Friday, August 6, 2010

Prediction: ERP Implementations

ERP implementations are coming back. It has been a while since ERP's have been major investments for companies. (If you don't remember the last time, Google "Y2K").

Reasons for this prediction:

- CFOs are sitting on record amounts of cash (See CFO.Com article).
- This cash needs to be put to productive use.
- CFOs are reluctant to use the cash for Hard assets (Real Estate, Plant Equipment).
- Most ERPs are at least 10 years old, and significant technology improvements have been made since, which can allow for significant value-add.

The 'IF' Factor:

If ERP Vendors and Integrators can speak the CFOs language and make the case for significant bottom line improvements, CFOs may be willing to make that investment.

For True Strategic CFOs:

If you consider a large system investment to be in your future, make the decision as soon as possible - costs (ie talent) will be more expensive once everyone else takes the decision.

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