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ERP Systems Lack Flexibility
By Mike Sachoff
Staff Writer
Article Date: 2009-12-14
Today's enterprise resource planning systems are not providing businesses with the architectural agility necessary to support businesses adequately, according to a new survey by IDC and Agresso.
Survey respondents said that the inability to easily modify their ERP system is disrupting their businesses by delaying product launches, slowing decision-making and delaying acquisitions and other activities that cost them between $10 million and $500 million in lost opportunities.
"Change to ERP paralyzes the entire organization in moving forward in other areas that can bring more value," said one survey respondent. Another added, "Capital expenditure priorities are shifted into IT from other high payback projects" just to keep the ERP system in line with business.
Only 2.8 percent of businesses had made changes to their ERP systems and the ERP modification rate for the rest is large:
43% are continuously making changes "as needed"
16.8% are making changes monthly
14.5% alter their systems daily or weekly
12.2% undertake change annually
"IDC believes that while business change is an inescapable constant, organizations may lack an understanding of the potential cost and impact of business disruption tied to adjusting their ERP system," states the IDC white paper analysts.
"For ERP buyers in high-change environments, this means that 'architectural agility to support ongoing change,' may be the single most important buying criterion to minimize change-related revenue loss, business disruption, stock price declines and the lost business opportunities."
About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.
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