ERP Modernization: Why It’s a Top Priority for Midsize Companies in 2012
May 2nd, 2012ERP 0 CommentsMarch 2012 from Oracle – “The last great wave of ERP modernization occurred in the lead-up to Y2K, but according to industry experts, a unique set of business, economic, and technological forces are converging to make ERP modernization a top priority once again in 2012…
The panelists identified the following forces that are driving this burgeoning phenomenon.
- Volatile economic conditions
- Increased scrutiny by equity firms into the IT systems of pre-IPO, high-growth firms
- Increasingly aging ERP systems that are becoming very expensive to maintain
- Old systems ill-adapted to transformed business conditions in 2012
- Faster to deploy, lower overall total cost of ownership (TCO), and lower-risk access to enterprise-class software…”
180 View – We agree with the article that ERP demand has picked up. However we disagree with the causes stated above. We think the primary driver is a better economy and 2012 will likely be followed with even more demand in 2013 and 2014 as the economy gets back on track. Despite the logic of retooling when things are slow, most companies are not prepared to invest in technology when they are forced to lay off their employees. However, as the economy improves, the need for better systems becomes more critical. Growth can be achieved by hiring more people to get the work done or by investing in a new system that should allow growth with the same number of employees. Another big factor is in the next article.

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