Most companies stick with a single ERP provider for 20-30 years. And 80% of attempts to swap in one ERP for another fail. Usually after customers waste millions of dollars and years of engineering work.
The underlying complexity of the physical processes managed by ERP is enormous. ERP systems are digital models of a company's physical operations.
Platform lockin and platform innovation are inversely proportional. Companies like SAP in ERP, and Epic in EHR, simply don't have to innovate to make lots of money.
That's one reason why technological change in those industries is so slow.
Most companies stick with a single ERP provider for 20-30 years. And 80% of attempts to swap in one ERP for another fail. Usually after customers waste millions of dollars and years of engineering work.
The underlying complexity of the physical processes managed by ERP is enormous. ERP systems are digital models of a company's physical operations.
Platform lockin and platform innovation are inversely proportional. Companies like SAP in ERP, and Epic in EHR, simply don't have to innovate to make lots of money.
That's one reason why technological change in those industries is so slow.