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November 24, 2011

55% of mid-market companies cannot afford to change ERP software: study

Time and money are big constraints for the change

By CBR Staff Writer

More than half (55%) of mid-market companies said they cannot make data and business process changes to their ERP software without the help of external consultants, which costs both time and money, according to a study undertaken by Technology Evaluation Centers (TEC) and provided by UNIT4.

A similar survey conducted by analyst firm IDC at the end of 2009 showed business disruption is considerable to non-Agresso ERP offerings when any significant changes are required.

According to UNIT4 VP Product Management Ton Dobbe, the situation has not improved much since then.

Citing a survey conducted by CFO Research conducted around the same time as the IDC study, Dobbe said, "It showed that users of traditional ERP systems required more than twice as much help from IT professionals to make changes, whereas Agresso Business World is designed to accommodate change easily without costly consultants and code-level programming."

He added, "But it is not only about the time and the resources, to the contrary: The longer it takes to make a business system change – the greater the disruptive impact to the organization – and this incurs millions and millions in hidden cost i.e. losses.

"ERP is the backbone of many organizations and where they struggle to adapt their systems to changes in the business, they will be over-spending, and not only on IT resource, without ever really meeting business requirements."

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