Scott Derksen, Senior Director, Platform Market and Business Development at NetSuite, discussed why cloud platform selection is just as important as choosing cloud applications.
Midway through his talk at the 2016 Chief Information Officer Leadership Forum held in Dallas on February 24, Derksen concluded that the CIO now has the hardest job in the enterprise. Derksen argued that, in terms of the evolution of systems, we’re now in a post-modern era that began in the 2000s and extends to the present day and beyond. The monolithic systems of the modern era (1990s to mid-2000s) have been deconstructed, which means that the mega-vendors created by SAP, Oracle, etc. in that previous era are no longer in control. Post-modern enterprise resource planning has emerged in the confluence of user disillusionment, value demands, and the availability of SaaS, said Derksen. CIOs have to wear many hats as they support hybrid approaches to analytics, ERP, and cloud integration.
Post-modern business is defined by these characteristics:
• A start-up state of mind permeates the enterprise, given that the disruptive nature of innovation
opportunities have been globalized. “The Internet has created global opportunities for every company,” Derksen pointed out.
• The enterprise must be super responsive to change. “New business models are popping up everywhere,” observed Derksen, and he provided the example of John Deere, which used to sell tractors and diggers and then suddenly was in the IT business as data was streamed off their devices–service records, maintenance schedules, upgrade alerts, etc.
• Transactional data inside a vertical market is captured as residual-value business intelligence.
Every company is a cloud company because “84% of net new software is cloud software,” stated Derksen.
“84% of net new software is cloud software.”
In today’s super nimble climate, platform selection is as important as cloud applications.
Derksen then took a minute to demystify the concept of “platform,” borrowing from Wikipedia: “Your platform is, in the most general sense, whatever a preexisting piece of software is designed to run within, obeying its constraints, and making use of its facilities.” What’s important, said Derksen, is to make sure you don’t have a car with no wheels—stuck on blocks and unable to go anywhere. “Will your SaaS application take you where you want to go?”
To make sure your platform has wheels, Derksen offered a “top-five” list of big, cloud platform must-haves:
5. It Must Help Implement Your Special Sauce
“Post-modern ERP requires a platform where you can personalize, customize, and develop for a competitive edge as well as integrate with all that stuff you inherited—all of that legacy.”
“Post-modern ERP requires a platform where you can personalize, customize and develop for a competitive edge as well as integrate with all that stuff you inherited—all of that legacy.”
4. It Must Be Able To Take You Global
This is so much more complicated than having an international website, said Derksen. “Remember, in our post-modern ERP setup, we believe that we’re either dealing with international competitors or we’re missing international opportunities.”
“Remember, in our post-modern ERP setup, we believe that we’re either dealing with international competitors or we’re missing international opportunities.”
3. It Must Balance Flexibility and Compliance
2. It Has To Give You Operating Advantage
1. It Must Have An Ecosystem of Services
“In the post-modern world, it’s all about the value creation in the systems of innovation. Jeffrey Moore and Ann Gartner have both done a ton of work on this idea of moving closer to systems of record,” said Derksen.
ABOUT SCOTT DERKSEN:
Scott leads NetSuite’s platform marketing organization and works with his team to develop the ecosystem in which the platform technologies are applied and monetized. Having spent over 10 years as a private sector CIO, his experience with Cloud technology is insightful to other CIOs, ISVs, NetSuite’s technology partners, and industry analysts alike.
In his career prior to NetSuite, Scott built and led information technology teams and created services on Cloud platforms that leverage the unique attributes of SaaS, Big Data, and supply-chain data pools to improve business performance across the industrial and agricultural supply chains.