Infor LN CE and the composable ERP concept

In an ERP implementation, we often see that features and functions implemented are driven by the complicated structure of the base ERP application instead of the actual business (process) requirements.

The question “What is better?” is not that relevant as you know that the answer is in the implementation process. Sometimes consultants propose to alter the process, and sometimes consultants alter the system to bring symphony and harmonisation. Consultants believe that this is the way ERP implementations are done, and simply continue working this way. However, this leads to the discussion If companies (and we also mean the bigger enterprises) really need the heavy, monolithic ERP applications (with their compromises and concessions with regards to both processes and systems)? Can we not better implement and use just what we need, instead of owning and implementing the big, fat, machinery?

In the context of ERP systems, the term “composable ERP” refers to an approach that emphasises modularity, flexibility, and adaptability. Unlike traditional monolithic ERP systems that are tightly integrated and often rigid, composable ERP systems are designed to allow businesses to select, implement, and update individual components or modules as needed, creating a system tailored exactly to the companies specific processes and requirements.

Main Key Features of Composable ERP

Modularity ERP systems are made up of different pieces or parts, like finance, supply chain, HR, and CRM, or even smaller blocks like Invoicing, Sales Order registration, Sales Order scheduling, each working separately. Businesses can pick only the components they need, instead of having to use everything at once.
Process Focussed By focusing on the business process requirements and the business process flow as required by the business only the ERP parts that are required are selected and configured.
Interoperability These parts or modules are designed to work together smoothly, and they can also connect easily with other systems, helping everything work as one.
Scalability As businesses grow or they need change, they can easily add or upgrade parts of the system without starting from scratch.
Flexibility Each part or component of the system can be changed or set up in a way that fits how a business works, allowing for flexibility when market or process changes happen.
Cloud Architecture Composable ERPs often use cloud technology, meaning they are easier to access, update, and maintain over the internet.
Focus on Best-of-Breed Solutions Businesses can mix and match the best tools from different companies to create a solution that works best for them, rather than being tied to one company’s system.

Benefits of Composable ERP

Better fit with the business: Business Processes are key in the selection and implementation of the ERP parts. The business is forced to focus and spend time on process design and documentation. Without process flow, no system can be selected or implemented. This is even more and stricter the case than with the traditional ERPs. Because of the flexibility of selecting and implementing components (like pearls on a chain), the system will fit the business presumably a lot better.
Faster Time to Value: Businesses can roll out parts of the system step-by-step, which speeds up the process and reduces risks.
Pay what you use: Companies only pay for the parts they need, instead of paying for a whole, big ERP system.
Easier Upgrades: Each part of the system can be updated individually without disrupting the whole system.
Adaptability:Businesses can quickly adjust to changes in the market or their operations by adding or modifying parts of the system.

Challenges to Composability in ERP LNCE

There are two types of challenges for ERP LNCE to be considered a composable ERP:

1. Technical dependencies

· Interdependencies In Infor LNCE, the different modules (like Finance, Manufacturing, Supply chain) are closely integrated, for example, the Finance module relies on Manufacturing and warehousing to track inventory costs, and production orders etc.

· Data Integration ERP LN needs a lot of master data (like item lists and financial records) to be integrated in order to work. This makes it hard to set up just one part of the system on its own. Business processes, like O2C or P2P, connect multiple modules and use multiple connected data, making these processes too difficult to break into separate pieces.

· Legacy Architecture Infor LN offers a cloud based solution and deployment but it also offers on-premise implementation. The CE offers industry-based solution like automotive, industrial engineering etc, which requires detail implementation approach and they may not fit in all industries even though it is in same industry vertical, this might not be directly align with composable ERP strategy.

· Limited Plug-and-Play Capabilities Unlike fully composable systems, Infor LNCE modules may not always be used independently due to how they depend on each other. One example is that to use only the manufacturing module, it is required to setup basic finance to record financial transactions.

2. Process dependencies

· Process dependencies LNCE is designed and built based on pre-defined business processes. In other words, the processes are ‘built-in’ and can be adjusted, enhanced and modified, but in principle the ERP application has already been constructed according to these “pre-defined” processes. This has an impact on the flexibility in the design and construction of the customer-specific composable ERP.

How Infor LNCE Aligns with Composable ERP Concepts

Infor LNCE may not be a 100% “real” Composable ERP compared to what is in theory defined as a composable ERPs, but no one can ignore the fact that it has some very important features that can help businesses build a flexible system with careful planning. Below we are detailing out, how:

Modularity in Core Architecture Infor LNCE allows businesses to use modules separately with careful planning and minimum setup. Core modules like Finance, Manufacturing, and logistic – and in even sub-modules in the modules mentioned, can be implemented in a business processes based ‘pick-and use’ implementation strategy and gradually scaled over time.
Infor ION and OS Infor ION is part of Infor OS as CE package which offers help to connect LNCE with other systems. This is one of the most important features to adopt a composable ERP strategy. Example, businesses can link Infor LNCE to CRM systems like Salesforce or data tools like Tableau.
Phase wise Rollouts Even though the system is well-integrated, Infor LNCE can be deployed in stages: Phase 1: Start with core modules like Finance, Manufacturing, and Supply Chain. Phase 2: Add more advanced features, such as Service management, or traceability or scanning solution later.
Infor Cloud Infor LNCE’s Cloud Suite allows businesses to gradually add new features as needed, without causing big disruptions.
Industry Specific CE Infor LNCE is designed for specific industries, allowing businesses to focus on what’s important to them: Automotive suppliers can focus on Automotive Exchange, Manufacturing and Supply Chain. Aerospace companies may prioritise Project Management, Service and Quality Control.
Process modelling built in Process modelling and application mapping tools are built in and support the design and implementation of the ERP.

Our Final thoughts..

Though Infor LNCE is not a fully composable ERP, it has many key features such as modularity, cloud-native design, and integration capabilities that allow businesses and industries to align with composable ERP principles. By utilising tools like Infor ION and functions like Infor OS, adopting phased rollouts, and focusing on industry-specific deployments, organisations can make Infor LNCE more flexible, scalable, and adaptable. Even though there are challenges, careful planning can bridge the gap, enabling Infor LNCE to move toward composable ERP concepts.

What are your thoughts?

Written by Amit Kumar