The ERP platform play: Cheaper, faster, better

“Consider the case of a large pharma company that used a single ERP system to provide distribution and warehousing despite the fact that distribution was a strong competitive advantage and needed to be flexible and responsive, while warehouse management was a basic commodity. The tight coupling between these two business domains in the ERP system meant that the changes needed in distribution were limited by system dependencies with warehouse management. This reality is a significant contributor to the accumulated technical debt.”

This is a great article from McKinsey for both non-technical and technical executives and senior management, as it clearly highlights the issues with the typical monolithic approach of tightly coupling various business functions into an ERP.

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