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03.02.07
Exposing The Hidden Costs Of Putting Off Your ERP Upgrade
 By
Margaret Hunnicutt
It's very easy for business managers to put off an enterprise application upgrade.
The tendency is to only look at the immediate
and obvious impact on cash flow. There are other factors so often overlooked that also impact cash flow. While they may seem less tangible, these seven factors directly effect the medium term and more importantly the long term, profitability of your organisation.
First, let's explode the two most common myths to delay taking up an ERP software upgrade.
Excuse #1: "Upgrades are by the vendor and for the vendor."
It's true, and it's not true.
Having worked as a developer in a software house and in the customer support team, I can say from first-hand experience that customers demand enhancements. This means existing customers and prospective customers ultimately drive upgrades.
The true part is yes, vendors want new customers and so they will adapt the software to be more attractive to new customers.
The false part is that many software houses earn more money per year from their existing customer base than from new customers. To stay in business, the vendors must listen to and respond to their existing customer base. Over the last 10-15 years, we've all seen the impact on even the large software manufacturers that didn't get this right.
To suggest the only benefactors of upgrades are the software vendors is not correct. To suggest that your business will necessarily benefit from every upgrade is also not correct.
The rate at which upgrades are offered is not going to suit all customers all of the time. So the rate at which your business adopts the upgrades is certainly in your complete control. You have the challenge of finding the right balance between the benefits of the upgrade and when you adopt them, relative to your environment and industry.
Excuse #2: "If it ain't broke - don't fix it."
If we're going to throw adages around, this one could equally be discredited with "if you're standing still, you're falling behind".
Continue reading this article.
About the Author:
If you are looking to draw out the best functionality and efficiency from your existing investment in IT, call us now. Our specialty is JD Edwards applications post-installation professional services. © Qsolve Pty Ltd, all rights reserved www.Qsolve.com.au
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