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Inflexible ERP systems wasting millions

Microscope contributor

The spectre of wasted money and failed implementations that used to haunt the ERP market has not been banished completely with users still experiencing frustration with their technology.

According to research carried out by IDC on behalf of midmarket ERP specialist Agresso the flexibility that is often promised by the investments in business intelligence is not only non existent but is costing firms money.

IDC estimates that slowing decision making and delaying acquisitions is costing some companies as much as £300m in lost opportunities.

The vast majority of those quizzed by analysts revealed that they had to make on-going changes to their ERP system to make sure it managed to provide the flexibility that was required.

Those changes themselves were estimated to run into the tens of thousands over the course of a year.

“It’s not unrealistic to say that the wrong ERP choice in a high-change industry spells disaster,”said Ton Dobbe, vice president of product marketing for Unit4Agresso.

“Companies operating in industries that are highly regulated, consolidating via M&A activity, frequently replacing leaders or making other important changes, need to adjust their ERP selection criteria appropriately when choosing new systems.”


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