Thought Leadership

Building Blocks of a Digital ERP

An emerging Hyper Growth Digital ERP Market Place:

Analysts predict Digital Transformation to be a $2.2 Trillion marketplace by 2020. This market is an integrated framework of technologies including Cognitive, Cloud, Internet of Things, Big data, robotics, mobility and a range of other emerging technologies. IDC also predicts the worldwide cognitive systems, content analytics, and discovery software market will grow from $4.8 billion in 2015 to $10.7 billion in 2020 with a compound annual growth rate (CAGR) of 17.3%..

Here’s a few more analyst predictions…

  • By 2019, 40% of all Digital Transformation initiatives and 100% of all effective IOT efforts – will be supported by Cognitive Capabilities
  • By year end 2017, over 70% of the Global 500 will have dedicated digital transformation / innovation teams
  • By 2020 all enterprises’ performance will be measured by a demanding new set of digitally transformation driven benchmarks, requiring 20% – 100% or better improvements in KPI

Those numbers should have caught your attention….Are you ready?

Building Blocks of a Digital ERP:

Taking this to the next level of discussion, let me introduce to you 7 building blocks of a digital ERP system…


  1. Cognitive Insights: This refers to Cognitive Analytical solutions like Procurement Intelligence, Cognitive Field Tech Services, Workforce Engagement Advisor, and a range of applications that is designed to transform your experience with an intelligent ERP application across multi discipline process areas like order to cash, record to report, etc
  2. Machine Learning Model: This technology is the heart of artificial intelligence with products like Watson from IBM that introduces natural language processing and natural language querying. The generation of machine learning takes us into deep learning solutions
  3. IOT Automation: With the growing momentum of digital technologies in this space it covers a broad area of instrumentation, inter-connectivity, intelligence and in context systems between machine to machine and machine to ERP. Data entry is considered to be old stone age with the automation that IOT introduces.
  4. Cognitive Data Ingestion: With the growth of data in terms of structured and unstructured, new models of data ingestion is emerging. Machine Learning has made this process intelligent where systems can ingest high volumes of structured and unstructured data in real time or batch mode. Intelligent data ingestion systems reduces errors and brings automation to what could be a manual process with multiple steps of validation.
  5. Events Driven ERP: A dynamic ERP that can respond to events like weather patterns, consumer driven business events can all offer better controls in how the ERP responds to the event. If you are interested to learn more about business event based insights, I would highly recommend Kip Twitchell’s book Balancing Act: A Practical Approach to Business Event Based Insights
  6. Data as a Service: In today’s world data is the new economy with data as a service emerging as the front runner in offering businesses a competitive advantage to understanding their customer profile, buying patterns, potential inventory turns and so much more
  7. Block Chain: A Cognitive framework with Block Chain ensures transparency, speed, lowers risk and the promise of knowing your cash positions with financial institutions in real time. It is the next generation real time EDI architecture ERP’s traditionally have with Banks and financial institutions.

When these capabilities are brought together rapidly we have the evolution of a dynamic decision making system with real time responses to events or a Digital ERP.

A Digital ERP system addresses all three areas of an enterprise’s growth engine:

  • Value Chain (example Cognitive Analytics)
  • Supply Chain (example Dynamic automation of ERP environment) and
  • Financial Supply Chain (example: block chain)

Developing a Vision for Digital ERP:

The data suggests that developing a vision for Digital Transformation of your Oracle Enterprise is critical to staying competitive. However, the journey to digital transformation could vary depending on how rapidly you chose to adopt.

IBM’s Oracle Practice offers an Industry Specific Digital Transformation workshop to help you envision this journey and develop the vision for your digital enterprise.You can reach out to me directly or contact your IBM representative directly or contact us at:

Let me leave you with a case study where the IBM team played a critical role in digitally transforming the consumer experience at ConnectOne Bank.



Oracle Digital Transformation Leader

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