ERP trends for the second half of 2010

8/23/2010 at 10:17 am by The Sage ERP Team

ERP trends for second half of 2010

A field as dynamic and complex as enterprise resource planning is always shifting and changing to meet the mercurial needs of businesses. ERP vendors are always working to customize and update their offerings to remain as relevant as possible – and the way they price their products is no different.

Now that we’re more than halfway through 2010, ERP trends for the year are becoming clearer. Of course, the changes in ERP systems and ERP system pricing don’t work on an annual basis; they’re constantly morphing and changing as needs evolve – which means pricing may still undergo some shifts before the year comes to a close.

How will these trends evolve? ERP Projects has some speculation.

Licensing fees are decreasing across the industry. Since ERP software has become increasingly available, ERP vendors are fighting to get the dominant market share. One way to stay competitive and make an ERP product more appealing than a competitor’s offering is by slashing licensing fees, which companies are doing in droves. In instances where the fees can’t be waived or reduced, many vendors are offering payment plans that make the expense more manageable. Some even offer total project financing, which is a huge boon for smaller corporations or those that have been particularly hard-hit by the economic crisis.
A lot of ERP vendors are also working to secure a greater market share by offering increased incentives. Much like a sub shop might throw in a free drink if you buy a bag of chips, ERP vendors are throwing in little goodies to entice companies to buy their products. Some of these add-ons might include additional training, reduced implementation costs and lower maintenance feeds. But don’t let yourself get caught up buying things just for the add-ons – make sure they’re really something that’ll help your company reach its full potential, rather than clutter meant to catch your eye. Don’t forget that there really is no such thing as a free lunch.
Another ERP trend concerns improved customer service and maintenance. ERP systems require some maintenance, and the fees for repairs and upgrades can be high. Customers often complain that the cost of maintaining an ERP system is unfairly expensive, especially when they aren’t satisfied with the quality of the service they receive. Some ERP vendors make as much as a 90-percent profit on maintenance costs – a perk that isn’t likely to last much longer as customers become aware of ERP vendors that provide better service at lower prices.

ERP systems aren’t static for long, so pay attention as the trends evolve, and you’ll always be at the forefront of the industry.