To Buy (ERP) or Not to Buy (ERP)

3/14/2011 at 11:22 am by The Sage ERP Team

More than two years have gone by since the financial collapse of 2008, but many businesses and individuals are still struggling to pull themselves out of the rubble. It hasn’t been easy finding our footing after the failure of so many major corporations and institutions shook our worlds, but we’re hanging in there and keeping the American dream alive.

There’s some debate about how companies can position themselves in order to hit the ground running as the economy continues its slow but steady recovery. Should we wait and sit idle, refusing to hire until we have more capital? Should we take risks by investing in major purchases in order to stand a better chance of coming out on top … eventually? There’s no real answer. Like hitting the blackjack tables in Vegas, it’s a gamble. It’s part skill, part luck and part know-how, but no matter what you do, nothing can guarantee you success.

What about ERP? Conventional wisdom tells us that we should hold off on big purchases, but following conventional wisdom never made anyone an innovator or a leader. In fact, some experts even recommend that the recession may be one of the best times your company can start implementing an ERP system, because it will make you more prepared to compete in a Darwinian post-recession marketplace that has eliminated all the companies too weak to survive the downturn.

“Although it is easy to put off ERP projects until the economy improves, it is even easier to use this time as an opportunity to improve business operations and systems,” says Eric Kimberling, ERP and business consultant. “The main caveat is that companies need to be smarter than ever in doing so.”

Although ERP is a sizable upfront investment, it leads to serious cost savings in the long run. Plus, as you know from keeping your own business afloat during the recession, you can often find discounts on products as companies struggle to keep customers and purse strings tighten around the country – there’s never been a better time to negotiate for the ERP system you really want.