Enterprise resource planning investment essential
Mon, 16 Nov 2009
Companies cannot afford to put off investing in enterprise resource planning (ERP), it has been suggested.
According to the National Computing Centre (NCC), firms which fail to invest in this vital area during the recession risk falling behind their industry rivals.
The IT membership and research organisation claimed last week that the current economic situation is having "a major impact" on investment in ERP and enterprise systems.
In 24 per cent of organisations, all future ERP and enterprise software projects are on hold, while 41 per cent are seeing them postponed, the NCC said.
This compares to 29 per cent of companies which are not experiencing any cutbacks and six per cent who are spending more on enterprise applications.
Michael Dean, director of advisory services at the NCC, said that in the long run, businesses postponing ERP projects "will have a higher hurdle to jump".
However, he added that businesses looking to cut costs due to the recession may still be able to afford to invest in ERP because the availability of ERP as Software-as-a-Service will enable organisations to reduce set-up costs.
The key to implementing enterprise resource planning is to stay focused on the big picture - future payoffs that include more efficient business processes and substantial cost savings for the company – according to software and services provider Consona.
Posted by Alex Boardman
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