatives available to organizations, we saw the need for a new type of technology and commercial approach. First and foremost, flexibility and ease-of-use need to come first. Tailoring the technology to adapt to any operational work process needs to be time- and cost-efficient. No two organizations work the same exact way. This was the foundation for creating Konciv – operations first, through flexibility.”

🔄 With the arrival of Konciv, we see many organizations taking an alternative approach to ERP. Instead of a monolithic approach, pushing everything into a single system, a more distributed model appears as the more practical solution.

🌐 “In Konciv we firmly believe that a distributed model, or service-based design, is the best approach to ERP. Konciv can digitize the company's operational processes and ensure that it works the way you work. It integrates seamlessly with accounting systems to ensure a holistic ERP system through this distributed model. It ensures efficiency and happy workers, reduces the cost of change, and increases flexibility without compromising on the financial requirements.” #worksthewayyouwork #digitalinnovation #operationalsoftware #davidandgoliath

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