{"id":2134,"date":"2011-05-31T07:00:07","date_gmt":"2011-05-31T15:00:07","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=2134"},"modified":"2011-05-31T07:00:07","modified_gmt":"2011-05-31T15:00:07","slug":"erp-custom-software-inhibits-business-agility","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/erp-custom-software-inhibits-business-agility\/","title":{"rendered":"ERP: Custom Software Inhibits Business Agility"},"content":{"rendered":"

ERP has often considered to be a differentiator and game changer for businesses. \u00a0ERP enables the automation and centralized management of business processes, bringing efficiencies and enhanced productivity. \u00a0It used to be that only very large companies with deep pockets could afford the luxury of ERP systems. \u00a0ERP is notoriously expensive. \u00a0The cost for implementing an ERP system can often run into the tens of millions of dollars.<\/p>\n

With all the hype around the known benefits of ERP, the findings of a report by IFS North America<\/a> are surprising. \u00a0The report found that ERP systems lock businesses into rigid business processes, making them very difficult to change once implemented. \u00a0 57 percent of companies say that their ERP software locks them into a prescribed way of doing business that is very difficult to change once implemented. \u00a0Businesses become less agile because the cost and effort to reconfigure the existing system becomes too steep.<\/p>\n

The reports findings are not totally unbiased. \u00a0IFS North America is an ERP vendor that is trying to promote and differentiate themselves from the brand-name incumbent software vendors like SAP and Oracle that \u00a0dominate the ERP market. \u00a0But there is certainly some truth in their criticism.<\/p>\n

ERP software has a reputation for being hard to use. \u00a054 percent of companies say that once their ERP system was implemented that it became very difficult to change and reconfigure. \u00a0The report described<\/a> ERP implementations as being “dipped in concrete” because they are so difficult to change once in place.<\/p>\n

Only 10 percent of companies said that their ERP systems were easy to use and reconfigure. \u00a040 percent said ERP was \u201csomewhat difficult to use,\u201d 13 said that it was \u201cvery difficult to use\u201d and 1 percent said it was \u201calmost impossible to use.\u201d<\/p>\n

Web 2.0 and SaaS are two technologies that are changing the change the world of ERP. \u00a0Expect ERP software to become easier to configure, easier to use, and available at more affordable price points.<\/p>\n

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ERP has often considered to be a differentiator and game changer for businesses. \u00a0ERP enables the automation and centralized management of business processes, bringing efficiencies and enhanced productivity. \u00a0It used to be that only very large companies with deep pockets…<\/span><\/p>\n

Read more ›<\/a><\/div>\n

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