ERP 2011 and Beyond

5/6/2011 at 3:39 pm by The Sage ERP Team

It’s been almost 40 years since the first primitive (by comparison, anyway) ERP systems were launched, and we’ve come a long way. It used to be that business leaders only catered to a local audience, and they could keep track of their expenses and revenues with nothing but a pen and some paper. But as the business world has continued to grow and expand, businesses have found themselves in need of more and more sophisticated technology in order to stay on top of the dog pile that the market can become in a global economy. With dozens of competitors vying for the top spot in every niche, ERP can be the ticket to securing dominance.

It’s been a wild ride for vendors and businesses alike since ERP first came on the scene. Writes Thomas Wailgum for CIO.com, “2010 saw unprecedented lawsuits, impressive growth in new software-delivery models, TMZ-worthy executive shake-ups and many critical acquisitions that, combined, should have lasting effects on the enterprise software market.”

“Even though past performance does not guarantee future results, I believe that in 2011 we will bear witness to just as much dramatic change – spectacular customer successes and failures, some ERP vendors crushing the competition and others crashing and burning, and pent-up customer frustration with the status quo in traditional ERP deployments,” Wailgum continues.

In other words, things are about to get shaken up in the ERP world. Necessity is the mother of invention, so as executives realize more and more what they need to make their business dreams come true, they’ll be working to find the perfect solution to take their enterprises to the next level. Wailgum believes that 2011 will see an increase in the pickiness of ERP shoppers, with businesses becoming increasing aware of exactly what they need (and don’t need) in a software package.

“It’s about time ERP buyers got a bit ‘choosier’ with their RFPs and selection processes, as well as upgrades and customizations,” he writes.

Of course, that doesn’t mean buyers will necessarily be smarter when they start implementing their systems. Wailgum doesn’t believe that the number of ERP failures will let up – at least, not until businesses get serious about making sure that they’re prepared for an implementation long before the project even starts. The only person who can prevent an ERP failure is you; no amount of sophistication or technology from the system itself or the vendor can save you if you aren’t willing to put in the effort to make ERP work. It can be arduous, but with the proper preparation, you can do it – and your ROI will be well worth the effort.

Wailgum’s prediction for 2011? “Too many companies will continue to skimp on training programs in the name of ‘IT efficiencies’ and ignore proven change-management strategies,” he says.

Don’t be among them. Dedicate yourself to training and don’t try to get around the essentials for the sake of cutting corners – you might save a few bucks in the short run, but in the long run, you’re sure to end up paying more … much more.

If 2011 is your year for ERP, you’ll need to be dedicated and agile when it comes to your implementation project. You’ll need to work hard to secure your best shot at success, but if you do, you’ll be rewarded with an amazing ROI and a spot at the top of your industry.