Enterprise IT is at a crossroads as the C-suite grapples with aligning core digital processes with emerging technologies deployed on the digital edge. The disconnect between the embedded digital core and decentralized edge applications has led to fragmented innovation that is not fully integrated.
While core processes like ERP and CRM systems have been upgraded and moved to the cloud, they remain self-contained and lack integration with the more agile and diverse edge technologies being explored by business units. This disconnect limits the scalability and impact of edge initiatives.
To address this challenge, a platform-oriented strategy is recommended. By shifting from ERP-centered thinking to a modern platform organization, enterprises can reduce costs, accelerate operations, and improve outcomes. This approach involves isolating strategic elements within the ERP, creating a facade layer between core and applications, and selectively customizing the ERP to enhance value.
Standardization, connectivity, and data governance are key focus areas for bridging the core-edge gap. By standardizing tools and methods, streamlining data connectivity, and harmonizing data governance rules, enterprises can create a more unified core-edge platform that enables streamlined operations and automation.
Examples of how a unified core-edge platform can enhance operations include improving order management, optimizing mortgage collections, and automating financial book closings. However, challenges such as standardization conflicts, scaling without stifling innovation, and data governance complexities must be navigated.
Platform engineering is emerging as a critical IT discipline, offering reusable components and tools that bridge developer portals and core infrastructure. By adopting a platform approach, enterprises can leverage both core and edge technologies to interact with customers, markets, and ecosystems more intelligently and efficiently.
In conclusion, unlocking the value of enterprise IT requires bridging the gap between core and edge technologies. A platform-oriented strategy that emphasizes standardization, connectivity, and data governance can help enterprises integrate core and edge systems effectively, enabling more streamlined and automated operations.
